Volvo Car Leasing enjoyed a record October with business up by more than two thirds compared to the same time last year.
The number of contracts signed in October this year was a staggering 68 per cent up on the same month in 2010. Whilst the majority of its business, 66 per cent, came from contract hire, an increasing proportion, 28 per cent, has been fuelled by the private motorists opting for personal contract hire.
The V60, S60 and XC60 proved to be the most popular vehicles which were leased in October with the V60 D3 R Design being the out and out favourite.
The colossal amount of business was the result of a joint effort from the 130-strong Volvo dealer network although a handful of sole dealers and dealer groups accounted for around 40 per cent of the month's business. Mill Garages, which operates six dealerships in the North East, accounted for about eight per cent of the total; Harratts which runs four businesses in Yorkshire were responsible for selling around 10 per cent of the month's contracts; the four-strong Helston Garages group consisting of Kastners in Exeter and Barnstaple, Yeovil Motor Company and Taunton Motor Company contributed seven per cent; whilst impressively two single-sites PV Dobson in Kendal, Cumbria, and Cecil and Larter in Bury St Edmunds, Suffolk, delivered seven and eight per cent of the total respectively.
Says Tony Grice, Volvo UK's training and field manager: "The results are hugely impressive and sales teams at all our dealerships have really embraced contract hire and private contract hire although the efforts from a fifth of our network are incredible and reflects a wider demand for rental packages among both consumers and business users."
In fact, Grice believes the rise in lease hire is indicative of budget-conscious private motorists who are watching every penny in the current climate and are attracted by the combination of a fixed monthly cost and a new car.
He adds: "A competitive rental figure that incorporates a maintenance package means we have a practically unbeatable value-for-money proposition. We're now seeing more customers opting for contract hire products than ever before."
"Volvo has always been the kind of car a motorist would feel happy investing in with a view to running it for some time, but attitudes are changing. We are seeing a mentality similar to that of paying a monthly rental for a phone and upgrading on a one-two year basis, filtering into other purchasing areas including motoring. As such, increasing numbers of people are opting for a fixed monthly payment which enables them to upgrade their vehicle every two or three years.
"This funding method is particularly attractive in the current climate because it makes budgeting easy. Private motorists have a new car they keep for two or three years so there are no MOT or road fund licensing costs and by including a maintenance package, the cost of routine servicing is also covered. What's more drivers are benefitting from driving a newer car with the latest technology which are cleaner and more fuel efficient than their older counterparts."
