Leasing deals jump by 55%

More motorists are abandoning car ownership in favour of leasing, according to new figures.

The Finance and Leasing Association (FLA) revealed that the value of leases jumped by 55% in the past three months.

More than 100 million was accounted to drivers leasing cars in the second quarter of 2011, compared with just 66 million in the same period last year.

Paul Harrison, head of Motor Finance at the FLA said: 'While personal contract purchase and hire-purchase deals remain popular, increasing numbers of people are turning to leasing as an affordable finance option.

'If insurance and servicing are included, it can make financial sense to lease, particularly for motorists who like to change their car every few years.'

More contract hire and leasing deals