The traditional landscape of vehicle ownership is undergoing a rapid transformation as an increasing number of buyers are gravitating towards monthly payment schemes. Recent studies indicate that in 2022, a staggering 60% of buyers opted for financing their cars. Moreover, an impressive 80% of these buyers revealed that the availability of monthly payment options would significantly enhance their likelihood of purchasing an electric vehicle (EV).
Fresh data from JATO Dynamics sheds light on the primary factors influencing customers’ preference for financing. Affordability emerged as the most crucial consideration for 31% of respondents who favored monthly installments over a substantial upfront payment. Additionally, 25% believed that financing would enable them to acquire a superior quality vehicle, while another 25% found leasing arrangements advantageous for budget management. The trend appears to be consistent beyond the borders of the United States, as a recent study commissioned by the UK government indicates that trade-in offers and finance options hold significance for consumers in that market as well.
JATO’s report discloses that global EV sales reached a remarkable 6.61 million units in 2022, and this figure is expected to experience significant growth in the coming years. The availability of financing solutions is just one of the factors that could entice more individuals to transition to zero-emission vehicles. According to the study, the primary reason for purchasing an EV is its good battery range, cited by 51% of respondents, closely followed by the convenience of recharging at 45%. Among those surveyed, 21% expressed their intention to purchase an EV within the next year, while an additional 27% indicated they were contemplating such a purchase.
Shared ownership models are also gaining traction, with 51% of consumers expressing interest in this concept for future vehicle ownership. The most significant motivating factor cited by participants was the potential for reduced costs, chosen by 50% of respondents. Access to higher-quality vehicles (34%) and lower prices (33%) also ranked high among the reasons to consider shared ownership. Interestingly, among those interested in shared ownership, 73% were found to reside in city centers, while only 19% lived in rural areas, underscoring the regional nuances in the adoption of car sharing initiatives.
