UK residents admit they are deterred by the current unstable political climate when it comes to making big purchases, as they opt to lease cars, rent houses, and subscribe to services instead of wanting to commit outright, new research reveals.
Leasing Options has surveyed the nation's motorists to gain an insight into their financial decisions, whilst working with the British Leasing and Rental Association (BVRLA) to identify why so many are opting to pay monthly for products and services.
When it comes to shelling out the cash for a big purchase such as a house or a new car, 40% of those surveyed admitted that the current unstable political climate is deterring them from going through with the purchase. Therefore, it is no surprise that more than half (53%) declared that they currently pay monthly instead for between four and seven products and services.
Findings from BVRLA’s 2015 Car Rental survey showed that car ownership is highest in rural areas (90%) and lowest for renters in London (42%) and other major cities and their suburbs (56%).
The top reasons behind the decision to lease a vehicle identified by UK motorists were to be able to get a new car frequently (40%) and only being able to afford monthly payments (36%).
“Vehicle rental and leasing have never been so popular or used by such a wide cross section of society,” said BVRLA chief executive Gerry Keaney.
“Much of the growth in the leasing sector is being driven by a surge in demand for personal leases.
“A whole new generation of drivers are attracted by the ability to fix their motoring costs and gain access to a new vehicle with the latest safety and low-emission technology every few years.”
But it’s not just their car that UK motorists are leasing, when asked why they prefer to pay monthly for products and services, the top answer was to spread out the cost (52%) followed by it makes life easier (50%).
It appears as though Brits are following in the footsteps of our friends across the pond who are also facing an unstable political future, as the State of Automotive Financing 2016 report from Experian Automotive revealed that Americans are leasing more new vehicles than ever and borrowing more than ever when they buy.
Mike Thompson, brand manager at Leasing Options, said: “The increase in leasing culture across the UK does not come to a surprise, as more and more products and services are offering Brits the opportunity to make purchases in a difficult financial climate.
“The ease of monthly payments is a major attraction to so many and the opportunity to have access to new products on a regular basis without the stress of bulk payments and saving periods is something which Brits are now coming to treat as the norm.”