Industry faces ‘iphonification’
Consumers change their car more often than they change their mattress and bedding according to latest data produced by cap hpi.
In recent years, the length of time motorists own a car has plummeted, creating a world where consumers are likely to change their car more often than they change their mobile phone or their bedding.
Data produced by cap hpi has revealed that some car manufacturers now see average returns of vehicles in 24 months, and there is evidence of a growing number of 18-month leases in the market. Car manufacturers are managing volumes in the used market by varying contract lengths by model and remarketing channels.
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.’