THE DOMINANCE of finance deals, leasing and subscription services will be the death of car ownership.
A whopping 88 per cent of all new cars bought on finance by Brits last year, and 30 per cent of all used cars.
A comprehensive study by car marketplace site Auto Trader concluded that car ownership will completely die out within the next decade.
It believes that ‘usership’ is the way forward for the industry instead of ownership, with 40 per cent of all used car sales expected to be bought through finance in the next five years alone.
Almost every single Brit surveyed – out of 13,500 consumers – who bought a car on finance believed that they ‘owned’ the motor. This alone shows the cosmic shift in attitudes towards buying a car.
And although 80 per cent said they want exclusive access to a car, over two thirds think that Brexit will increase the cost of buying one outright.
Nathan Coe, Auto Trader’s Chief Financial and Operating Officer, said: “The evolving concept of ownership and the growing spectrum of access models represent one of, if not the most, dramatic shifts in the retail landscape.
“It also marks one of the biggest opportunities for retailers and manufacturers.
“Rather than relying on just traditional sales, retailers will need to facilitate the supply of both new and used cars to service providers, as well as providing new types of flexible aftersales, logistics and infrastructure services that will be required to operate these new models.”
Mark Forton, Volkswagen Director of Mobility Services, added: “Market trends show us that our customers are moving towards usership rather than ownership.
“There are many factors to this, in recent years it has been the increase in finance products being used to purchase or hire vehicles rather than buying them outright.
“The next step of this is customers wanting use of a vehicle for a shorter period of time, or use of multiple vehicles, much like a subscription service.
“Therefore, the need for the retailers to be a part of this is essential as it’ll provide access to customers in the locations that are easy for them.”