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Agent signs a contract for the purchase or Leasing of a new car. New car keys in the foreground.

Insights

What is car financing?

Car financing is key to the automotive ecosystem. It can heavily influence how cars are bought and sold, plus, it provides consumers with multiple purchasing options. But what exactly is it? Tom Hooker, Autovista24 journalist, explains how the process works from start to finish. Finding a vehicle purchase can be difficult for buyers. Car financing allows customers to possess a vehicle without paying for its full value upfront. It converts a large, one-off purchase into a series of predictable payments. In turn, it plays a vital role in how cars are priced, sold, and managed across the automotive industry. https://www.youtube.com/watch?v=wZqEZdeIVUk Car financing simultaneously prices the value of the vehicle today and its forecast residual value (RV). It also determines the cost and risk of lending money over time. The payment method links the car itself to an agreement. This sets how the car is paid for, who takes on the financial risk and who earns money from the deal. Furthermore, it establishes when the value of the car is recovered. This could be retrieved upfront, gradually through monthly payments, or at the end of the contract. Why does car financing exist? For many consumers, tying up money in a depreciating asset may not be a desirable financial decision. Car financing solves this by spreading the cost over time. It aligns payments with consumer income, usage, and expected vehicle depreciation. Meanwhile, for manufacturers and dealers, it can support consistent demand. Customers may be more willing to buy when monthly payments feel manageable, instead of paying one lump sum. This can allow dealers to sell higher-value vehicles and avoid sales declines. It can also enable them to have more influence over what models customers choose through finance offers. From a commercial standpoint, car financing is a framework made up of different structures that allocate risk in different ways. Some finance products prioritise ownership, while others prioritise usage. Sometimes, RV risk sits with the lender, and in other cases, it remains with the customer. These RVs directly influence pricing competitiveness, profitability, and used-car market performance. Accurate RV forecasting can support lower monthly payments and healthier margins. Conversely, poor forecasting could lead to stock imbalances or value erosion later in the vehicle lifecycle. Where do finance and insurance fit in? In most retail transactions, the finance product is sold by the dealer on behalf of a finance provider. Some finance providers are captives, and others are independent finance houses. These providers supply the funding that allows dealers to present finance agreements to customers. Once a customer has chosen a vehicle, the focus shifts to the design of the finance agreement. This turns the vehicle price into a specific, personalised offer. This stage aims to bring everything together into a single agreement. The contract must meet lender requirements and comply with regulations. Clarity is particularly important, as this part of the process is often unfamiliar to customers. Ultimately, car financing can influence which vehicles sell and how often customers return to dealerships. It also plays a vital role in residual value management and how risk is distributed across the automotive ecosystem. As vehicle prices rise, financing could play an increasingly important role in shaping the automotive industry.
Car of the Year at the Brussels Motor Show 2026

