ADAC car financing: Continuing high demand for electric cars and SUVs

Thanks to government incentive programs, car financing at ADAC in 2023 was clearly focused on electromobility: 54 percent of the leased vehicles in the ADAC Fahrzeugwelt program were electric cars, with the top-selling small cars being the Fiat 500e and the Kia Niro EV. In comparison: nationwide new registrations in Germany saw only one electric car, the Tesla Model Y, making it to the top ranks. In contrast to leasing, the share of loans for electric cars in financing was only nine percent.

“The different shares show us that leasing is particularly popular for electric cars. Buyers of electric cars apparently feel most comfortable with a fixed-term lease because it allows them to regularly switch to new models and stay updated with technological developments. It also indicates that electric car buyers are inclined towards online services,” says Markus Groiß, Managing Director of ADAC Finanzdienste GmbH.

For combustion engine cars, SUVs and mini-SUVs were in demand in the ADAC Fahrzeugwelt (57.1%), followed by hatchback variants (30.6%) and station wagons (4.6%). Among the models, the VW T-Roc, VW Tiguan, Ford Puma, Skoda Karoq, Volvo XC 40, and Opel Crossland secured the top spots. For diesel and petrol vehicles, the trends were more aligned with new registrations, with one exception: the VW Golf was more popular among loan borrowers. In ADAC car loans, this model, along with the Ford Focus and VW Tiguan, was most frequently financed; the most popular car loan brands in 2023 were VW, Mercedes, BMW, and Tesla.

According to data from the cooperation partner MeinAuto.de, the average lease rate in the ADAC Fahrzeugwelt was 313 euros. The average lease term was 38.5 months, the mileage was 13,130 kilometers, and the average leasing factor was 0.81. Seventy-seven percent of customers opted for an offer with a down payment, which averaged 2,897 euros.
 

New ADAC Leasing Calculator for Checking Offers

In 2024, affordable electric cars from new manufacturers will come onto the market, which are already considered alternatives to the current top models due to their low price.

"We expect increasing interest in leasing vehicles in 2024, and new financing concepts such as car subscriptions and variable financing will also be an interesting option with which new market participants can build trust among buyers," predicts Groiß.

From the broker's perspective, private leasing remains an attractive option to make e-cars more accessible to a broader consumer base and to minimize residual value risk, especially in times of uncertainty when consumers prefer to acquire vehicles in smaller installments and with a clearly defined end of commitment," continues Groiß.

No Increase in Leasing Rates Expected

He does not expect leasing rates for e-cars to rise due to falling residual values: "Most manufacturers have already established e-mobility as a fixed part of their production. Before they scale it down again, they will stimulate demand, and this will make the leasing rates attractive in the medium to long term."

"With new market participants, the leasing offers will most likely become more intransparent and confusing for customers," says Groiß. "The leasing factor, with which one can check how good the offer really is, will become all the more important." He promotes the new leasing calculator in this context.