Consumers change cars more often than mattresses and mobile phones, according to automotive data company cap hpi.
Research the company conducted showed that car leases now average 24 months, with 18 month leases on the rise. In comparison, individuals are advised to change mattresses every 7 or 8 years, and mobile phone contracts average 18-24 months.
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According to the latest Finance & Leasing Association data, almost 85% of all new cars were bought on finance over the past 12 months.
Philip Nothard, Black Book editor, consumer and retail, said: “What we are seeing is the ‘iphonification’ of the car industry as consumers increasingly pay to drive rather than pay to own their vehicles.
“It’s the same model as the mobile phone industry where people are comfortable paying a monthly fee – only they are now doing this with their vehicles as well as their mobiles.”
Cap hpi suggested that the growth of PCP and the increasing availability of other payment options have made it easier for consumers to change cars more often.
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By GlobalDataThe rise of personal contract hire (PCH) has shown an increasing turn towards usership, away from typical notions of ownership, according to cap hpi.
Nothard continued: “Consumer demand remains strong in the used car market and there are lots of used bargains waiting to be snapped up. As PCP becomes more popular and accessible in the used market, motor dealers expect its use to double in future so we are going to see people changing their cars with increasing regularity.”
