A new report reveals that the majority of Swedes rely on loans or private leasing to finance new or electric car purchases, with fewer than one in three buyers covering the cost independently.
In the first eight months of this year, 44% of Swedes who bought a new car chose private leasing, a slight decrease from 47% in the previous year. At the same time, 28% opted for car loans with the vehicle as collateral through finance companies, up from 24% in 2023.
Financing for electric cars, either through private leasing or car loans, has risen from 29% to 32%, according to the report Bilfinanshjulet, produced by Volkswagen Financial Services Sweden.
“Private leasing continues to be a strong choice among customers. It offers a way to drive a new, modern vehicle, such as an electric car, without the need for a loan or the personal risk of depreciation. What’s particularly interesting is the renewed increase in electric car leasing among private customers. As a car finance company, we see it as vital to support the transition to a greener Swedish car fleet”, said Patrik Lindroth, CEO of Volkswagen Financial Services Sweden, in a press release.
According to the report, only about one in three Swedes finances their car purchases with savings or through non-vehicle collateral loans.
Private leasing remains most popular among individuals born in the 1940s, 1990s, and especially those born in the 2000s.
