Research has shown that new and used car buyers are more inclined to finance than cash purchases due to the current cost-of-living crisis.
What Car? We surveyed 1,060 buyers in the market and found that 25% of them (25.8%) felt that the crisis had influenced their decision. This helped spread out the costs. 74.2 percent were expecting to purchase via finance.
Finance buyers are most likely to purchase personal contract purchase or hire purchase plans. Nearly two-thirds (63.4%) of finance buyers purchase these plans, with the remainder undecided.
9.5% of planned purchases were made through personal contract hire or bank loans
The survey respondents indicated that 34.7 percent of them were interested in buying within the next four weeks, and 24.3 percent had plans to purchase within the next one to three months.
Nearly a fifth (19.8 percent) of all buyers wanted to purchase a fully-electric vehicle.
Steve Huntingford, editor of What Car? said that the cost-of-living crisis clearly influences buying decisions. It is already affecting whether people choose to buy with cash or finance.
“Finance allows you to spread the cost of your purchase over several months. Depending on the agreement, buyers can hand back the car at the end and swap for another model. This increases flexibility and reduces commitments.