In light of the UK government's recent decision to delay the ban on petrol and diesel cars to 2035, the automotive landscape is undergoing a significant shift. This development has made leasing vehicles more attractive than ever, offering a flexible and cost-effective alternative to outright ownership. As the nation grapples with the complexities of transitioning to a greener future, leasing presents a viable option for those looking to navigate the changing tides without committing to a long-term investment. This article delves into the reasons behind the heightened appeal of car leasing in the current climate.
What is the Petrol Ban Delay?
Initially, the UK government had ambitious plans to phase out petrol and diesel cars by 2030. However, due to various logistical and economic challenges, this timeline has been extended by 5 years to 2035. This delay has been met with mixed reactions. On one hand, it gives the automotive industry more time to adapt; on the other, it poses serious questions about the UK's commitment to reducing greenhouse gas emissions, of which nearly 25% come from vehicles.
Nearly two-thirds of UK drivers (60.1%) are in favour of the UK Government's decision to delay the ban. Of those who support the delay, 43.3% cited a lack of charging infrastructure as the main reason. Conversely, 22.3% disagreed with the delay, with 63% stating that the UK needs to maintain momentum on the EV transition as part of our Net Zero commitments.
The Immediate Benefits of Leasing
Leasing a car has always had its financial perks, but with the delay in the petrol ban, these benefits are magnified. The average initial payment for leasing a car is much lower than you'd spend on purchasing a new petrol car. This immediate financial relief is particularly beneficial in uncertain economic times, making leasing an increasingly attractive option for many.
Leasing has skyrocketed in popularity in the UK, with 6.5 million vehicles now leased. One of the key advantages of leasing is that it often allows you to drive a better car than you'd expect. Initial payments and ongoing instalments are often lower compared to buying, which helps protect your savings
Owning a car comes with the inevitable downside of depreciation. The most significant decline in value typically happens within the first year, after which the rate of depreciation tends to lessen. On average, your car is likely to lose between 15% and 35% of its initial value during the first year. By the end of the third year, you can expect its value to have halved.
Leasing for a Greener Future
The environmental impact of petrol cars is well-documented. Switching to an electric vehicle can reduce your carbon footprint by 17 – 30% vs driving a petrol or diesel car. While the delayed petrol ban may seem like a setback for environmental goals, it actually provides a longer window for motorists to make the transition to electric vehicles. Leasing offers the flexibility to switch to an electric or hybrid vehicle at the end of your contract, making it easier to adapt to greener technologies as they become more accessible.
If you're tempted to go electric, leasing puts a whole host of plug-in vehicles at your fingertips. Road tax, breakdown cover, and MOT are often included in the leasing package, providing additional value.
Flexible Leasing in an Evolving Market
The world of automotive technology is ever-evolving. With leasing, you have the freedom to adapt to these changes without the financial burden of owning a depreciating asset. Currently, 37% of leased cars in the UK are electric or hybrid, a figure that is expected to rise in the coming years. Leasing contracts often last for 2-4 years, giving you the flexibility to switch to a more eco-friendly vehicle as the market evolves. We even offer a 12 month leasing option for extra flexibility.
The Bigger Picture: What This Means for the UK
The delay in the petrol ban is more than just an extension of a deadline; it's a reflection of the complexities involved in transitioning to a greener future. While it may be tempting to view this delay as a setback, it's also an opportunity for both individuals and the automotive industry to better prepare for the inevitable shift towards more sustainable modes of transport.
The delay in the UK's petrol ban has inadvertently made car leasing an even more attractive proposition. With its myriad financial and environmental benefits, leasing offers a balanced and adaptable approach to car ownership. As we navigate the complexities of transitioning to a greener future, leasing stands as a beacon of financial prudence and environmental responsibility.