Green Car Purchasers More Likely to Pay with Green

This is what drives car dealers nuts: Green Car Purchasers More Likely to Pay with Green | TheDetroitBureau.com

Buyers of alternative fuel vehicles last year were more likely to pay cash for their EV or hybrid than those purchasing a vehicle with a traditional internal combustion engine, said Experian Automotive.

Sales of those vehicles have been in the decline through the first quarter of this year, but those buying them are pretty much a sure thing for automakers. More than 18% of consumers that purchased a “Green” vehicle paid in cash, compared to 15.2% of those that purchased a gas-powered vehicle, the company said.

“Despite the increases we have seen in automotive financing over the past few years, it’s interesting that a larger percentage of consumers buying ‘Green’ vehicles are choosing to buy with cash,” said Melinda Zabritski, senior director of automotive finance for Experian.

“To put it in context, nationally, consumers purchased new vehicles with cash roughly only 16% of the time. A possible reason for this could be that consumers buying ‘Green’ vehicles are in the highest credit tiers, which could indicate they have more disposable income than those buying a gas vehicle.”

Because they’re in the top credit tier, when they do finance or lease their vehicle, they’re paying less due to better interest rates. Nearly 83% of consumers who purchased an alternative-powered vehicle fell within the prime credit category, compared to 71.5% of consumers who purchased a gas-powered vehicle. Additionally, the average credit score of a consumer purchasing “Green” was 737, while it was 711 for traditional vehicles.​

Then there is the Garrison Keillor effect,". . . where all the women are strong, all the men are good looking, and all the children are above average." Aren't we all?

Bob Wilson