New car ownership is in decline as consumers continue to turn their back on hire purchase in favour of personal leasing, according to a report from new car marketplace ContractHireAndLeasing.com.
In its Personal Leasing Report 2017: Growth in an uncertain market market, the marketplace found that the value of hire purchase agreements fell 9.8% in the 12 months to November 2017.
Personal contract hire (PCH), commonly referred to as leasing, grew 12.7% over the same period meaning it overtook hire purchase (HP) as the second-most popular form of new car finance with a market share of 9.2% in 2017*. HP’s market share declined to 8%.
Personal contract purchase (PCP) remained the leading consumer new car funding method at the point of sale.
Other findings in the report included:
• One-month advance rentals are on...