The volume of cars under four years old on UK roads is at its lowest in 16 years, partly down to the extension of leasing deals, recent research has shown.
The study, from research firm Autofutura, has shown that 1-to-4-year-old cars now number 7.5 million, which the RAC has warned puts consumers in danger of paying more for older and longer mileage vehicles. Meanwhile, G3 Remarketing has attributed part of the ageing car parc to the effects on the leasing market during the economic downturn.
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Matt Dale, director of G3, said: "Terms have seen a downward trend and this is due to the slowly returning confidence within the wider economy. Looking back to three-four years ago when the country was locked into the recession, companies were reluctant to commit to renewing vehicle leases, preferring to extend existing agreements. With the reduction in term duration, G3 Remarketing predicts a direct correlation to the condition these vehicles will be returned in at the end of their contract."
Autofura’s figures estimate that the average deal term has dropped from 44 months in 2010, to 37 months in 2013.
G3 believes the trend is set to continue as the used car market becomes more buoyant after rising retail sales.
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By GlobalData
