WITH premium brands withdrawing discounts, personal lease customers are looking to where value lies.
That’s the findings from lease deal aggregator website Leasing.com, which finds that personal leasing enquiries were up 43% in Q1 2022, while vehicle values dropped 19%.
The average value of the most popular leased vehicles for the first three months of 2022 was £26,863, down from £33,221 for the same period the previous year, as cost of living increases hit households.
With this in mind, it is unsurprising that premium brands have been hit hardest with a reduction pin demand. Instead, motorists are looking for improved value for money with their enquiries.
Last year, premium manufacturers made up six of the top ten enquired about models, but this year that has fallen to two brands. Instead, the Kia Sportage, Nissan Qashqai, and Vauxhall Corsa were the most popular cars to lease in Q1 2022.
Leasing.com data also found that customers are looking to spread out their financial commitments over a longer time period by increasing contract lengths. Last year, three year agreements were the most popular term length, but this year it’s four year deals.
Changes in working models over the past few years have also been reflected in queries, with increased working from home accounting for lower average mileages for customers. Demand for lease agreements at 5,000 miles a year have increased 25% in Q1 this year, while 10,000 mile allowances have dropped 2%.
The move to electric cars continues to rapidly climb, whether customers are looking at improved choice, lower running costs, lessened environmental impact, or all of the above. As such, personal leasing queries increased 161% in Q1 compared to last year; Tesla’s Model 3 was the most popular EV.
The automotive market is a strong indicator of consumer confidence and our Q1 data shows some fascinating trends. With a 43% increase in demand for personal leasing through our website, consumers are not only returning to market after the pandemic but are prioritising new, reliable vehicles over longer terms to give themselves financial certainty in challenging conditions.
Paul Harrison, head of strategic partnerships at Leasing.com
Top 10 most enquired PCH vehicles 2022
1 KIA Sportage – £27,470
2 Nissan Qashqai – £25,230
3 Vauxhall Corsa – £17,595
4 Hyundai Tucson – £28,500
5 Peugeot 2008 – £22,490
6 Nissan Juke – £21,085
7 Mercedes-Benz CLA – £32,135
8 Volkswagen Golf -£25,095
9 Tesla Model 3 – £45,935
10 Toyota Yaris Cross – £23,095
Source: Leasing.com
