Study: Drivers become more averse to long-term car finance

A third of British motorists (32 percent) state that they are far less likely to replace their existing car by committing to a long-term (three-year) lease than they were 12 months ago, an independent new study has revealed. Mobility provider SOGO researched attitudes towards personal financial commitments and car ownership. 

SOGO’s research findings also indicate that only 14 percent of drivers would be much more likely to commit to a long-term financial lease to fund their next vehicle than 12 months ago. 

37 percent of motorists stated they believe short-term leases are more beneficial because of the financial flexibility offered. However, 16 percent believed they wouldn’t benefit from a short-term lease on a new vehicle. 

Previous research conducted by SOGO revealed that barriers still remain when it comes to British consumers fully embracing electric cars, with one in 10 (12 percent) drivers considering switching to an electric car despite concerns over range and battery reliability.

Commenting on the research findings, Karl Howkins, managing director of SOGO, said:  “As the economy faces significant challenges, flexible leasing allows short-term demand to be met without the problems of a long-term commitment in an uncertain market. For businesses that rely on vehicle fleets, SOGO offers greater flexibility through monthly leasing for cars and LCVs. 

“Monthly leasing frees capital from the balance sheet that can be deployed elsewhere in the company to fund growth. While many managers may not yet be able to transition out of traditional lease models immediately, it’s useful to start thinking about the mix across fleets.”

SOGO’s research into leasing attitudes also highlighted:

• 35 percent agree that short-term leasing of a car allows them to embark on a variety of life experiences as it adapts to their needs.
• 30 percent said short-term leasing a car will speed up the process to net zero carbon by 2030, compared with 9 percent who don’t believe it will have an impact.
• 43 percent believe a short-term car lease grants freedom to not be tied to an older car that may require costly repairs as it gets older. 
• 1 in 5 motorists (21 percent) confessed to buying cars based on the latest model and technology. Men are more likely to choose their next car in this way compared with women (23 percent v 18 percent).
• 35 percent of 18-24-year-olds are more likely to select a car based on the latest model and technology compared with 11 percent of over 55s.
• 20 percent of car owners have stuck to the same brand of car since owning their first car (21 percent men v 18 percent women).
• 42 percent of motorists have only ever thought about changing/upgrading their car if there is a problem with it.
• Seeing friends/family having new cars act makes a quarter of motorists (24 percent) want to upgrade their cars too. There’s not much difference between men v women (25 percent v 26 percent).