Third of drivers less likely to commit long-term car finance

A third of drivers (32%) say that they are far less likely to replace their existing car by committing to a long-term (three-year) lease than they were 12 months ago, an independent study has research by Mmobility provider Sogo has found.

The findings also indicate that only 14% of drivers would be much more likely to commit to a long-term financial lease to fund their next vehicle than 12 months ago.

Whilst 37% of motorists stated they believe short-term leases are more beneficial because of the financial flexibility offered. However, 16% believed they wouldn’t benefit from a short-term lease on a new vehicle.

Previous research conducted by Sogo revealed that barriers still remain when it comes consumers fully embracing electric cars, with one in 10 (12%) drivers considering switching to an electric car despite concerns over range and battery reliability.

Karl Howkins, Managing Director of Sogo, said: “As the economy faces significant challenges, flexible leasing allows short-term demand to be met without the problems of a long-term commitment in an uncertain market. For businesses that rely on vehicle fleets, SOGO offers greater flexibility through monthly leasing for cars and LCVs. 

Karl Howkins, managing director of SOGO, said “As the economy faces significant challenges, flexible leasing allows short-term demand to be met without the problems of a long-term commitment in an uncertain market. For businesses that rely on vehicle fleets, SOGO offers greater flexibility through monthly leasing for cars and LCVs.”

“Monthly leasing frees capital from the balance sheet that can be deployed elsewhere in the company to fund growth. While many managers may not yet be able to transition out of traditional lease models immediately, it’s useful to start thinking about the mix across fleets.”

“Analysis of recent car trends indicates that not everybody needs their car as much as they used to, especially with more people working remotely or from home becoming more commonplace in the workplace. Considering a short-term flexible lease offers a great alternative to longer leases. With the ban on petrol and diesel cars coming in 2030, a shorter lease deal on a new, environmentally friendly and cheap-to-run car offers huge appeal.”