FEATURE: Are more people leasing their cars than ever?

These days, it seems that more people than ever are leasing their car over options like PCP or buying the vehicle outright.

It is thought that there are a few reasons for this, including waiting times for new cars as a result of the global chip shortage, the cost of living crisis and the ability to drive a new car every few years.

Keep reading to find out more.

The Difference Between Leasing & Ownership
First, it is important to look at the key differences between leasing and ownership.

With car leasing, you will pay a monthly amount over a pre-agreed period and then return the keys at the end of the agreement.

Motorists can then take out another lease on a newer car.

Unlike buying a car outright or through a finance deal, you never technically own the car, and this also means that you do not have to worry about depreciation.

Are Car Lease Deals More Popular?
Data from a car leasing comparison website revealed that motorists are opting for cheaper car leasing deals with a 44% year-on-year rise.

It is thought that the cost of living is a major reason why this is as leasing can be a more affordable option and depreciation is not an issue.

People are also opting for cheaper brands, arranging longer lease terms and reducing their annual mileage. With many motorists looking to make savings, leasing a car instead of buying could be a smart solution for those in need of a new car.

Leasing can also offer flexibility and the ability to upgrade to a new car every few years, which is an appealing factor for many.

What is the Outlook for the Car Market?
So, what is the outlook for the car market?

It is hard to predict with so much economic and global uncertainty, but it seems that the auto industry’s recovery will be further delayed.

Car leasing is likely to remain a popular option for the foreseeable future as an affordable and flexible way for motorists to get a new car and spread the cost over a long period during a time when many will be looking to avoid making any major financial decisions with the rising cost of living.

It is an interesting time in the auto industry right now and it is clear that motorists are favouring leasing as opposed to buying a new car.

This makes sense when you consider the financial benefits of leasing and the current economic situation, which is resulting in people looking to be more shrewd with their financial decisions.

Leasing can also give motorists the opportunity to upgrade to a newer car every few years and it is likely to remain a popular option for the foreseeable future.