Insights

Key highlights from the Brussels Motor Show 2026

With model debuts and the European Car of the Year award, the Brussels Motor Show is an important automotive event. Autovista24 special content editor Phil Curry presents highlights from this year’s show. The Brussels Motor Show has grown in stature in recent years. Since the doors closed on the Geneva International Motor Show (GIMS) in Switzerland, automotive brands have shifted their focus to the Belgian event. As the first automotive event of 2026, the Brussels Motor Show also provided a look at potential upcoming market trends. Talks of fresh partnerships, new brands, plus continued fleet electrification highlighted Europe’s developing automotive market. Autovista24 looks at a selection of new models and interviews the winners of the European Car of the Year 2026.  https://www.youtube.com/watch?v=IJhAc0V5cTI Plenty to see at Brussels Motor Show The halls at the Brussels Expo were packed with carmakers, many bringing new or refreshed models to display. This included the Kia EV2, a new battery-electric vehicle (BEV) which completes the Korean brand’s EV line-up. By adding a small city-car model to its range, the company can cater to many different drivers. Kia also introduced an expanded GT model range, including the EV3 GT, EV4 Hatchback GT and EV5 GT. Opel used the show to reveal the new Astra, with an improved ‘Vizor’ headlight profile. This features an illuminated badge sitting central to new lighting strips. The Stellantis Brand also redesigned the interior to make it more comfortable. Subaru arrived at the event with two BEVs, the e-Outback and the Uncharted. Both cars feature all-wheel drive, keeping the brand’s offroad credentials intact. Mitsubishi used the show to highlight its new range, as it makes a European comeback. Models included the ASX, the Eclipse Cross, the Grandis and the Outlander PHEV. With the brand working in partnership with Renault, it will be hoping to re-establish a foothold in the European market. Another brand that will be working with Renault is Ford, which confirmed two new small cars will arrive in 2028. The carmaker brought its Ranger plug-in hybrid (PHEV), alongside a mix of passenger cars and light-commercial vehicles. Central to this was a remote-control car racing track, with drivers able to race using simulation rigs. Who won European Car of the Year 2026? The Brussels Motor Show is also the new home of the European Car of the Year awards. A shortlist of seven new models was judged by automotive journalists from across Europe, with points awarded to each. This year, the Citroen e-C5 Aircross, Dacia Bigster, Fiat Grande Panda, Kia EV4, Mercedes-Benz CLA, Renault 4 and Skoda Elroq made the shortlist. Of these, judges awarded the Mercedes-Benz CLA the most points, giving it the 2026 title. This was the first time the German carmaker won European Car of the Year since 1974. The result also broke a two-year winning streak for Renault. It saw its Scenic take the title in 2023, and the Renault 5 in 2024. ‘It really means a lot to me, and also the Mercedes-Benz team, many hundreds and thousands of people who worked to make this car happen. It is a great reward to get this trophy from journalists across the whole of Europe, especially with many countries voting the CLA in first place,’ Oliver Löcher, vice president, overall vehicle integration at Mercedes-Benz, told Autovista24. ‘In some aspects, the CLA is a pivotal car. It is the first on our new compact platform, on which we will now roll out derivatives, like the GLB, which we launched at Brussels. It is also the first car with our latest generation e-drive, featuring 800-volt, high-efficiency fast charging. It is also the platform for our new MBO operating system. The CLA is, therefore, the frontrunner of a new generation of Mercedes-Benz cars,’ he added. ‘This year will see a lot of new-car launches from ourselves, making it a very exciting and busy year. But for now, we have the CLA, and I am very happy to see it win the European Car of the Year,’ Löcher concluded. Awards come to Brussels Motor Show The European Car of the Year award continues to be coveted by carmakers. This was clear in the reaction of the Mercedes-Benz team, with celebrations continuing throughout the event. ‘Even though the European Car of the Year award has been running since 1964, it is still very relevant. For consumers, today they face a lot of new technologies, and even new brands that were not heard of some years ago,’ commented Søren W. Rasmussen, president of the jury at the European Car of the Year. ‘This means they need guidance, and the Award winner, and its finalists, all help guide consumers directly to the best cars in the market. It is, therefore, very important for carmakers to have this prize,’ he added. The European Car of the Year award was a staple of the Geneva International Motor Show. But moving to the Brussels Motor Show has allowed the award to provide a full year of benefits for the winner and the finalists. Yet while the Mercedes-Benz team celebrate winning the 2026 prize, attention has already turned to the 2027 award. ‘We now start looking into the cars which can be candidate cars for the prize next year. As we walk around this exhibition, we can see already now there are some very good cars which will be definitely on the long list, and may make the shortlist for the end of 2026,’ concluded Rasmussen.
EV driving at night

