New car consumers are increasingly turning to shorter lease lengths with less money upfront amid Brexit and general new car market uncertainty, new data from Leasing.com suggests.
Enquiries for 18-month lease deals with a one-month initial payment increased 190% year-on-year in March, with Volvo vehicles the most popular choice on this type of lease deal.
Although Volvo has launched its own subscription service, Care by Volvo, which includes servicing, maintenance and insurance, prices for this start at £500 a month for the V60. However, leasing enquiries for 18-month lease deals with one month upfront on Volvos cost between £300 and £400 a month.
Paul Harrison, Head of Strategic Partnerships at Leasing.com said: “As uncertainty takes a bite out of consumer confidence, it appears more and more people are favouring shorter-term contracts with no large initial payment.
“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 in a very uncertain market. There is a clear demand for short-term flexibility, but ultimately the monthly price for this flexibility has to be right for consumer budgets.”
Overall, the Mercedes A-class remains the most popular car to lease, according to the Leasing.com League Table. Four other Mercedes models appeared in the top ten for March, with the CLA benefiting from particularly attractive rates ahead of the all-new model arriving later this year.
Paul Harrison said: “Mercedes-Benz continues to shine thanks to a wide range of vehicles at extremely attractive monthly prices. The brand’s line-up is more varied than ever, and we expect Mercedes to do well throughout 2019.”