How the cost-of-living crisis is impacting decisions made by car buyers
The cost of living crisis is having a significant impact on 70% of new and used car buying decisions as a result of the rising costs facing UK households, with one in five buyers claiming they will delay their next purchase.
Research by eBay Motors Group* indicates that the rise in energy bills prompted nearly a quarter (23%) to say they will delay their next car purchase, while a further 29% will now buy a cheaper car and 20% will buy a smaller one. However, 28% say the rise would not influence their decision.
When asked how the general cost of living increases would affect their next car purchase, a similar trend emerged with 23% saying they will delay, 30% saying they will buy a cheaper car and 19% now looking for a smaller car. Over a quarter (27%) say it will not have any influence.
The rising cost of fuel has impacted the decisions of 70% of buyers, most say they will go ahead and buy with 28% opting for a cheaper car and 23% a smaller car, while 19% will delay their purchase. However, 31% say these rises will have no effect.
Simon Whicher, Sales Director at Cooper Solutions recommends that retailers help consumers understand the affordability of their next purchase and how this can be balanced against increased living costs.
“Retailers are in the ideal position to help consumers choose the right car, with their knowledge of running costs, and through using data to help pitch the right car to the right customer.”