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Drivers turning to low mileage car lease deals

Drivers turning to low mileage car lease deals
There are more cars on the road than ever before, but we’re driving them less, according to new research from Leasing.com.

The estimated average annual mileage per car in England has decreased as the number of cars per household has risen, falling 17% from around 9,200 miles in 2002 to 7,600 miles in 2018*. For petrol cars, the average mileage was just 6,600 miles in 2018.**

Meanwhile, consumer demand for lower annual mileage car agreements has increased dramatically in recent times too.

Leasing.com introduced the ability for its partners to advertise 5,000-mile per annum lease deals in May due to growing consumer demand, and they now account for 17% of all personal leasing enquiries.

5,000-mile per annum deals were the third-most popular choice among personal car lease customers on Leasing.com during August. 8,000-mile and 10,000-mile per annum deals remain the most commonly chosen leasing profile. Most 5,000-mile deals were specified with a low three-month initial rental, which typically will mean a lower upfront payment than a PCP or HP deal.

Annual mileage profiles as a percentage of all enquiries during August

5,000 miles: 17%

8,000 miles: 29%

10,000 miles: 34%

12,000 miles: 7%

15,000 miles or more: 13%

Paul Harrison, Head of Strategic Partnerships at Leasing.com, said: “In-market consumers always look to keep the costs of their next new car to a minimum and the introduction of annual 5,000 mileage deals allows them to strike the right balance between affordability and desirability, especially if it’s a second or third car in the household.

“The distance travelled by drivers has consistently fallen over the last two decades. For those who travel fewer miles than the national average, leasing is a fantastic funding choice because the lower the mileage, the higher the car’s residual value will be – a crucial factor when it comes to monthly lease rates.”

“However, all drivers should carefully consider their anticipated annual mileage. Excess mileage charges are often around 7p-8p per mile but can be higher. Going over your allocated mileage by 3,000 miles, for example, could cost you several hundred pounds in charges at the end of the contract.”

Leasing.com League Table
On the Leasing.com League Table of most popular vehicles for August, the Mercedes-Benz A-Class, leapfrogging the Range Rover Evoque. Attractive pricing on the Audi A4 saw it move up to fourth place behind the Mercedes-Benz E-Class.

The popularity of Tesla continued too, with the all-electric Model 3 trending itself into ninth place – ahead of the Nissan Qashqai. Meanwhile, the Volkswagen Golf, the most popular personal lease car of 2018, dropped out of the top ten completely.

Top 10 personal lease enquiries for August

Mercedes-Benz A-Class

Range Rover Evoque

Mercedes-Benz E-Class

Audi A4

Range Rover Velar

Mercedes-Benz GLA-Class

Mercedes-Benz C-Class

Volkswagen Tiguan

Tesla Model 3

Nissan Qashqai

Top ten personal lease enquiries on 5k mileage deals for August

Mercedes-Benz A-Class

Range Rover Evoque

Tesla Model 3

Mercedes-Benz E-Class

Range Rover Velar

Range Rover Sport

BMW 2 Series

Mercedes-Benz GLA-Class

Fiat 500

Vauxhall Grandland X

* The National Travel Survey: England 2018Table NTS0901

** RAC Foundation: Motoring FAQs.

*Article Source https://leasing.com/ /Newspress