Unable to secure loans to buy new cars, 60 percent of Greeks now – by choice or being forced into it – are turning to leasing the vehicles instead, also daunted by the high prices

The prohibitive costs have seen a big shift in obtaining cars, said Ta nea, reporting that 67 percent of consumer loans for vehicles are rejected and – unlike in the United States – buyers having to pay full sticker price as there’s no haggling.

The average age of leased vehicles is 2.9 years while the average age of privately owned vehicles is 17.3 years. Previous reports have highlighted that Greece has the oldest fleet of privately owned vehicles in Europe.

The paper said that another reason for the switch to short-term leases is due to the fact that there is no need for a downpayment, and lease payments are relatively low. Used cars up for lease are discounted even further.

Leasing also includes maintenance costs, insurance, and damages so that there aren’t any costly surprises, and there are also tax advantages and leases are available for as few as 30 days to up to a year, a new trend.