A new breed of car financing: Feature bundles and embedded services

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There is a widespread belief that offering additional features, such as vehicle swaps, in auto financing is a marketing stunt because customers prioritize affordability over everything else. To test this assertion, we asked more than 4,000 customers across France, Germany, and the United Kingdom in our regular McKinsey Mobility Consumer Pulse Survey for their thoughts on the future of auto finance. We wanted to know if and why customers appreciate leasing offerings and add-on features, as well as whether they are willing to pay for such features. Further, we wanted to gather more information on the use and true cost of all-in service deals, which are now becoming a necessity.

Insight #1: All-in service is the top reason for leasing

Respondents who planned to lease their next car valued all-in service deals and not having to worry about selling a used car at end of lease term.

Insight #2: New features like vehicle swaps, CO2 offsetting in non-EVs, and rental-car options are key features

Survey respondents particularly valued the ability to switch vehicles during the lease contract.

Insight #3: Car owners would be willing to pay extra for pausing a contract or swapping cars during a lease, with many willing to pay more than 10 percent over the base leasing rate

Many survey respondents are willing to pay more to pause contracts or swap vehicles during a lease.

Overall, additional features could become key purchasing criteria in leasing, especially the flexibility to swap vehicles or pause contracts. Of course, the survey captures only self-reported preferences. A recent analysis of data from subscription players shows that the actual number of people who swap vehicles during the contract duration is lower than those who express interest in doing so. Thus, the true cost of those features has yet to be determined.

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