More individual motorists 'choosing to hire a car'

Date: 16/8/2011

An increasing number of British drivers are opting to hire cars on long-term leases, new figures have indicated.

The Finance and Leasing Association (FLA) said the value of private car leases rose by 55 per cent year-on-year in the second quarter of 2011, with more than £100 million granted to customers.

According to the trade body, dealer motor finance now accounts for 57 per cent of all new private car purchases.

Paul Harrison, Head of Motor Finance at the FLA, commented: "Increasing numbers of people are turning to leasing as an affordable finance option."

He added that leasing often makes "financial sense" when insurance and servicing costs are included, particularly among motorists who like changing their car every few years.

Research published by ContractHireandLeasing.com earlier this year revealed that petrol cars are still more popular than diesel models among private buyers in the UK.

The firm's survey found that 35 per cent of drivers would opt for a petrol engine when choosing their next vehicle, despite the typically better fuel economy offered by diesel.

Posted by Mary Treen