The financialisation of car consumption: Difference between revisions
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| citation = {{citation|Haines-Doran, T. (2023). The financialisation of car consumption. New Political Economy, 29(3), 337–355}} | | citation = {{citation|Haines-Doran, T. (2023). The financialisation of car consumption. New Political Economy, 29(3), 337–355}} | ||
| doi = {{doi|10.1080/13563467.2023.2254727}} | | doi = {{doi|10.1080/13563467.2023.2254727}} | ||
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Latest revision as of 09:47, 28 February 2025
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| Journal article record
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| Title | The financialisation of car consumption |
| Journal | New Political Economy vol. 29 no. 3 pp. 337-355
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| Abstract | This paper investigates the growth of new forms of personal finance used in purchasing motor vehicles – a development which it characterises as ‘financialisation’. It focusses on the case of the rise of the personal contract purchase (PCP) in the United Kingdom market, and seeks to account for its growing popularity, and potential implications. It is found that the rise of PCPs is best understood as a form of financial innovation designed to help car manufacturers overcome long-term profit realisation problems produced by market saturation in mature markets. The way PCPs are structured lowers consumers’ monthly finance payments, allowing them to access to higher value vehicles, and encourages more frequent purchases of new vehicles, all of which allows greater manufacturer profit realisation. However, it does so in a way which increases financial risk, to consumers, car manufacturers, and financial investors. On the other hand, manufacturers’ risk exposure is limited by how the consumers’ car dependency lowers expected default rates. PCPs threaten financial stability, as well as sustaining social and environmentally unsustainable consumption practices. |
| Authors | Tom Haines-Doran
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| Date |  September 2023
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| Keywords and locations | |
| Keywords | Car dependency
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| Locations | United Kingdom
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| How to find and cite this journal article | |
| Publication |  10.1080/13563467.2023.2254727
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| Access | This journal article is open access and can be read for free as of 20 February 2025. |
| Citation | Haines-Doran, T. (2023). The financialisation of car consumption. New Political Economy, 29(3), 337–355 |
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