There are many varying factors adding to the demand of the modern day lease. First, the prices of new vehicles continues to rise every year. An average price for a vehicle is now well over £28,000 to buy outright. For the majority, this makes new cars less affordable. Monthly payments, even with long loan terms, are higher than many people can afford.

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Second, car manufacturers and their dealers have fuelled the attraction for leasing by offering outstanding special lease deals with low monthly payments that customers couldn’t possibly expect to negotiate on their own. Payments are significantly below loan payments for the same vehicles, even with special 0% interest rate loans. These kinds of limited-time deals are now offered every month by nearly every car company. Before the recession, such deals are offered much less often. Although some deals are restricted to certain models and styles, companies such as BMW offer genuinely good lease deals on nearly every model in their product line, every month. See Best Car Deals for current special lease offers from car companies.

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Third, one of the largest segments of our modern consumer population is made up of millennials, those people who now in their mid-20s to mid-30s in age. Sometimes called Gen Y, they have different views about life, jobs, and money than their parents and grandparents. They tend to have fewer savings, more debt (often student loans), and tend to rent instead of buy their homes. Home ownership is not as important as it once was.

Millennials like to have new things, new styles, new technology, and spend more time on the move. However, they are also cost conscious and watch their budgets. Being able to have a brand new car every 2-4 years at the lowest monthly payment amount is important to them. This is why car leasing is especially popular for this rising segment of the population.