Digital financial products are becoming increasingly popular. About 70% of respondents in Germany, the USA, and China can imagine concluding a financing or leasing contract, a car subscription, or a direct purchase on the vehicle manufacturer’s website without personal consultation. These are some of the results of a recent survey by market research agency Kantar on behalf of Mercedes-Benz Mobility AG. More than 2,500 drivers of various vehicle brands in Germany, the USA, and China were surveyed. Respondents who decline the purely online sales process can imagine concluding a contract online if they have a personal contact person available during the process. At the same time, the study shows that over half of the respondents can imagine acquiring a fully electric car as their next vehicle. Especially in China, there is a high interest in fully electric vehicles. Across countries, over a third of respondents are also open to plug-in hybrid vehicles. When deciding on an electric vehicle, the positive environmental impact of EVs and sufficient charging options are particularly important. When acquiring the vehicle, a majority of respondents prefer the manufacturer’s own financial products.
“The study results show that we are on the right track with the introduction of our digital purchase process, among others in Germany and China. Our customers can now conclude leasing contracts online, but we always offer the option of personal consultation if desired by the customer.”
Franz Reiner, CEO of Mercedes-Benz Mobility AG
Digital financial products are becoming increasingly popular
Looking at the results in detail, the majority of respondents in all countries still consider online touchpoints such as the vehicle manufacturer’s website in the purchasing process to be an equally important source of information as the dealer in person. Compared to 2022, this share has increased (GER: 56% vs. 55%; USA: 76% vs. 52%, CHN: 85% vs. 76%). Across countries, a large majority of respondents can also imagine concluding a financing or leasing contract (71%), a car subscription (67%), or a direct purchase (67%) without personal consultation on the vehicle manufacturer’s website. Among Chinese respondents, the willingness to conclude a financing or leasing contract (81%) or a car subscription (85%) online without personal consultation is the highest. A consistent personal contact person can also further increase the willingness to conclude a contract online. Through personal consultation, this willingness increases across countries by 45% for financial products and by 37% for direct purchase. Especially in the USA and China, the willingness for an online conclusion of a financial contract through personal contact is increasing (US: +51%; CN: +68%).
Over half of respondents are considering acquiring a fully electric vehicle as their next vehicle
Regarding the considered types of vehicles, more than half (53%) of respondents across all three countries surveyed can imagine acquiring a fully electric vehicle as their next vehicle. In China, the interest in a fully electric vehicle within the next five years is the highest at 80%. In Germany and the USA, just under 40% are considering a fully electric car (GER: 39%; USA: 38%; CHN: 80%). Over a third of respondents can also imagine acquiring a plug-in hybrid vehicle in the next five years (total: 35%; GER: 32%; USA: 29%; CHN: 43%). The higher the vehicle segment of the current car, the more likely the driver is to choose a fully electric car in the next five years. Age also plays a role: younger respondents, with an average age of 38, are more likely to consider acquiring a fully electric car (GER: 45; USA: 40; CHN: 34) than other age groups. However, the gasoline engine remains relevant for 43% of respondents across all three countries surveyed in regard to the next five years (GER: 47%; USA: 43%; CHN: 39%).
Positive environmental impact is the main reason for deciding to acquire an electric car
The main reason for deciding to acquire an electric car for drivers who do not yet own one is the positive environmental impact (35%) and existing charging options (31%). For those who already own an electric vehicle, in addition to the environmental aspect (50% globally), vehicle performance (48%) and design (38%) are particularly important in the US, while vehicle technology (51%) plays a decisive role in China. In Germany, the quiet drive is also important for 45% of electric car drivers. Concerns about acquiring an electric car are currently related to the price (GER: 45%; USA: 33%; CHN: 21%) and the range (GER: 43%; USA: 27%; CHN: 40%) according to survey respondents. In the US, the biggest obstacle to acquiring an electric car is the expected battery life and associated replacement costs, with 34% citing this as a concern. Respondents in all three markets expect information on battery replacement costs and expected battery life (both 37%) before acquiring an electric car, and they desire good communication from manufacturers.
