The current economic climate is causing more customers to lease or hire a car instead of buying one outright, according to the latest research by Askaprice.com.
In 2010, contract hire purchases overtook outright purchase options for the first time in three years as customers turned to finance options to drive a new car.
Leasing was the most popular form of enquiry at the car-quotation website last year, accounting for almost 36 per cent of overall enquiries.
For the previous two years, outright purchase enquiries have ruled the roost at Askaprice.com claiming 40.77 per cent of overall enquiries in 2008 and a massive 53.96 in 2009.
The dynamic changed last year however with outright purchase enquiries accounting for just 34.37 per cent of all enquiries – a fall of almost 20 per cent from 2009.
Leasing options – Personal Contract Hire (PCH) and Business Contract Hire (BCH) - have improved slightly on previous years and with over 35 per cent of overall enquiries is the most popular purchase option at Askaprice.com.
It is however finance options that have benefitted most from the demise of outright purchase -boosting its market share by more than 15 per cent.
Whilst finance options remain the least popular form of purchase at the car-buying website it has reduced the gap from outright purchase by nearly 40 per cent in 12 months.
The change in buying patterns is symptomatic of the current economic climate which has seen a change in the consumer who is less willing to part with large sums of money and instead prefers smaller monthly payments.