Recent analysis by Hippo Leasing* has revealed a growing number of older motorists are favouring car leasing over purchasing.
According to DVLA data, the over 60s make up a significant proportion of the UK’s driving population (approximately 11.7 million people) and this number is set to continue growing as the nation’s population ages.
In fact, since 2012 the number of over 60s with a full UK driving licence** has increased by 16.64 percent, equating to nearly 1.7 million more licence holders.
|Year||No. of UK drivers over 60||YoY % difference|
Surprisingly, DVLA data also shows there are currently nearly 300 people over the age of 100 who hold full UK driving licences. This figure has almost doubled from 162 people in 2012.
So, when it comes to finding a car, which do older drivers prefer – purchasing or leasing?
Hippo Leasing has also analysed internal enquiry data to uncover the demographics of car leasing, to see which age groups favour leasing instead of buying a car outright.
|Age Group||% of Enquiries||% of Enquiries||% of Enquiries||% Difference|
Interestingly, the results show leasing enquiries from the two oldest age groups – 55-64 and 65+ – have grown exponentially over the past three years, up 200 and 388 percent respectively.
This is in sharp comparison to the 18-24 age group which saw a drop of 12.05 percent in enquiries, suggesting young drivers prefer purchasing their first car.
Across all other age groups, leasing enquiries have grown steadily year-on-year, supporting the latest findings from the BVRLA that the personal car leasing sector is booming, up 14 percent in the past year alone.
Tom Preston, Managing Director of Hippo Leasing commented on the findings:
“By 2066, the ONS predicts the over 65s will make up over a quarter of the UK’s total population (20.4 million people)***. This represents a huge commercial opportunity for the motoring industry.
“It’s encouraging to see enquiries from the over 65s have grown at such a high rate YoY. There is no legal age limit on personal leasing contracts, so as long as a driver holds a full UK driving licence and passes the appropriate credit checks, a leasing agreement can offer a flexible, affordable and efficient way to drive.”