British drivers are become more averse to long-term car finance, shifting their preference instead to more flexible leasing.

Karl Howkins, managing director of Sogo

A third of British motorists (32%) say they’re far less likely to replace their existing car by committing to a long-term (three-year) lease than they were 12 months ago, according to research by mobility specialist Sogo.

Only 14% of drivers would be much more likely to commit to a long-term financial lease to fund their next vehicle than 12 months ago.

The research, conducted to find out attitudes towards personal financial commitments and car ownership, also saw more than a third (37%) of motorists state they believe short-term leases are more beneficial because of the financial flexibility offered. Four in 10 (43%) believe a short-term car lease grants freedom to not be tied to an older car that may require costly repairs as it gets older. But 16% thought they wouldn’t benefit from a short-term lease on a new vehicle.

Such significant shifts in vehicle use and ownership are reflected in Sogo’s business model, which provides leases from as little as four weeks. This means drivers can hit the road in a new vehicle every month if they wish – something that would suit the 35% of survey respondents who said short-term leasing of a car allows them to embark on a variety of life experiences as it adapts to their needs.

Moreover, short-term leasing can help with the EV shift – in fact, the company thinks it will be essential to the mass adoption of electric vehicles before 2030, when all new cars and vans powered wholly by petrol and diesel will be banned.

This is borne out by the 30% of drivers in the survey who said short-term leasing a car will speed up the process to net zero carbon by 2030, compared with 9% who don’t believe it will have an impact.

Previous research conducted by Sogo revealed that barriers still remain when it comes to British consumers fully embracing electric cars, with only one in 10 (12%) drivers considering switching to an electric car, as concerns over range and battery reliability continue to hamper interest.

Flexible leasing can also help fleets meet short-term vehicle requirements and negates the need for long-term commitments.

Karl Howkins, managing director of Sogo, said: “As the economy faces significant challenges, flexible leasing allows short-term demand to be met without the problems of a long-term commitment in an uncertain market. For businesses that rely on vehicle fleets, Sogo offers greater flexibility through monthly leasing for cars and LCVs.

“Monthly leasing frees capital from the balance sheet that can be deployed elsewhere in the company to fund growth. While many managers may not yet be able to transition out of traditional lease models immediately, it’s useful to start thinking about the mix across fleets.”

Sogo’s research also highlighted:

• One in five motorists (21%) confessed to buying cars based on the latest model and technology. Men are more likely to choose their next car in this way compared with women (23% v 18%).
• 35% of 18-24-year-olds are more likely to select a car based on the latest model and technology compared with 11% of over 55s.
• 20% of car owners have stuck to the same brand of car since owning their first car (21% men v 18% women).
• 42% of motorists I have only ever thought about changing/upgrading their car if there is a problem with it.
• Seeing friends/family having new cars act makes a quarter of motorists (24%) want to upgrade their cars too. There’s not much difference between men vs. women (25% v 26%).