New car buyers are changing their cars more regularly than ever before due to the popularity of PCP finance deals, according to new data from automotive valuation firm Cap Hpi.
Some car manufacturers are reporting average returns of vehicles of 24 months along with a growing number of 18-month leases, while finance deals are predicted to be used more regularly on the used car market.
The new car market has seen a strong period of growth in recent years. Around 80% of new car sales are sold through finance deals, triggering a move in mentality from ‘ownership’ to ‘usership', according to Cap Hpi.
Philip Nothard, retail and consumer specialist at Cap Hpi, said that a few years ago having a car for five years or longer was not uncommon and that younger buyers are driving the shifting trend.
“Young buyers are the new consumers coming through,” Nothard said.
“The mentality is: the car does a job, it costs a certain amount each month, and if they can afford it they get it. There’s a lot more of that to come.”