Personal new car leasing is growing strongly in the UK and will underpin further sector growth in 2022.
UK car leasing comparison website Leasing.com is forecasting a significant increase in new vehicle sales from its users in 2022, despite the ongoing shortages and disruptions to deliveries.
The personal new car leasing sector grew by 28% in the UK in the 12 months between November 2020 and November 2021, according to figures from the Finance and Leasing Association (FLA), to a total value of £2.33bn. Leasing.com estimates that it is responsible for almost half of this figure.
During 2021, new car enquiries handled via the site are estimated to have been responsible for 31,217 sales last year, up by 29%. With the average lease car price around £35,010, this would amount to £1.09bn worth of sales in 2021.
Leasing.com is forecasting a 50% growth in enquires in 2022, which would see the total value rise to £1.64bn by the end of 2022.
The numbers make for positive reading, especially considering that recent Society of Motor Manufacturers and Traders (SMMT) data shows that 2021 new car registrations were still down 28.7% on pre-covid levels and up only 1% up on 2020.
Dave Timmis, Leasing.com’s Managing Director, is upbeat on future prospects: “2021 was a tough year, for both manufacturers, dealers and brokers, with shortages that almost stalled global production and saw consumers unwilling to spend. Even though overall new car sales remained relatively stagnant (at 1%) the leasing sector continued to grow, as more consumers were persuaded of the benefits of moving away from PCP and HP.
“We’re investing heavily in marketing this year and expect significant growth, which will benefit our valued advertising partners and keep driving the growth of the whole sector.”
“Much of this marketing will be focused on the ever-growing electric vehicle (EV) market. In 2021, Leasing.com’s EV sales grew 106%, outperforming diesel by 75%. This increase meant EV’s accounted for £416m worth of leasing transactions, with more expected in 2022.”