For the second year in a row, the number of new cars sold in the UK hit an all-time high.
There were a record 2,692,786 new cars registered in 2016 – up 2.3% on 2015. Nearly 1.5 million were sold to fleets and businesses, with a further 1.2million being registered to consumers.
The BVRLA has welcomed the news, with BVRLA Chief Executive Gerry Keaney saying: “2016 was another great year for the automotive industry, with nearly 1.5million new cars registered to fleets and businesses. BVRLA members buy many of these vehicles, and while these sales will be classed as fleet registrations, they are often leased to consumers.”
Mr Keaney added “Personal contract hire (PCH) is an increasingly popular way for consumers to get behind the wheel of a new vehicle. BVRLA members are responsible for more than 1.4million vehicles on personal contracts, and the BVRLA has been representing the sector for 50 years.”
Leasing consists of an upfront payment followed by regular monthly payments over a fixed period of time. It is usually cheaper than financing a vehicle outright as the customer is effectively renting a car which belongs to the leasing company. At the end of the lease, the driver can simply hand the vehicle back and start a new contract.