The majority of car buyers are looking to spend around £200 a month for their next car, according to Motors.co.uk.
The company recently launched a “search by monthly payment” tool on its website and the latest data shows that £200 is the sweet spot for 19% of customers.
Phill Jones, managing director of Motors.co.uk, said: “While some consumers are still interested in the headline price of their next car, a growing number are taking a lead from the technology companies and considering the monthly impact of changing vehicle on their disposable income.
“Indeed, with platforms like Spotify and Netflix changing the way in which consumers think about paying for products, we believe there is a clear opportunity for dealers to increase their promotional emphasis on monthly payment.”
More than half (53%) of consumers to date have searched for vehicles with a £0 deposit contribution, while one in ten (11%) were looking for a contribution of just £500. Almost a fifth (17%) of users were happy to contribute £1,000 as a deposit on their next vehicle.
Jones said: “It is still early days for the search by payment functionality, but the figures clearly show that there is strong demand from consumers looking to find the best car for their monthly budget. For dealers, the message is to provide choices at all ends of the financial spectrum. The data shows that deposits of up to £1,000 and monthly payments of up to £200 prove the most popular, but there is still a wide variation in individual customer requirements.”
The Motors.co.uk monthly payment search technology is powered by iVendi, which provides dealers with tools to control their rates and the ability to receive qualified finance applications.