The way people purchase new vehicles continues to evolve. With a wide range of finance models available, consumers are spoilt for choice when it comes to finding the right purchasing method for them. More than half (51%) of car buyers within the EU5 agree that using finance gives them more options and makes it easier (57%) to buy the car they want.

Evolution of Vehicle Purchasing: The Impact of Finance Options - JATO

 

All data referenced is from JATO’s Consumer Research Report 2023. The survey was conducted among 2504 consumers who have either leased or purchased a car in the last year or are planning to in the next year in the UK, France, Spain, Germany and Italy. Click here to download the full report.

 

The reasons people choose finance varies with age. Over 55s are more likely to buy a car this way because they don’t have savings set aside or are unwilling to invest their saving in purchasing a new vehicle. Younger age groups, however, are focused on using finance to purchase cars they may not otherwise afford and improve their credit scores.

 

The monthly payment amount continues to be the most important consideration for consumers (75%) when buying a new vehicle on finance, which will not come as a surprise to OEMs and NSCs. With that in mind consumers are often keen to explore deals and incentive options, particularly on new vehicles that offer possibilities to negotiate specifications and finance options.

 

Consumer Priorities: The Importance of Monthly Payments in Vehicle Finance - JATO

 

A customer’s spec choices are often dependent on the list price of the vehicle, where overall costs sit in the customer’s budget, and, ultimately how those options influence the final monthly payment. Consumers tend to prioritise safety (43%) and tech (40%) over environmental friendliness (31%), performance (30%) and appearance (20%). Safety is also more of a concern to over 55s (54%) than 18-34-year-olds (36%).

 

Factors Influencing Customer Car Spec Choices and Budgeting - JATO

 

Finance data to drive your strategy forward

While analysing the manufacturer suggested retail price (MRSP) and sales volumes of competitor products can provide an indication of current market activity, actual monthly finance prices – or the figure consumers are most interest in – can be harder to identify.

 

OEMs and NSCs need extensive, reliable, and timely data that allows them to compare vehicles in the same way that their customers do.

 

JATO Monthly Payments enables OEMs and NSCs to have a full view of the market and tailor strategies to the changing demands and needs of consumers. The data provides an in-depth analysis of automotive finance – from deposits and interest rates to monthly instalments, incentive schemes and more.

 

It covers the top five European markets, 30+ leading OEM brands, 80+ models and 70+ finance datapoints, and supports benchmarking and analysing automotive finance offers. As vehicle finance continues to grow in popularity, having trusted insights can help with decision making and strategy.

 

Plus, Monthly Payments now extends to value analysis adapted specifically for the finance market.  Allowing product managers to accurately benchmark the value of their product vs competition based on a complete finance offer (as opposed to MSRP).

 

Explore how Monthly Payments can make a difference to your business decisions and empower more tailored strategies. Book a demo with one of our experts to learn more.