Insights

VW tops European EV market as overall demand rises

Electric vehicle (EV) deliveries surged across Europe in the first quarter of 2025, with Volkswagen (VW) reclaiming the top spot in the best-seller rankings. Autovista24 journalist Tom Hooker breaks down the latest data. A total of 847,591 EVs took to European roads in the first quarter of 2025, an increase of 20% year on year. This equated to a gain of 141,543 battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs) compared to the first three months of 2024. The growth was mainly driven by all-electric powertrains, which saw registrations surge by 28%. According to the latest data from EV Volumes, March was the plug-in market’s best month, with deliveries rising by 22.3%. Strong growth was also recorded in January, up 20.7%, while February saw the lowest increase of 16.2%. BEVs continued to account for the majority of EV registrations, and its hold on the market grew in the first quarter, compared to one year prior. The technology made up 68.3% of the plug-in total from January to March, up 4.3 percentage points (pp) year on year. This meant the share of PHEVs dropped from 36% to 31.7%. Germany led Europe’s EV market in the first three months of 2025, accounting for 20.7% of all deliveries. The UK followed closely, just 1,761 units behind, with a 20.5% share. France ranked third with 11.3%, while Belgium and the Netherlands claimed 6% and 5.7% respectively. VW takes EV lead VW emerged as Europe’s best-selling brand in the first quarter of 2025, thanks to 94,273 units. This was the carmaker’s highest-ever volume in a quarter. It also marked an increase of 161.2% year on year. The carmaker took an 11.1% share of plug-in volumes from January to March, an improvement of 6pp. The ID.3, ID.4 and ID.7 were VW’s best-performing models, with the trio accounting for 60% of the marque's total. BMW secured second, reaching 78,896 deliveries, up 12.3% year on year. It made up 9.3% of the market, down from 9.9%. The BMW iX1 proved popular in this period, with 14,379 registrations. The brand was also helped by good performances from its X1 and 5-Series PHEV models, with 7,992 and 7,019 units respectively. Poor EV performances Mercedes-Benz came next with 58,152 units, down 8.1% compared to the first quarter of 2024. It also equated to its lowest quarterly figure since the second quarter of 2023. This caused the carmaker’s market share to fall from 9% to 6.9%. Its EQA SUV performed particularly well, posting 10,834 deliveries. Tesla ranked fourth, with registrations falling 37.3% year on year to 54,233 units. This gave the brand a 6.4% market share, nearly half of the 12.2% it held a year earlier. This marked its lowest quarterly total since the third quarter of 2022. However, its Model Y and Model 3 still topped Europe’s BEV market, with 30,407 and 23,388 units respectively. Volvo finished fifth, with 49,923 deliveries in the first quarter. This was a drop of 12.3% compared to the first three months of 2024, its worst performance since the fourth quarter of 2023. The manufacturer represented 5.9% of overall EV registrations, down by 2.2pp compared to one year ago. Its XC60 PHEV enjoyed a good start to the year, reaching 14,817 registrations. Audi claimed sixth with 44,101 units. This represented a 7.7% decline year on year, as its share also fell from 6.8% to 5.2%. The Q4 e-tron was a popular choice among customers, recording 17,164 deliveries. Cupra is coming Cupra secured seventh place with a record 39,106 registrations in the first quarter of 2025, a remarkable 124.6% increase year on year. The brand captured 4.6% of the total EV market, up 2.1 percentage points from 2024. The Cupra Born BEV performed especially well early in the quarter, recording 11,171 units between January and February. Then came Kia in eighth, with 37,624 deliveries, up 13.8%. However, due to increasing competition, its share dropped from 4.7% to 4.4%. The EV3 boosted the marque’s volume significantly, making up 48.7% of its total. Skoda landed ninth, as it saw 35,946 new EV models take to the road. This was a 105.3% improvement compared to the same period last year, giving it a 1.7pp increase in market share to 4.2%. Its Enyaq commanded the performance, representing 55.3% of the brand's plug-in total. Meanwhile, the Elroq, which entered the market in November 2024, recorded 6,531 registrations. The Skoda Kodiaq PHEV also helped, with 6,336 deliveries. Rounding out the top 10 was Renault, trailing Skoda by just 379 units. It posted 35,567 deliveries across the first three months of 2025. This was a year-on-year increase of 90% and marked the brand’s best quarterly period since the fourth quarter of 2022. The carmaker represented 4.2% of the overall EV market, up from 2.7%. The Renault 5, which began registrations in June 2024, made up 52.2% of the manufacturer’s total volume.
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Insights

The Automotive Update: What is the automotive cost of Trump’s tariffs?

