Why rising car finance costs aren’t stopping people from buying


Despite the upward trajectory of car finance costs in recent times, consumers continue to defy the odds, persisting in their pursuit of purchasing vehicles. This resilience stems from a confluence of factors that transcend the mere numerical increments in financing expenses. Let’s explore the reasons why rising car finance costs aren’t stopping people from buying, and see what’s on offer in todays market.

A thriving car dealership with a diverse selection of vehicles on display.

Evolution of Vehicle Necessity Over Cost

Furthermore, as cars morph from being perceived as luxuries to becoming essential modes of transportation, their significance in daily life has surged. The value derived from car ownership, including convenience, flexibility, and independence, often outweighs the financial burden posed by escalating finance costs. For many, a vehicle remains an indispensable tool for commuting, working, and navigating daily responsibilities, rendering the increased financing expenses a justifiable trade-off.

Sophistication of Financing Options

Despite rising costs, financial institutions and car dealerships have responded with a diverse array of financing options to cater to varying consumer needs. The advent of flexible financing structures, extended loan terms, and diverse interest rate choices presents consumers with a spectrum of choices, enabling them to tailor financing arrangements that align with their financial capacities. This adaptability in financing mitigates the impact of rising costs, making purchasing a vehicle a viable prospect for many.

Demand-Supply Dynamics and Market Forces

In the face of increasing finance costs, market forces continue to play a pivotal role in shaping consumer behaviour. Despite these incremental expenses, the demand for vehicles remains robust, partly fuelled by factors such as evolving lifestyle preferences, changing demographics, and a growing emphasis on personal mobility. Consequently, the supply side responds by striving to meet this sustained demand, often mitigating the deterrent effect of rising finance costs through innovative marketing strategies and value-added offerings.

Technological Advancements and Enhanced Features

Interior of Tesla Model 2

The perpetual evolution of automotive technology introduces newer, more advanced vehicles into the market. Despite the associated costs, consumers are enticed by the prospect of owning vehicles equipped with cutting-edge safety features, enhanced fuel efficiency, and advanced connectivity options. The allure of these technological marvels often eclipses concerns about rising finance expenses, as buyers prioritise the long-term benefits and enhanced driving experience these features promise.

Cultural and Societal Perceptions

Societal perceptions and cultural norms surrounding car ownership continue to exert influence on consumer behaviour. Owning a car, for many, is symbolic of stability, progress, and success. The cultural significance attached to vehicle ownership often overshadows the immediate financial implications of increased finance costs. This psychological aspect drives individuals to pursue car ownership despite the incremental financial burden.

Resilience in Consumer Spending Patterns

The adaptability of consumer spending patterns is evident in their ability to accommodate rising finance costs within their budgetary constraints. While these expenses might pose a challenge, consumers exhibit resilience by adjusting other expenditure areas or seeking additional income streams to maintain their desired lifestyle, which often includes vehicle ownership.

Examples of Cars with Great Interest Rates

Finding cars with low interest rates for finance in the UK often depends on several factors, including the model, the buyer’s credit score, and current promotions by dealerships or manufacturers. However, here are a few models that have historically offered competitive finance rates in the UK:

  1. Ford Fiesta: This popular hatchback often comes with attractive finance deals. Known for its reliability and efficiency, the Fiesta is a common choice for many buyers seeking affordable finance options.
  2. Volkswagen Golf: The Golf has a strong reputation for quality and performance. Dealerships often offer competitive finance rates on this versatile hatchback.
  3. Vauxhall Corsa: Another favourite in the UK, the Corsa, frequently features appealing finance deals. It’s known for its practicality and affordability.
  4. Nissan Qashqai: As a popular crossover SUV, the Qashqai has seen competitive finance offers due to its blend of style, technology, and versatility.
  5. Kia Sportage: Kia often provides competitive finance rates, and the Sportage, with its spacious interior and solid reliability, is usually included in such offers.
  6. Skoda Octavia: Skoda models, including the Octavia, are known for offering value for money. This spacious and practical family car often comes with attractive finance deals.
  7. Hyundai i30: Hyundai frequently offers low-interest finance deals on its models, and the i30, with its range of features and reliability, is often part of these promotions.

Remember, the interest rates offered can vary based on your individual circumstances, including your credit score, the loan term, and the current market conditions. It’s always advisable to shop around, compare offers from different dealerships, and negotiate to secure the best possible finance deal for your desired vehicle. Additionally, staying updated on manufacturer promotions or special financing offers in the UK can help you find even better rates.


The surging costs associated with car financing undoubtedly present a significant challenge to prospective buyers. However, the decision-making matrix surrounding vehicle ownership transcends mere numerical assessments. Factors such as the evolving necessity of cars, the diversification of financing options, market dynamics, technological advancements, cultural perceptions, and consumer adaptability collectively contribute to the enduring resilience of consumers in pursuing car ownership despite rising finance costs. Thus, while the numbers may escalate, the intrinsic value and multifaceted considerations associated with owning a vehicle continue to outweigh the deterrent effect of increased financing expenses.

Concluding why rising car finance costs aren’t stopping people from buying, it’s simply down to supply and demand. People still need cars to get to work, school and other places in their day to day life. However, Choose My Car have options for every type of person, with every type of budget!

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