Getting a car on a personal lease is an incredibly popular option in the UK. Over the course of 2016, the car leasing market grew by approximately 10%. 57% of that increase can be attributed to drivers adopting Personal Contract Hire (PCH) agreements whenever they want a new or used car.
PCH is an offer that continues to capture the imagination of drivers. There appears to be no let-up either, with Graeme Bannister, consulting director at Frost & Sullivan, recently highlighting that he believes personal leasing “has the potential to get a lot bigger”, predicting that it will also rise to 10% before 2020.
The benefits of PCH have been around for a while, so why such industry growth so recently? A large part of the rise of PCH has been thanks to greater awareness of the potential a bespoke contract can provide; better-targeted advertising is helping to get the word out and let people know there’s another option out there than outright purchasing a car.
So, what are some of the benefits that PCH can provide, and how could it be beneficial for you when you’re in the market for a new or used car?
By agreeing to certain stipulations in your contract and agreeing to them across the length of your lease, PCH could potentially offer a major boost to families’ finances when they want to drive a new or used car. PCH payments are typically far lower than when buying a car outright, allowing people to better budget for their needs – especially during a time of low wage growth and rising inflation.
That point leads directly into this one. With payments typically lower on a bespoke, personalised PCH agreement, that can provide far more choice to people when they’re looking for their next vehicle and open up a wider range of options for them to consider. With so many new and used vehicles available for more affordable monthly rates, families could have a better-looking or larger car for their budget that suits their wants and needs.
The growth of PCH and leasing can also be filtered down to changing buying habits in the marketplace, and the desire for cars to offer something more than negative equity on the driveway. We’ve already mentioned the nation’s economic status; drivers no longer want to put a large chunk of their money toward a long-term car investment. They want something that’s far more useful for them and their money – something a lease can provide.
There are many other factors for the growth of PCH in people’s lives. A growing concept of the desire to ‘use’ a car rather than fully owning one is chief amongst them, and by partnering with the right company, people can have access to a more-affordable, attractive car for them and their needs on a short-term agreement, whether that’s somebody wishing for a sportier model or a family in need of a brand-new estate.
Complement your lifestyle with a Personal Contract Hire that works for you financially by contacting the LeaseCars4Less team now on 03456 43 25 43.
* All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.
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