The shift from ownership to usership has drastically changed the automotive landscape. Vehicle-as-a-service models have created new revenue streams for OEMs and NSCs, as well as making it easier for consumers to afford higher spec vehicles by paying in monthly instalments. With a range of finance options now available to consumers, it is also a much more competitive market, especially within premium segments. Data-based decision making is crucial to inform pricing and product strategies to stay ahead in today’s crowded marketplace.
While many car buyers have a brand, model or spec in mind, affordability and convenience remain the deciding factors. However, with both direct to consumer and dealership options to consider, it’s harder than ever for OEMs and NSCs to benchmark their offering competitively. Consumers want a good deal and are prepared to shop around for it.
Understanding how consumers make purchasing decisions, and not just what they buy, is important in today’s market. With Monthly Payments, OEMs and NSCs can review and analyse local market insights and use real data to inform decisions around product positioning.
Knowing the direction the market – and your competitors – are heading in is vital for maintaining a competitive edge. Monthly Payments allows you to monitor existing trends and identify potential opportunities for growth.
One such trend is the rapid growth of EV’s amongst customers. While growth has been accelerated due to government legislation and upcoming bans on new ICE sales in 2030 or 2035, consumers are also more willing to consider and adopt new technology when the perceived risks sit with the finance provider and not with their savings. Manufacturers therefore will find it easier to sell new higher-tech, higher-cost electric vehicles, especially if available on finance.
Many factors drive a car finance purchase decision. For customers, paying monthly is appealing as spreading the cost typically allows them to purchase a more expensive or higher spec model than if they pay upfront. In addition, some may be drawn to finance options because they can trade their car in for a new model every two or three years.
For OEMs and NSCs, finance offers other benefits. With access to data on preferred contract lengths, they can position finance products appropriately. Plus, knowing when a customer is likely be looking to review or renew their vehicle contract means they can engage them accordingly – something not always possible with the traditional method of buying a car outright.
By fully understanding the customers’ perspective using insight and data from Monthly Payments, OEMs and NSCs can build and deliver a more competitive deal for the consumer.
Automotive finance is now a popular way to purchase vehicles. It offers a range of benefits for consumers, including making more expensive cars more accessible, and provides new growth opportunities for OEMs and NSCs.
By enabling you to see the automotive world through the eyes of consumers, Monthly Payments by JATO is the future of benchmarking vehicle finance offers. It delivers extensive, compliant, reliable, and timely data that allows you to compare vehicles the way your customers do, enabling OEMS and NSCs to shift their strategies to drive performance.
Find out more about our Monthly Payments proposition – https://info.jato.com/monthly-payments-jato