As 2023 draws to a close, Close Brothers Motor Finance reflects on the most popular cars to finance over the course of the year.
Although the government announced £2bn of funding for the Automotive Industry to relieve the strain on manufacturers and customers, dealers and drivers continue to grapple with increased costs of supply and maintenance. 70% of car dealers stated customers are looking to buy cheaper models, and 69% are increasingly turning to second hand cars, according to research from Close Brothers Motor Finance.
The list of most financed cars shows that buyers are opting for smaller vehicles which is demonstrated in the Ford Fiesta and Volkswagen Golf’s place in the top 3 most financed cars for 2 years in a row.
The list shows consumers are prepared to sacrifice newer, bigger models for more economical options to ensure they can afford long term car expenses, and shows that affordability is the priority for the average driver and is informing forecourt stock decisions for suppliers.
Lisa Watson, Director of Sales at Close Brothers Motor Finance, says: “Drivers’ continued battle with the rising cost of living is reflected in the selection of second-hand petrol and diesel-powered car models which have been financed most frequently throughout the year, such as the Ford Fiesta, Ford Focus and Volkswagen Golf. This comes as no surprise due to lack of clarity around the cost of buying and maintaining an electric vehicle in comparison to a petrol or diesel-powered car. The aforementioned models have affordability, versatility and accessibility in common and are ULEZ compliant depending on the variant, therefore being optimal choices for a household car.
“The transition from fossil fuel powered vehicles to electric vehicles will be no small feat as drivers and dealers face the decision of supporting sustainability by embracing potentially higher car costs.
“During this period of economic uncertainty, consumers are realigning their priorities to support their pockets and manage household expenses. Households are cutting down on the number of cars, the size of the car and number of modern features which may inflate the sale price.”
Close Brothers Motor Finance’s most financed cars of 2023:
Top cars financed in 2023
BMW 3 Series
BMW 1 Series
Mercedes – Benz A – Class
Mercedes – Benz C – Class
Range Rover Evoque