Motorists now change their car more often than they switch their mattress or even their mobile phone, suggests new research.
New research now suggests that Motorists change their car more often than they switch their mattress, or even their mobile phone.
Latest figures have revealed that the length of time motorists keep a car has plummeted from the expected five years to around two years, or less.
Widely trusted automotive experts, cap hpi, have produced their own data which shows that some car makers now see average returns of vehicles in just 24 months, and there is now evidence of a growing number of 18 month leases in the market.
According to specialist chiropractors, mattresses should be changed every seven or eight years to ensure a good and healthy night’s sleep, while mobile phone contracts are on average between 18 and 24 months.
Experts are now saying that car manufacturers are varying contract lengths by model and re-marketing channels in order to manage volumes in the used market.
Philip Nothard, retail and consumer specialist at cap hpi, 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.”
He said the growth of personal contract purchase (PCP) and other finance options is having a “profound” effect on the car industry, with Personal Contract Hire (PCH) also increasing, as motorists increasingly look towards the simpler idea of user-ship rather than ownership. They have estimated that around four out of five new car sales (80%) are now on finance.
Mr Nothard also added, that “Not so long ago it was fairly common for motorists to have their cars for a minimum of five years or longer, but that has now changed dramatically and dropped to just two years for millions of motorists.
“After buying a house, the car was usually the biggest outlay for most consumers, but now they are far more likely to change their car more often than their mattress.
“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 the future, so we’re going to see people changing their cars with increasing regularity.”