The BBC has said that PCP has been the main innovation driving car sales since registration numbers started growing in 2012.
Quoting Toby Poston, director of communication and external relations at the British Vehicle Rental and Leasing Association (BVRLA), the Broadcaster said that the banking crisis had forced manufacturers to find new ways to stimulate car sales.
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It also said that the low interest rates from the Bank of England meant finance houses could provide finance cheaply.
While the site noted that PCP provided a ‘hassle free’ driving experience, thanks to factors such as servicing and maintenance often being included in the deal, it said "you have to pay for it."
The BBC said: "You can either buy the car outright with a final "balloon" payment, or you can hand the car back to the dealer.
"There is nothing very cheap about this though, and you can easily be paying £300, £400, or even more each month, depending on the starting cost of the car and the length of the deal."
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By GlobalDataIn concluding, the BBC quoted Garel Rhys, emeritus professor of motor industry economics at Cardiff Business School, says: "Leasing plans present a very good deal for both companies and buyers."
"It is very difficult to see what is wrong for the customer in this sort of thing."
