The cost of buying a car has fallen by 240% since 1959, according to data from MINI Financial Services.
The data, combined with figures from the Office for National Statistics and Auto Trader, shows that buying a car has become more affordable in the UK. On average the retail price of a car has fallen from 300% of the average annual UK household disposable income to less than two thirds of that today.
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How people buy cars has also changed in that time. Now, more than half of consumers consider the price of a car as a monthly cost, rather than the full retail price. This is due to products such as personal contract purchase (PCP) – which now accounts for around 80% of all new MINI sales. This is particularly suitable for the 57 per cent of UK motorists who want to keep their current vehicle for just three years.
Phil Kerry, sales and marketing director of BMW Group Financial Services, said: “Over the past 60 years, how we buy and finance MINIs has evolved just as much as the cars themselves. The industry has been successful in responding to the changing needs such as creating greater flexibility in purchasing options. But the future MINI driver will increasingly buy and finance online, use subscription services, or hire their car.
“The challenge now lies in how we will respond to consumer behaviour as definitions of ownership change further. We know the car showroom and retailer will still be central to the MINI customer journey – but as consumer expectations and attitudes change, automotive firms must adapt to their needs.”
In the next decade, car ownership will still be essential for 80% of UK motorists, while 10% said they would opt to use a car subscription service. More interestingly, seven in 10 consumers said they would buy the car via a finance package online.
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By GlobalDataIan Plummer, commercial director at Auto Trader, said: “Our latest research shows that people are more open to buying a car online if using a finance agreement because it’s considered less risky. In fact nearly half would consider buying a new car online without seeing it in person.
“Car financing options have boosted car buying in the last few years and they will continue to give consumers more transparency and flexibility when buying their next car for years to come.”
