In recent years there has been a noticeable shift in the way young adults approach car ownership.
Recent research conducted by technology-enabled sustainable energy company GRIDSERVE, revealed that over two-thirds (69%) of 18-24-year-olds want to lease their next car.
So what is leading to the rising trend of young individuals choosing to lease new cars?
Affordability and Lower Monthly Costs
Leasing a car often requires a lower upfront payment compared to purchasing, making it more accessible for young people with limited savings. Additionally, monthly lease payments are typically more affordable than loan repayments, enabling budget-conscious individuals to drive a brand-new vehicle without breaking the bank.
New Car, New Tech
The allure of the latest automotive technology is undeniable. Leasing allows young drivers to experience the cutting-edge features and advancements that come with new cars, from state-of-the-art infotainment systems to advanced safety features. This is especially appealing to a tech-savvy generation that values connectivity and innovation.
Avoiding Long-Term Commitments
Young adults often find themselves in transitional phases—whether it's moving for further education, starting a new job, or exploring different living arrangements. Leasing provides the flexibility to adapt to changing circumstances without the burden of a long-term financial commitment. At the end of the lease term, individuals can easily switch to a new model or explore other mobility options.
Lower Financial Commitment
Unlike Personal Contract Purchase (PCP) agreements, leasing doesn't involve the eventual decision to purchase the car. This reduces the long-term financial commitment, allowing young individuals to focus on short-term affordability and flexibility.
Fixed Monthly Costs
Leasing comes with fixed monthly payments, simplifying budgeting for young drivers. Unlike the potential variable costs associated with ownership or PCP agreements, lease payments remain consistent throughout the contract period.
No Depreciation Worries
Vehicle depreciation can be a significant concern for those considering ownership. Leasing eliminates the stress of resale value, as the individual simply returns the car at the end of the lease term. This shields young drivers from the uncertainties of the used car market.
Maintenance and Warranty Benefits
Many leasing agreements include maintenance packages, and new cars typically come with manufacturer warranties. This means that young drivers can enjoy a hassle-free driving experience without the unexpected costs of repairs or servicing.
Eco-Friendly Choices
With a global push towards sustainability, leasing provides an opportunity for young drivers to regularly upgrade to more fuel-efficient or electric vehicles as technology advances. This supports eco-conscious decisions without the long-term commitment of owning a single car.
Reduced Environmental Impact
Leased vehicles are generally newer and come with modern, cleaner engines. This contributes to lower emissions and aligns with the environmentally conscious mindset of the younger generation.
At Leasing Options, we think the increasing trend of young drivers opting for car leasing is not just a passing fad; it reflects a shift in priorities and values. Affordability, flexibility, and the allure of cutting-edge technology are driving factors in this choice.
We have pulled together a range of guides that can help younger drivers make an informed choice so check them out here, and if you need any further help, please get in touch with one of our team.
