A September 2023 survey of more than 2,500 European car buyers conducted by market researcher Jato Dynamics found that 48% of respondents were more likely to consider financing a vehicle than 12 months previously. Among the key benefits cited were access to better quality vehicles (56%) and a wider variety of options (51%).
Importantly, 49% also stated that they would not have been able to make their desired car purchase without finance options. This could be linked with recent surges in electric vehicle (EV) adoption on the continent—battery EV sales rose 54.7% year-on-year in July 2023, according to Investopedia. The current average cost of an EV is €56,000 (US$60,000), double the price of the average internal combustion engine (ICE) passenger car.
Finance, then, could become an integral component of how customers experience EVs and build relationships with automakers. In a panel discussion with Automotive World, Huw Medcraft, Head of Solutions at Jato, and Ted Chiu, Senior Business and Finance Manager at BYD Europe, outlined how changes in customer behaviour and preferences could affect automotive retail in the region.
