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The challenge for us is to promote the acquisition benefits of short term car leasing to private individuals

Analysis by leasing specialists Cars on Demand suggests that new car sales will be increasingly supported by business short term car leasing.

Car fleet acquisition by businesses is a strong part of the motor trade for fleet sizes ranging from 5 cars up to thousands of units. Due to cost base constraints and general economic toughness, short term car leasing is now a popular financing method for many UK organisations. Online Marketing Manager Duncan Colman explained: “Typically, two thirds of new car leasing sales are from businesses. The challenge for us is to promote the acquisition benefits of short term car leasing to private individuals to maximise our business potential in the other third of the marketplace. We are coming across a new wave of business start-ups, freelancers and sub-contractors that might have historically counted as private individuals taking up short term car leasing as a flexible, business savvy acquisition method. As the VAT is claimable against taxable profits and you can get 1, 3 or 6 month lease it really does make sense in these tough trading conditions.”

Fleet contract hire and leasing trends were also highlighted by the Society of Motor Manufacturers and Traders (SMMT). Chief Executive of the SMMT Paul Everitt stated: “Robust demand in the fleet sector helped to bolster weaker private demand. While the coming months remain challenging, performance in the second half of 2011 is expected to keep the market on course to reach around 1.93m units.”
UK new car sales continue to slow for the 13th consecutive month with 131,634 new car units registered in July 2011. Car analysts have suggested that this fall of 3.5% is largely due to the scrappage scheme coming to an end, high fuel prices, inflation and lower household income. The UK scrappage scheme had a pronounced impact on the first half of 2010 which UK dealers are dying to see reinstated to help resuscitate demand.

Interestingly, diesel car sales were within 35 units of last July’s sales total and now accounts for 50% of all new car registrations in the UK. The Vauxhall Insignia was the top selling diesel on the road, just ahead of the VW Golf.

New car forecasts for 2011 targeted a 5% fall in registrations year on year but industry experts are concerned that this could worsen due to the first 7 months of the year. However, July is traditionally a slow month and all eyes will be on the new car sales volumes this September with the plate change.

Duncan Colman
Spike Digital
07738 874 540

This press release was distributed by ResponseSource Press Release Wire on behalf of Spike Digital in the following categories: Motoring, Business & Finance, for more information visit