Motorists switch to shorter car deals

Personal contract hire and leasing plans are becoming increasingly popular with new car buyers, who seem to be turning to shorter contract periods with less money upfront, new data from Leasing.com has revealed.

The trend is due in part to Brexit and some uncertainty around consumer spending.

The website reports that enquiries for 18-month lease deals with a one-month initial payment increased by 190% in the year to March.

“More and more people are favouring shorter-term contracts with no large initial payment,” Paul Harrison, Head of Strategic Partnerships at Leasing.com, remarked. “These are likely to be consumers coming out of existing finance deals who want or need a new car, but do not want to commit to large initial payments or lengthy contracts. There is a clear demand for short-term flexibility, but ultimately the monthly price for this flexibility has to be right for consumer budgets.”