Car finance critical in cost-of-living crisis
The automotive finance market has grown significantly over the last decade, with 60% having bought their cars on finance in 2022.
That’s according to JATO Dynamics’ latest consumer research, ‘Driving Decisions with Data: Global Automotive Consumer Finance Insights.’
A number of factors are prompting the shift away from traditional ownership models, with nearly a third (31%) citing affordability as the primary motivator for leasing a vehicle. This is followed by a quarter (25%) of people that believe buying a vehicle on finance allows them to get a better car, and the same number saying finance options are better for budgeting.
Consumers are also considering their finance options when it comes to pure electric and hybrid drivetrain systems. In fact, with 80% of respondents saying the option to pay monthly would make it more likely for them to choose an EV, financing options could have a clear role to play in the global drive to net zero.
Mike Bennett, product manager at JATO Dynamics, said: “The skyrocketing EV market opens a world of opportunities for OEMs and dealers. But with any major industry transformation, these opportunities don’t come without challenges. Alongside finance options, other factors – such as the reliability of EV charging – will play a significant role in the mass adoption as more consumers look to try EVs.”
