More people than ever before favour car finance over ownership 0

More-people-than-ever-before-favour-car-finance-over-ownershipMotorists are now favouring car financing over ownership in the wake of new tax legislation and Brexit negotiations.

A new study by Servicing Stop has found that while just 18% of people currently finance their cars, more than one third of motorists said they are more likely to finance their cars next time rather than rent or buy.

This shows a complete shift in the market the same month that dealerships across the UK have seen their profits plummet to an all-time low following the introduction of hefty road tax for newer vehicles and increasing insurance premiums.

When asked what they found most attractive about financing; overwhelmingly motorists said it was due to the fact that just a small amount of money is needed for a downpayment on a vehicle (39%), other reasons given included the ability to drive a newer or more expensive model for a monthly fee, receive lower insurance premiums when driving a newer model and the short-term commitment required by financing a car for a certain amount of time.

Motorists were also asked if there were any obstacles preventing them from owning their own car over renting or financing, half of which said they did not have enough money to afford a new or used vehicle; 39% of motorists said they may change their mind about the model of car which would stop them from buying; while more than 10% of motorists said high insurance premiums on new models put them off buying altogether.

CEO and founder of Servicing Stop, Oly Richmond, said: “These are uncertain times for everyone in the UK as the divorce between Britain and Europe becomes a reality. The automotive industry is strongly in favour of a trade agreement as companies are set to face imposed tariffs on imports and exports. The government are clamping down on motorists left, right and centre, with changes to road tax, increases in insurance premiums and tougher penalties for car owners caught not following the rules.

“I am in favour of anything that makes driving easy, convenient and affordable for UK motorists. If the future of driving lies in financing than so be it so long as it is benefitting British motorists.”

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