More drivers choosing to lease car

18/08/11

Kev Kiernan

Increasing numbers of people are choosing to take out a lease to get a new car rather than buy, according to an industry group.

The total value of leases increased by 55% in the past three months alone, the Finance and Leasing Association reported. Some car insurance policies automatically cover any car driven by the holder, while some lease agreements have insurance included.

Car-lease values exceeded £100 million in the second quarter of the year, compared with £66 million in the same quarter of 2010.

The association's Paul Harrison said: "While personal contract purchase and hire-purchase deals remain popular, increasing numbers of people are turning to leasing as an affordable finance option.

"If insurance and servicing are included it can make financial sense to lease, particularly for motorists who like to change their car every few years."