THE leasing broker deal aggregator, Leasing.com, says a review of trends seen on its website in 2021 provides insight into what leasing brokers can expect from 2022. So here we go.
Compact models get the nod
Less economical saloons have been rejected in favour of smaller, more economical models to help consumers balance their household budgets against rising living costs.
Popular models have been the Volkswagen Golf and MINI Hatchback, seeing double digit enquiry increases of 40% and 21% compared with 2020. Saloons on the other hand, saw numbers beginning to drop. The BMW 3 Series, the best-selling saloon in 2020, saw a drop in enquiries of 13% as leasing contracts for 5,000 miles or less increased by 43% in 2021.
Electric cars move ahead
The electrified sector, including battery electric vehicles (BEVs), plug-in hybrids and hybrids, out-performed diesel vehicles throughout the year and as December closed, saw a 69% overall increase in sales enquiries versus 2020, while diesel saw a 7% drop in 2021. The popularity of petrol vehicles, on the other hand, increased by 18% in 2021 versus the previous year, showing that not all drivers are convinced yet by an electric future.
Initial rentals on the rise
Larger initial rentals were a feature of 2021, with nine months upfront increasing by 34% year-on-year. One explanation is possibly the increase in savings following numerous lockdowns and stay-at-home orders, allowing more money to be allocated at the front of the lease. Another might be that it’s a way of keeping monthly rentals in line with previous expectations as rental costs rise.
Mileage profiles go down
Compared with 2020, last year saw a 91% increase in enquires for leases with 6,000 miles, while the popularity for 5,000 miles per year agreements increased by 51% over 2020.
10,000 was the most popular mileage allowance for electric vehicles in 2020, and this fell to 8,000 miles last year.
Stock vehicles more attractive as chip shortage hurts vehicle availability
The global semiconductor shortage remains an ongoing issue with OEM lead times on factory orders extending beyond 12 months in some cases. Consumers have turned their attention to in stock vehicles with in-stock orders increase by 7% over factory orders in 2021. Factory orders were 27% higher than in-stock orders before shortages in 2019.
Paul Harrison, head of strategic partnerships at Leasing.com, commented:
Our 2021 trends indicate what’s likely to remain in store for the new car market in 2022. With long lead times expected to continue throughout this year, the most popular vehicles are likely to be those that consumers can most easily get hold of, which offers an opportunity for some manufacturers to quickly gain market share. The huge increase in choice of electric vehicles and their improved affordability means the leasing sector will also continue to outperform the wider new car market in 2022, as it has done for several years. And personal leasing will gain market share from rival finance products as savvy consumers look to access the latest technology in the face of rising new car prices.
Ralph Morton is the leading journalist in the leasing broker sector and editor of Broker News, the website which provides information and news for BVRLA-registered leasing brokers. He also writes extensively on the fleet and leasing market in both the UK and Europe.
