The death knell for car ownership

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KEY CHANGE: The nature of car purchasing and ownership is evolving. Credit: Shutterstock

THE growing dominance of finance deals, leasing and subscription services could well sound the death knell for car ownership.

A huge 88 per cent of all new cars were bought on finance in Britain last year, and 30 per cent of all used cars.

And a detailed study by car marketplace site Auto Trader concluded that car ownership will completely die out within the next decade.

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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 Briton surveyed, out of 13,500 consumers who bought a car on finance believed that they “owned” the motor.

This alone reflects the shift in attitudes in buying a car, and over two thirds think that Brexit will increase the cost of buying one outright.

The preference for usership over ownership represents one of the most dramatic shifts in the retail landscape, with new types of flexible aftersales, logistics and infrastructure services.

Mark Forton, Volkswagen Director of Mobility Services, said:

“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 will provide access to customers in the locations that are easy for them.”

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