Consumers are now looking to replace their new car within 24 months on average, according to the latest research conducted by Cap HPI.
The group found that many car manufacturers are now seeing average returns of vehicles bought new in 24 months, while there is also evidence of a rising number of 18 month leases in the market.
In the used market, car manufacturers are managing volumes by varying the lengths of contracts by model and remarketing channels.
Cap HPI retail and consumer specialist, Philip Nothard, commented: What we are seeing is the âiphonificationâ of the car industry as consumers increasingly pay to drive rather than pay to own their vehicles.
Itâs the same model as the mobile phone industry where people are comfortable paying a monthly fee â only they are now doing this with their vehicles as well as their mobiles.
Personal Contract Purchase (PCP) growth and other finance options are having significant effects on the motor industry and we are now seeing consumers change their motor vehicles more frequently than household objects such as mobile devices and even bedding.
Also on the rise is Personal Contract Hire (PCH) as consumers continue the trend towards âusershipâ rather than ownership.
Cap HPI has also estimated that about 80% of new car sales are done on finance rather than being bought out right.
The group said that it was not too long ago that motorists would often keep their cars for around five years, but now they are much more likely to change their car more often than their mattress.
They added that consumer demand is still strong in the used car market, with lots of used bargains there for the taking.
They continued: As PCP becomes more popular and accessible in the used market, motor dealers expect its use to double in the future so weâre going to see people changing their cars with increasing regularity.
