Considering whether to lease a car? We’ve analysed industry stats to help you make an informed decision here.
In this guide…
As the automotive landscape shifts towards a more digital and flexible future, the popularity of car leasing continues to rise sharply in the UK. The latest statistics reveal that car leasing now accounts for 20-30% of all new cars on the road, a trend fueled by the appealing options that cater to a diverse consumer base. In this blog, we delve into the current state of car leasing in 2024, exploring the big trends and the less favoured ones, to provide you with the crucial insights needed to make an informed decision about acquiring your next vehicle.
Shifting Trends in Car Acquisition
In recent years, the way in which people acquire their cars has changed significantly. According to iVendi, a staggering 74% of individuals anticipate using online outlets for securing their next vehicle, with a pronounced preference among younger demographics and women. Despite this digital shift, physical dealerships maintain their importance, providing essential in-person interactions.
The landscape of car ownership is also changing markedly. ACL Automotive reports that over 1.6 million people in the UK now opt for car leasing. This trend underscores a growing inclination towards leasing, driven by an array of flexible options that cater to diverse consumer needs. Factors such as economic stability, low interest rates, and favourable VAT policies further enhance the attractiveness of leasing, making it a prudent choice for both individuals and businesses seeking to minimise upfront costs and maintain fleet flexibility.
Rising Stars: Vehicle Types in High Demand for Leases
The UK’s car leasing market is particularly vibrant for electric vehicles (EVs). Registrations of plug-in hybrid electric vehicles (PHEVs) soared by 77% in 2021 compared to the previous year, capturing 14.7% of all new vehicle registrations. This surge is largely fuelled by heightened environmental awareness and the government’s Office for Zero Emission Vehicles, or OZEV, to phase out petrol and diesel vehicles, positioning EVs as a leading choice for lease agreements.
Top Incentives & Leasing Offers
Leasing emerges as an increasingly affordable alternative to buying, particularly used cars. The rapid technological advancements in vehicle safety, connectivity, and entertainment systems are significant drawcards, making new cars more appealing and accessible through leasing arrangements.
Lease Term Preferences in 2024
The preference for shorter lease terms is gaining momentum, with 12-month contracts now becoming the norm. This shift reflects a growing desire for flexibility and the opportunity to regularly upgrade to newer models or technologies without a long-term commitment, which a 12-month lease surely provides.
Cost Concerns: Impact of Rising Car Prices on Lease Rates
The automotive industry is not immune to economic pressures. IBIS predicts a 5.8% rise in new car prices by the end of 2024, largely due to inflationary pressures and semiconductor shortages. This uptick in prices could potentially influence lease rates, although manufacturers are attempting to mitigate these impacts by adopting a “push” model, offering more financially attractive new models through appealing finance options. There is a great deal of uncertainty about how 2024 will play out.
Looking Ahead: Where is the Car Leasing Market Headed?
As we look towards the future, the car leasing sector is poised for further growth. With an expanding range of vehicles available for lease, especially electric and technologically advanced models, and an increasing preference for online transaction methods, leasing is expected to become an even more attractive option for UK consumers.
Tips for Making the Most of Your 2024 Lease
For those considering a lease in 2024, it’s advisable to explore a variety of leasing options and stay informed about the latest incentives and offers. Opting for shorter lease terms can provide greater flexibility and ensure access to the latest vehicle technologies without the long-term financial commitment of purchasing.
At cars2buy, we have the UK’s high-rated range of quality lease deals, all from trusted dealerships. Our transparent service searches the internet for the best offers out there and aggregates them all into one place, allowing you to search, compare, filter and sort through them all without having to trawl through dozens of separate websites. We save you time on securing your new lease, and we have thousands of 12-month lease deals available for those who desire the flexibility it provides. Browse our car lease deals today, and you could be driving away in a brand-new car sooner than you think.