It was recently reported by an automotive news website, that the car ownership market shares have gone against the grain that many were predicting.
For example, it was expected that the share of the market’s smallest cars would begin to increase once the dust of the government scrappage scheme settled. This turned out to not be the case and this portion of the market actually lost part of its share
What’s even more surprising is that in a time when the sales of high end luxury cars should theoretically be falling as a result of spending cuts by the UK government, the truth is that this market share actually increased, with the sales of executive cars, sports models and SUVs all seeing a distinct rise.
When you think about it, taking a look at a number of cars that are on the road as of late, it becomes apparent that there does appear to be more high end cars – SUVs in particular – on the road.
However, what many buyers aren’t aware of is that just because a car costs 40, 50 or 60 thousand pounds, it doesn’t mean that the driver has to pay that money upfront. And the reason why you don’t need the total amount of money is due to car leasing – the most popular product being Personal Contract Purchase (PCP).
According to recent statistics, approximately 60 percent of all cars bought on finance of some form are done so through PCP. Once something that many believed was restricted solely to businesses, car leasing has become an extremely popular way to finance a car for personal use in the UK and this is due to the fact that PCP offers the car buyer a whole host of benefits.
For example, one of the most prominent is that the car buyer isn’t actually a buyer, as they’re just leasing the car. Whilst this does mean that the car isn’t in your name and isn’t your own possession in that respect, it brings with it the benefits of not having to worry about it depreciating in value or even having to go through the process of selling it once you’ve finished using it – at the end of the agreement, you simply hand the car back to the company.
What’s more, as you don’t own the car and therefore don’t have to pay for it in full, the monthly payments on car leasing are substantially less than if you were to take out a personal loan, which means that you can very often afford a car that would otherwise be out of your budget.
Just because you don’t have the cash to hand doesn’t mean that you can’t have the car that you want. You might not have considered a Personal Contract Purchase agreement in the past, but if you want to be part of the growing market share of high end cars, it’s strongly recommended that you take a look to see what car you can get and how affordable the monthly payments can be.
Mark Rourke is a specialist who researches the latest car leasing deals.