Thinking of leasing a car or van for your business in 2019? Here are the top trends to watch
Posted by: electime 25th January 2019
By Tom Preston, Managing Director, Hippo Leasing
If you’re looking to replace or upgrade your business car or van this year – or indeed start from scratch – leasing could be the right option for you.
The number one consideration when choosing the right leasing agreement is to consider what’s best for your business needs and budget. However, it’s also important to be in the know when it comes to the latest trends shaping the leasing market to help you get the best deal.
Here are the top trends to watch if you’re thinking of leasing a vehicle for your business in 2019…
Netflix for vehicles?
You may have seen in the press recently talk of “subscription cars” based on the popular Netflix model where you pay a set monthly fee for a service.
New subscription services are popping up online, offering the option to pay a set monthly subscription fee which includes insurance, maintenance, road tax and many other motoring costs. You may have seen companies like these advertising online and through social media.
This is certainly a modern concept of vehicle ownership, making things simpler and more flexible. However, subscriptions don’t necessarily mean you’re getting the best price for each component being offered as part of the monthly fee.
It may pay off if you’re looking for a quick and easy way to have access to a car or van for a few months but for longer periods it’s worth exploring how leasing compares on cost.
Going green
You may or may not be aware that last year the UK Government set out its aim for at least fifty percent of new cars on the road to be ultra-low emission by 2030 and to stop the sale of new petrol and diesel vehicles completely by 2040.
While there are a few years to go until then, it’s worth considering when picking your next car or van. One reason being is that car tax is set to increase (again) in April, hitting diesel drivers the hardest.
In April 2018 alone, car tax rates soared for diesel vehicle which saw prices rise between £20 and £500 a year. While, electric cars which produce 0g/km of CO2 emissions and cost less than £40,000 aren’t charged any tax.
As electric vehicles (EV) become more popular, the infrastructure needed such as public charging points will improve, there will be more choice and they’ll become more affordable too.
With EV vehicles depreciating quicker than their traditional counterparts, leasing customers avoid this pitfall and are able to keep up with the fast-moving EV technology market by having the option to regularly upgrade their model.
It also signals to your customers you’re a responsible company which is making an effort to reduce its carbon footprint.
Used car leasing
With uncertain political times ahead for the UK, many businesses are hesitant to make large purchases. As such, there’s a growing and competitive market for used-car and van leasing contracts which are often a more affordable alternative to buying or leasing a new vehicle.
The choice of model, colour and spec may be more limited than if you were choosing a new car or van, used vehicles are typically cheaper to lease and will likely have cheaper insurance options, making them an attractive offer.
Second hand no longer means second best. With increased durability, modern cars with a few years under their belts are usually as good as new.
Click and collect
In the age of “click and collect”, we’re used to getting what we want extremely quickly. So why shouldn’t cars and vans be available to lease instantly online too? Leasing companies are waking up to this growing demand and now offer instant orders with same day collection or quick delivery options, often under 48 hours.
Over the next twelve months, in-stock ranges will increase and leasing companies will slash delivery times even further to keep competitive.
Getting your new set of wheels should be hassle-free and fast, so check the pick-up and delivery conditions being offered to you before you sign on the dotted line.
