Fleet car sales, which lead to the majority of car leasing deals in the UK, are driving and stabilising the UK car market during the recovery from the economic crisis.

The Society of Motoring Manufacturers and Traders (SMMT) has revealed that sales and new car registrations in the UK are slowly returning to pre-recession levels and that is being driven by Fleet and Business registrations.

Fleet and Business registrations is the leading source of car leasing in the UK and over the past five years it has been the one, unwavering source of new car registrations in the UK.

Whilst private registrations have fluctuated year on year, fleet and business registrations have been more stable and SMMT is predicting improvements in the sector in 2011 thanks to car leasing.

According to SMMT predictions Fleet and Business registrations will improve by 0.5 per cent on 2010 levels whilst private registrations and the market as a whole will fall by 11 and five per cent respectively.

Car leasing is one of the major reasons for Fleet and Business registrations stability during the economic downturn.

Whilst private buyers have been more inclined to keep hold of their money or have been swayed by the scrappage scheme, company car users, who use car leasing agreements to finance their cars, are not faced with the same issue.

Car leasing essentially refers to a number of different finance arrangements for both private and company car users. It has maintained its popularity because a new car is paid for in monthly instalments rather than a large lump sum payment.

With the scrappage schemes influence and the recession estimated to affect the UK market place for at least the rest of 2011, car leasing appears to be the only shining light for the foreseeable future.

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