Is the new-vehicle leasing market getting busier?
The move to “normality” has been a gradual one and while so many industries are still working on a limited basis, or remain in complete shutdown, the world of new cars is very much alive.
One of the main advantages for leasing brokers across the UK is that we are able to work online and remotely. Even though most of us did undergo some form of furlough/temporary cessation, the majority of us are now up and running at almost the same capacity as before.
Over the last 8 weeks, there has been a real demand from consumers for new vehicles – not something we expected when we think back to the doom and gloom in March!
The automotive model which exists in the UK has long-needed an overhaul. The traditional method of vehicle procurement is not sustainable compared to how other industries now operate – just ask AO, Amazon and the Hut Group if they are pleased to have broken the mould.
Cars and vans, are no different and the Covid-19 situation will almost certainly act as a catalyst for change. This is not to say that dealerships are dead; we actually think they do a tremendous job and we are privileged to work alongside some fantastic organisations who support us on a daily basis.
The fact is that investing 10’s of millions of pounds into bricks, glass and floor tiles is not a sage investment. With footfall to dealerships already on the decline, the new trepidation for social contact under Covid is only going to expediate this.
Moving forward, you will see smaller outlets with multi-brands/franchises. With the increasing volume of EVs available, it makes sense to offer more than one brand at any one location – thereby allowing customers to see, feel and experience the differed makes, models and engine types available to them.
This is not about removing the experience which a customer has with their dealership – it is just a case of changing that experience. This forward thinking dealer groups who recognise this, will almost certainly be successful.
In the meantime, the move to online purchasing/leasing decisions has seemingly increased. Some of the major high-traffic website like CarWow, Auto Trader and Leasing.com are reporting seismic increases in traffic and customers looking to make a purchasing decision.
There may be an argument that the ability spend money on holidays and other luxury goods in the high street/retail segment has resulted in more disposable income for cars/vans.
Perhaps customers just want an online experience now and there is a real recognition that mixing with other human-begins just isn’t yet safe? Or there is an acknowledgement that operating a new car on a usership-style agreement like contract hire is a better and more cost-certain way to operate a new car in comparison to a PCP or HP agreement. With EVs and other new forms of engines being available, the need to own is perhaps coming to an end in the UK?
On a side-note, for those customers use an MOT, you need to be aware of the changing rules following the Covid-19 lockdown. On the 29th June new rules were announced on MOT testing for light vehicles due to the unfolding COVID-19 situation.
Cars, vans and motorcycles due an MOT between 30th March – 31st July 2020 will automatically have their MOT certificate extended by 6 months. The extension also applies to these types of vehicles that are due their first MOT test in this timeframe.
MOT certificates will not be extended if the vehicles MOT expires on or after 1st August 2020.
Extensions are currently being applied in phases with those due an MOT in April / May being treated as a priority. Extended MOT dates are provided by DVSA (Driver and Vehicle Standards Agency) around 7 days prior to the original expiry date, in turn these will then update in Connect a few days later.
- How the 6 months extension works:
- Each vehicle will still have a valid MOT certificate for an extra 6 months
- Each vehicle can still be taxed
- Vehicle insurance will not be impacted
- Each vehicle record will be updated so the police can see there is a valid MOT in place
- Although MOT dates have been extended drivers must ensure their vehicle is safe to drive and kept in a road worthy condition throughout the extension period.
Further information about the extension referred to above can be found in the link below:
One of our existing customers, from Manchester, came to visit the team in their new vehicle – the Audi A6 which we organised during the lockdown period. Our team have been running some great Audi lease deals during lockdown. Just take a look at the following link for more info at – https://www.carlease.uk.com/deals/audi/a6
In terms of the car shown, the Audi A6 Diesel Saloon 40 TDI S Line 4Dr S Tronic [Tech Pack], this is based on the following configuration:
- Daytona grey Pearlescent paint
- Alcantara/leather – Black with rock grey contrast stitching + front sports seats with S embossed logo
- 19″ 5 twin spoke design contrasting grey partly polished alloy wheels
As standard the car includes rear view camera, LED Interior ambient lighting, cruise control, 19” alloys, 3-spoke perforated leather, alcantara/leather, Audi sound system, heat insulating glass, privacy glass, rain and light sensors.
ESC, S Line front and rear floor, mats, Bluetooth, smartphone interface, parking system with visual park assist and front/rear sensors, lane departure system, automatic stop/start system, 7” high resolution screen, electrically adjustable, heated and folding doors mirrors with LED indicators.
Auto dimming rear view mirror, DAB radio, S line badges and aesthetics, headlight washers, LED signature, matrix LED headlights, signature LED lights, 2 zone climate control, technology pack, 4-way electric lumbar support for driver/passenger.
Electrically adjustable front seats, heated front seats, keyless go and immobiliser/anti-theft alarm. In terms of additional options consider – comfort and sounds pack, space saver wheel and 20” alloys.
On the technical-side company car and business users can note the P11d at £44,950.00 and CO2 at 146g/km. The 1968CC 7 speed auto engine delivers 62.8 combined MPG, 204ps and 0-62 times of 8.1 seconds. The service intervals are set at every 12 months or 9.000 miles whichever lands sooner.
So would the A6 be your choice? Or would the Mercedes E-Class or BMW 5 Series be your leasing option?
Check out our latest Audi A6 offers