In recent months, Leasing.com has highlighted the cost benefits leasing can provide, especially on electric vehicles. When compared against traditional finance (PCP), leasing was the cheapest in almost nine out of every ten times for dream EVs like the Audi E-Tron, with a saving of £9,108.64 compared to PCP over a 48-month period.
According to 2022 pricing data across Leasing.com’s top 15 most popular BEVs, leasing was the cheapest and most cost-effective option on 87% (13) of those models. Across the list, the highest cost difference was 31%, with the average difference in cost being 18%. The highest saving came in at £9,108 for Audi’s all electric e-Tron, with the average saving across the board netting out at £2,313.58.
New partnership will see Motorway’s platform integrate directly into Leasing.com’s enquiry pages, allowing prospective customers to sell their car for a great price in as little as 24 hours through Motorway, before leasing their new car. The deal sees two rapidly growing brands come together in a multi-year agreement designed to revise the way online car leasing works, which has historically relied on car owners selling their car privately before signing a new lease contract.
Leasing.com is forecasting a 50% growth in enquires in 2022, which would see the total value rise to £1.64bn by the end of 2022. The numbers make for positive reading, especially considering that recent Society of Motor Manufacturers and Traders (SMMT) data shows that 2021 new car registrations were still down 28.7% on pre-covid levels and up only 1% up on 2020.
As UK drivers returned to some semblance of normality after COVID-19 lockdown restrictions, new cars were high on the agenda for many consumers. Less economical saloons were rejected in favour of smaller, more economical models to help consumers balance their household budgets.
Partnership was conceived during another year of growth in the personal leasing market. The latest statistics from the Finance and Leasing Association (FLA) shows that the value of new car personal leasing underwritten in the year to September grew 44% versus the same period last year, making it the fastest growing new car finance product.
With a flurry of new hybrid and battery electric SUVs and compact vehicles entering the market, it was no surprise to see those vehicles dominate Leasing.com’s top 10 league table of most enquired about vehicles. The Volkswagen Golf retained its number one spot in November, with plugin hybrid variants being particularly popular amongst motorists. The MINI Hatchback jumped from 7th position in October to 2nd in November off the back of a number of strong offers of the battery electric variant.
The huge overall growth in demand for new electric vehicles between July-September 2021 was the result of growth in the individual BEV, plugin and hybrid segments. Those three electric vehicle segments recorded a combined sales enquiry market share on Leasing.com of nearly a third (32.1%) in Q3, up from under a quarter (22.9%) in Q2.
Leasing.com’s data coincides with a strong year for the personal leasing market more broadly. The latest statistics from the Finance and Leasing Association (FLA) showed that the value of personal contract hire (PCH) contracts provided by funders grew faster than any other form of motor finance in the 12 months to August 2021.
Leasing rather than buying, is seen by many as a viable option for those looking to move away from ICE (internal combustion engine) vehicles because it enables motorists to test out EV technology without long-term ownership commitments.
Research conducted by Leasing.com in August 2021 comparing the eight lowest total cost leasing deals on economy vehicles with equivalent manufacturer PCP offers found that, on average, leasing was £1,269.48 cheaper over the course of the contract and £23.08 cheaper per month.
While ‘affordable’ leased vehicles (priced between £100-£300 per month) saw a 38% increase in enquiries compared to August last year, this figure is 59% for high-end vehicles (priced between £400-£800 per month). The trend suggests ‘return to normal’ spending habits amongst a growing number of consumers and a good sign that the UK continues to emerge out of the pandemic.
Sales enquiry figures show that demand for EVs has been steadily rising over the first half of the year and has outperformed demand for diesel models. So far, BEVs have risen 27% and hybrids by 57% but it was plugin electric hybrids that saw the biggest increase, up 78% compared to the first half of 2020. In contrast, petrol vehicles have only seen a 3% growth, while diesel enquiries plummeted by 13%.
Driven by the Hyundai Ioniq hybrid model range, which had the most enquiries of all vehicle derivatives, the Korean manufacturer saw its position jump from 13th to 5th in Leasing.com’s June league table of most popular car manufacturers.
CONSUMER demand for electric vehicles has overtaken diesel engines for the first time in the new car market. Sales enquiry data from Leasing.com shows consumer demand for EVs – battery electric vehicles (BEVs), plugin hybrid [...]