High percentage of Portuguese borrow to buy a new car

More than half the Portuguese consider asking for a loan in order to buy a new car long-term (52%), according to a Cetelem Observer study concerning the automobile market in Europe.

The study reveals that 44% are fond of “on-the-spot payment” while only 4% prefer a long-term lease.

The Italians and the Turks are the most optimistic regarding the preference for on-the-spot payment (52% and 59%, respectively). On the other hand, Italy (48%) and Turkey (41%) are not fond of loans or car rental while the British, with their reputation for credit, and the Belgians prefer loans (70%) and car rental (9%).

In addition, Germans (68%) do not see any downside in using loans or long term lease.

New options such as renting a brand new car (leasing) long term represent a more appealing and cheaper way to acquire a new car. Therefore, the study confirms that most families are not willing to spend a fortune on a brand new car as it requires a substantial initial outlay. The leasing option does not require an initial cash outlay and also allows people to purchase the rented vehicle at any given time.

Some families prefer leasing a car as it allows them to simply return a car and select a new model when the lease expires, allowing a consumer to drive a new vehicle every few years without worrying about the sale of the old vehicle.

According to Diogo Lopes Pereira, Marketing Director of Cetelem, for some families this is the only way to acquire a brand new car.

Economic and marketing analyses as well as forecasts for the Notebook Car 2013 (Caderno Automóvel 2013) were carried out in collaboration with research and consultancy firm BIPE (www.bipe.com).

The surveys were conducted by TNS Sofres, from May to June 2012, in Germany, Belgium, Spain, France, Italy, Portugal, the UK and Turkey. In total, 4,830 individuals were interviewed.