An increasing number of motorists using motor finance are changing their cars before the end of their finance agreement, according to figures from Experian Automotive.
The motoring and car ownership information arm of the Experian credit reference agency has highlighted new cars are changing keeper on average seven months – 18 months for used cars – before the original finance term was due to end.
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Comparing these figures against those for 2007 and 2009, Andrew Ballard, principal consultant at Experian Automotive, said the firm had "noted a significant shift in how long motorists were keeping their cars in relation to their finance agreements".
In 2009, new cars changed registered keeper on average five months after the end of the agreement and used cars one month before the agreement was due to end. In 2007, new vehicles changed keeper 13 months after finance ended, seven months afterward for used vehicles.
Despite this diminishing length of ownership, the Experian analysis has also demonstrated longer-term agreements are still the most popular, with more than 80% of motorists opting for average car loan terms of longer than 26 months.
The percentage of those vehicles to have an early keeper change in 2009 was 35%, in 2007 it was 28% and in 2012 it was 54%.
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By GlobalDataFurther data and analysis from Experian Automotive will be published in the April issue of Motor Finance magazine.
richard.brown@timetric.com
