With the fall of mega giants in the banking and financial sectors, the resultant credit crunch has wiped out most businesses like the tsunami, and the car market has not been spared either. However, in these difficult times, car leasing seems to have stepped up as companies come up with lucrative and viable options for those who require a car.
Reluctant customers are not easily committing to major purchases and the car finance sector find that the lack of shoppers is diminishing their business rather drastically. But since car leasing requires a much lesser commitment level than the outright purchase of a car, customers find themselves leaning towards leasing a car rather than buying it.
While it is the premium section that is said to have the most residual value and thus be a more lucrative option for car leasing purposes, it is here that the credit crunch has hit the hardest. Sadly, the premium car brands market of the car finance sector is suffering this effect the most, with sales of Aston Martin, Jaguar and Land Rover dropping drastically. This does in turn mean that if you do require a premium brand vehicle they have never been such value. Interestingly though the saving grace comes in the form of the economy cars share in the market, which is on the rise.
It is this share that may save the car finance industry from the severe blow generated by the cash crunch. It goes to show beyond doubt that takers for personal contract hire is on the increase as PCP is no longer the one and only option in this sector.
With low amounts of cash to play with, prospects are not too eager to invest in any long term schemes. Car leasing companies state that the buyers prefer to hire a car for an extended period of time rather than an outright purchase.
What worsens the situation is the ‘alternative fuel' drive. Buyers want to wait and watch before selecting a vehicle to see if a greener option will be made available and therefore choose car leasing over an outright purchase.
Car leasing companies have come up with solutions to overcome the credit crunch, offering even better car leasing deals which benefits buyers. It is undoubtedly a great time to opt for car leasing offers. PCP, BCH, PCH and other forms of car leasing are being offered at great rates since car finance companies are looking to introduce methods to solve the clients' problems.
Most car finance companies are nevertheless keeping a high caution level when screening their clients. However, for those who do have a good track record, leasing a car is a great way to go ahead and drive out with the car of your dreams without the straining your budget.