Used cars and quick deliveries named as key leasing trends
25 January 2019
Author: Sean Keywood
Used car leasing and click and collect-style deliveries are set to be among the major trends in business car leasing this year.
That's according to Tom Preston, managing director of Hippo Leasing, who says it's important for firms to be aware of the changing shape of the market.
According to Preston, user car leasing is a growing area of interest.
He said: "With uncertain political times ahead for the UK, many businesses are hesitant to make large purchases.
"As such, there's a growing and competitive market for used car leasing contracts which are often a more affordable alternative to buying or leasing a new vehicle."
Preston explained that while the choice of model, colour and spec might be more limited than with a new car, used cars were typically cheaper to lease and insure. The improved reliability of modern cars was another attraction.
On the subject of delivery times, Preston said that leasing companies are waking up to a growing demand for vehicles to be supplied quickly.
He said: "In the age of 'click and collect', we're used to getting what we want extremely quickly. So why shouldn't cars and vans be available to lease instantly online too?
"Leasing companies are waking up to this growing demand and now offer instant orders with same day collection or quick delivery options - often under 48 hours.
"Over the next twelve months, in-stock ranges will increase and leasing companies will slash delivery times even further to keep competitive."
Another area of increasing interest is subscription services, which offer monthly fees including insurance, maintenance, road tax and other costs.
Preston said: "This is certainly a modern concept of vehicle ownership, making things simpler for time-poor business owners and fleet managers.
"However, subscriptions don't necessarily mean you're getting the best price for each component being offered as part of the monthly fee.
"It may pay off if you're looking for a quick and easy way to have access to a car or van for a few months, but for longer periods it's worth exploring how leasing compares on cost."
Environmental concerns are also becoming increasingly prominent and, according to Preston leasing, can also help dodge the potential risks of adopting electric vehicles (EVs).
He said: "As EVs become more popular, the infrastructure needed such as public charging points will improve, there will be more choice and they'll become more affordable too.
"With EV vehicles depreciating quicker than their traditional counterparts, business leasing customers avoid this pitfall and are able to keep up with the fast-moving EV technology market by having the option to regularly upgrade their model.
"It also signals to your customers you're a responsible company which is making an effort to reduce its carbon footprint."