Trump’s automotive tariffs take effect, the EU Commission submits its CO2 emissions proposal, and carmakers face hefty fines. Autovista24 editor Tom Geggus discusses the week’s major automotive headlines in The Automotive Update podcast. How are carmakers responding to Trump’s tariffs? Why were manufacturers and industry bodies fined in the EU and UK? What major electric vehicle (EV) charging companies have entered into a partnership? Subscribe to the Autovista24 podcast and listen to previous episodes on Spotify, Apple and Amazon Music. Further Trump tariffs US President Donald Trump announced wide-ranging global tariffs on goods entering the US. Rates stretched between 10% and 50% for different countries. Economic forecasts were hit hard as fears of a recession driven by higher prices took hold. Following the introduction of the tariffs, businesses and consumers are looking to leaders around the world for their reactions. The potential of retaliatory tariffs hangs in the balance as the global economy braces itself for an escalating trade war.  European Commission President Ursula von der Leyen called the tariffs ‘a major blow to the world economy.’ She did highlight a readiness for negotiations with the US. However, a package of countermeasures is currently in the works in response to steel tariffs. ‘We are now preparing for further countermeasures to protect our interests and our businesses if negotiations fail,’ Von der Leyen added. Tariffs cost automotive manufacturers Tariffs on vehicles imported into the US came into effect on Thursday. Cars made outside of the country are now subject to duties of 25%. Further tariffs on parts and components, such as engines and transmissions, are set to begin in early May. The tariffs will cover more than $460 billion (€416 billion) worth of imported vehicles and parts annually, Reuters wrote. These tariffs will have a range of impacts on different vehicles, according to the Anderson Economic Group. The lowest impacted models made in the US might see a tariff cost of between $2,500 and $4,500. Meanwhile, imported cars from Europe and Asia could see a potential tariff cost exceeding $20,000. ‘We are deeply concerned about the escalation of trade tensions in the world,’ said Sigrid de Vries, director general of ACEA. ‘We urge our leaders to meet urgently so that they can find a solution to any issues preventing free and fair trade between historic allies and allow the EU-US relationship to flourish once again,’ she stated. Stellantis plans to temporarily halt some production in Canada and Mexico, as reported by Bloomberg. The carmaker plans to lay off 900 US workers temporarily across five plants, Reuters revealed. The publication also highlighted that Nissan will not take new US orders for its Mexico-built Infiniti SUVs. Meanwhile, Ford announced discounts across its model range as it relied on its sizeable inventory. EU emission regulations The European Commission has submitted its amendment to the CO2 emission standards for passenger cars and light-commercial vehicles. This looks to allow carmakers to average out their emission results for three years, across 2025, 2026, and 2027. For example, if a carmaker exceeds its emission targets in one year, it could look to compensate for this in the other two. ‘We call on the European Parliament and Council to ensure the fast adoption of this amendment,’ stated de Vries. Meanwhile, Transport and Environment (T&E) called the concessions a mistake, pointing to rising sales of battery-electric vehicles in Europe. ‘The EV sales rebound shows that the existing EU target is working. Require carmakers to sell more EVs, and the buyers will come. It is a mistake to change the rules in the middle of the game. This must be the last flexibility carmakers are given,’ commented Julia Poliscanova, senior director for vehicles and e-mobility supply chains at T&E. Carmaker cartel fined The European Commission and the UK’s Competition and Markets Authority (CMA) have fined carmakers for participating in an end-of-life-vehicle-recycling cartel. The European Commission fined 15 car manufacturers and ACEA a total of roughly €458 million. Meanwhile, the CMA fined 10 car manufacturers and two trade bodies a total of £77.7 million for similar conduct. In its investigation, the European Commission found that, for over 15 years, carmakers had entered into anti-competitive agreements and engaged in practices related to the recycling of end-of-life vehicles. European charging body formed European EV charging companies Atlante, Electra, Fastned and Ionity have partnered to create the Spark Alliance. This body looks to develop a seamless charging network, simplifying the charging experience and making EV ownership easier than ever. Starting this summer, drivers will be able to charge and pay at any one of Spark Alliance’s 1,700 member stations. This means access to 11,000 charging points across 25 European countries. 

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