NAF and Ayvens help car buyers make safe choices
Car buying has become somewhat of a risky endeavor. A collaboration between the consumer organization NAF and the car administration company Ayvens could potentially safeguard motorists against losses and provide members with access to great purchasing benefits.
The automotive industry is hardly recognizable, and the consequences for the average car buyer can quickly become significant. Car prices dropping by 25% overnight, numerous new car brands from China and the USA, rising interest rates, and rapid technological development make car buying today riskier than the last time most of us bought a car.
The risk of interest rates and loan costs rising more than you anticipate, the depreciation of your car's value being greater than expected, and further reductions in car prices are very real.
Few have fully grasped the new realities of the market, believes Marius Paus, Marketing Director at the car administration company LeasePlan. They have a collaboration with NAF that ensures NAF's members against unpredictable monthly costs and unpleasant surprises.
The pitfalls of a car purchase in today's market can be numerous
Paus states with reference to Tesla's significant price reduction for the Model Y in January that it is highly unlikely we have seen the last price decrease. The company has already hinted at more price reductions. Other manufacturers are forced to follow suit, according to the automotive economist who manages the car fleets of clients of all sizes. All electric cars are still far too expensive. The long-term trend is that prices will decrease significantly before stabilizing, he believes.
Better new cars lead to lower prices for used cars
The technical development of electric vehicles is progressing rapidly. When cars not only become cheaper but also quickly become better, it further pushes down the prices of the cars already on the roads. The pace of development for electric cars is entirely different from that of fossil fuel cars, and this will be reflected in the price development.
Naturally, some customers may feel uncomfortable about putting half a million kroner on the table to buy a car they are unsure will become outdated and of little value in a few years. The average price for new passenger cars last year was 579,000 kroner, according to the Norwegian Road Federation (OFV).
Higher interest rates
Most agree that interest rates will continue to rise, and it's difficult to say for sure how high they will go. If you finance the car purchase with a loan or through leasing with a floating interest rate, which is common, the car can quickly cost you more than you had anticipated. Additionally, the new lending regulations may make it harder to get approved for a car loan, especially if you already have other large loans, such as a mortgage.
The collaboration between NAF and LeasePlan provides members with several important benefits
LeasePlan is among the world's largest buyers of cars. In many cases, they negotiate centrally directly with manufacturers and achieve significant purchasing discounts. The agreement NAF has entered into with LeasePlan ensures that members benefit from this.
