Cautious consumers turn to short lease amid Brexit uncertainty

Car consumers have been turning to shorter lease lengths with less money upfront amid Brexit and general new car market uncertainty, new data from Leasing.com suggests.

Enquiries for 18-month lease deals with a one-month initial payment increased 190% year-on-year in March, with Volvo vehicles the most popular choice on this type of lease deal.

Top 10 personal lease enquiries for March:

Mercedes-Benz A-Class
Volkswagen Golf
Mercedes-Benz C-Class
Volkswagen Tiguan
Mercedes-Benz E-Class
Seat Leon
Nissan Qashqai
Mercedes-Benz GLA-Class
Volvo S90
Mercedes-Benz CLA-Class

Although Volvo has launched its own subscription service, Care by Volvo, prices for this start at £500 a month for the V60. However, leasing enquiries for 18-month lease deals with one month upfront on Volvos cost between £300 and £400 a month.

Leasing.com’s head of strategic partnerships Paul Harrison said: “As uncertainty takes a bite out of consumer confidence, it appears more and more people are favouring shorter-term contracts with no large initial payment.

“These are likely to be consumers coming out of existing finance deals who want or need a new car, but do not want to commit to large initial payments or lengthy contracts in a very uncertain market. There is a clear demand for short-term flexibility, but ultimately the monthly price for this flexibility has to be right for consumer budgets.”

Top 10 personal lease enquiries for year-to-date 2019:

Mercedes-Benz A-Class
Volkswagen Golf
Mercedes-Benz E-Class
Mercedes-Benz C-Class
Volkswagen Tiguan
Mercedes-Benz GLA-Class
Seat Leon
Volvo S90
Nissan Qashqai
Audi A5

Overall, the Mercedes A-class remains the most popular car to lease, according to the Leasing.com League Table. Four other Mercedes models appeared in the top ten for March, with the CLA benefiting from particularly attractive rates ahead of the all-new model arriving later this year.

Harrison said: “Mercedes-Benz continues to shine thanks to a wide range of vehicles at extremely attractive monthly prices. The brand’s line-up is more varied than ever, and we expect Mercedes to do well throughout 2019.”

Top 10 manufacturer enquiries for year-to-date 2019: