Buying an electric car? Not now
To Italian motorists the plug-in car continues to please little. This is certified (in addition to the sales figures for the first three months of the year with a share of around 3% of the total) byCompass Observatory on the car and motorbike sectorpublished on the occasion of theAutomotive Dealer Day which will take place in Verona from next Tuesday. The dossier, which summarizes the preferences of the Italians in terms of cars, explains that over 60% of those interviewed do not consider fully electric cars due to the price deemed excessive (51%), as well as the lack of charging stations.
The chapter on the hybrid cars: if he were to buy a car 70% of Italians would in fact be interested in buying of a’hybrid carwith the Gen Z and particularly enticed millennials.
The rental boom
In support of automotive sector consolidates the long-term rental, a solution growing also in Italy, which joins the al traditional consumption which in 2022 recorded almost 20 billion euros (+1.6% on 2021) of loans disbursed for the purchase of new cars and motorcycles. The Buy Now Pay Laterthe deferred payment deemed useful by dealers in the car world, especially for everything related to after-sales activities.
The numbers of long term rental in Italia they are constantly growing. According to the unrae data, they have been 302 thousand rental registrations long-term in 2022, up 19% on 2021, especially among private individuals. The contracts signed by private individuals reached 90 thousand (14.8% of the total) and in the first quarter of 2023 there was a further growth of 10% compared to the previous three months and of 8.5% compared to the first quarter of 2022, confirmation of the positive trend.
And the impact of the long-term rental on the progressive electrification of mobility has modest but positive results: for 1 out of 4 Italians this formula would make them want to choose an electric car (in particular the Gen Z ). Even more convinced i dealer: for about half of them, renting can guide the choice of those who have doubts about the technology and style of mobility of the e-car.
But what are the pros and cons of this formula? ? First, it should be emphasized that 6 out of 10 Italians know it, with peaks of 72% among millennials. Between advantages perceived, the lower incidence of maintenance costs, the lower initial costs compared to the purchase and the bureaucratic practicality stand out above all. In the view of the Italians, however, not really feeling their own vehicle does not help those who see in the car not only an economic but also an emotional investment.
“Long-term rental is a formula that appeals to young people, starting with millennials, who are less tied to the concept of car ownership – he says Nicholas de Cesarand, general manager of Compass Rent. – The possibility of reducing initial costs and not having to think about collateral costs such as road tax and insurance are starting to make inroads among Italians, so much so that 30% of those approaching a new vehicle take this solution into consideration”.
The car can be bought with loans and installments
Processing of Compass demonstrates once again how, without the consumer credit, the automotive sector would be heavily penalised. Of the 25 billion euros (+3.8% on 2021) by special purpose loans disbursed in 2022 through affiliates, the car and motorbike sector accounts for almost 80%. In all, in fact, 20 billion were disbursed, of which 13.1 billion for new cars (+1.5%), 5.9 billion for used cars and 790 million for motorcycles. If on the one hand there is an average decrease in the number of financed operations (-8.4% for new cars and -8.3% for used cars) on the other hand, the ticket medio: 17,830 (+10.8%) in the first case and €15,015 (+10.2%) in the second. A separate discussion for the two wheels, where both the number of operations (158 thousand, +5%) and the average amount €4,980, +4.5%).
The novelty of the last few months concerns the Buy Now Pay Later, a service also available for the car and motorbike sector: 54% of dealers have heard of it and 13% already offer it, plus another 7% who want to activate it in the coming months. As far as after-sales activities are concerned, about half of the interviewees evaluate it positively.
“Consumer credit is still confirmed as the financial instrument of excellence for car purchases even if the numbers tell us that there is room for always new formulas of extension – commented Luigi Pace, central marketing & innovation director of Compass. – This is the case of Buy Now Pay Later, central to our offer, in particular to support accessory and after-sales services, as demonstrated by the opinions of automotive dealers. We work every day to provide innovative payment solutions and create business opportunities that take into account consumer needs and market trends”.