Financial products are still more popular than direct purchase
Overall, acquiring a vehicle with financial products is more popular than acquiring through direct purchase. This applies to both electric and combustion engine vehicles. For the acquisition of an electric car, the majority of respondents (53%) would opt for a financial product (financing, leasing, or car subscription) (GER: 63%; USA: 64%; CHN: 44%). A similar trend is observed for the acquisition of a combustion engine vehicle, with 53% preferring a financial product (GER: 53%; USA: 65%; CHN: 34%). Across all markets, the manufacturer’s own financial services provider is preferred for both drive types (BEV: 71%; ICE: 69%). Financing remains the most popular option for financial products in all markets, both for electric and combustion engine vehicles. In Germany and the US, respondents prefer financing due to the easy and secure nature of vehicle acquisition. In both countries, there is also the opportunity to fulfil an automotive dream through financing that would be too expensive with direct purchase. In China, on the other hand, financial reasons, such as avoiding a high one-time payment with direct purchase, are the most important factors for choosing financing. Across all markets, the decisive factor for leasing is the opportunity to drive a new, up-to-date vehicle.
Financing and leasing products are drivers of brand loyalty
For almost two-thirds (62%) of the study participants, leasing and financing products play a significant role in brand loyalty. Leasing and financing have a strong influence on brand loyalty, especially in China, but they are also a loyalty driver in the US and Germany (GER: 55%; USA: 62%; CHN: 81%). Unlike direct purchase, the majority of respondents in all three countries choose a more extensive equipment level (73%) or a new car instead of a used one (73%) when leasing or financing a vehicle. While Chinese customers still tend to choose additional services when concluding a financing or leasing contract (GER: 46%, USA: 66%, CHN: 86%), a small majority of German respondents are inclined to choose a higher-class vehicle model (GER: 51%, USA: 65%, CHN: 75%).
Public charging is the most commonly mentioned charging option across all countries
Public charging is the most commonly mentioned charging option across all countries (65%) that is available to respondents. Home charging is only possible for half of the respondents (52%), while 47% have access to charging at work. When asked about their preferred charging location, almost half of the respondents across all countries (47%) mentioned home charging. In Germany, more than half (56%) currently prefer to charge at home, while 26% prefer to charge at work and 18% prefer a public charging station (home/work/public: GER: 56% / 26% / 18%; USA: 44% / 27% / 28%; CHN: 44% / 30% / 26%). For more than half of the German respondents, installing a wall-mounted home charger is possible (60%), however, they have not yet done so.
Overall, more than half of respondents (53%) see the availability of fast charging as a central aspect of public charging (GER: 63%; USA: 47%; CHN: 52%). Affordable charging costs at public charging stations are particularly important in Germany (GER: 59%; USA: 38%; CHN: 35%). In addition, a safe and well-lit environment at public charging stations is important, especially for American respondents (41%) (GER: 37%; USA: 41%; CHN: 35%). In China, respondents consider charging with green energy (39%) and the possibility of relaxation, such as taking a power nap at the charging station (38%), important for public charging.
In-car payment is becoming increasingly popular among respondents
The openness to in-car payment – paying for products and services from the car – is increasing in all markets compared to 2022. Overall, 53% of study participants responded that they would very likely or would definitely use in-car payment (53% vs. 33% in 2022). The greatest openness to in-car payment still exists in China (64% vs. 46% in 2022), while the biggest gains compared to 2022 were in the US, with more than twice as many respondents who can imagine using the car as a means of payment (63% vs. 27% in 2022). Potential users still consider the in-car payment offer as a significant competitive advantage of the vehicle manufacturer over other providers – especially in China and the US (GER: 48%; USA: 83%; CHN: 85%). Time savings and convenience are mentioned as the most important advantages of paying from the car across all countries (60%) (GER: 63%; USA: 52%; CHN: 64%), and for German respondents, contactless payment has the greatest added value (44%).
SOURCE: Mercedes-Benz
