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New car buyers are turning to shorter lease lengths with less money upfront.
This, says Leasing.com, is down to Brexit and general new car market uncertainty.
Data shows that enquiries for 18-month lease deals with a one-month initial payment increased 190% year-on-year in March.
Paul Harrison, head of strategic partnerships at Leasing.com, said: “As uncertainty takes a bite out of consumer confidence, it appears more and more people are favouring shorter-term contracts with no large initial payment.
“These are likely to be consumers coming out of existing finance deals who want or need a new car, but do not want to commit to large initial payments or lengthy contracts in a very uncertain market.
“There is a clear demand for short-term flexibility, but ultimately the monthly price for this flexibility has to be right for consumer budgets.”
“Mercedes-Benz continues to shine thanks to a wide range of vehicles at extremely attractive monthly prices. The brand’s line-up is more varied than ever, and we expect Mercedes to do well throughout 2019.”
The new car market has also been affected by buyer uncertainty.
Close Brothers Motor Finance states in its latest report that 49% of drivers would opt for a used car next, which is up from 41% a year ago. 34% are considering a new car, which is a decrease of 8%.
Figures in the report were collected via a telephone survey of over 200 UK car dealers undertaken between November and December 2018, and on a consumer survey of over 2,000 UK drivers.
It found that Brexit is a significant factor in this change, with 48% of drivers saying that it had a negative impact on their plans to buy a car in the next three years.
One-third of these drivers said they were more likely to buy a used car or delay buying a car as a consequence.