The UK cost-of-living crisis is significantly influencing car buying habits, with buyers pushing back vehicle purchases, revising budgets and considering different brands and models when searching for a car.
A study, conducted by Autocar sibling title What Car?, took the responses from 1232 people around the UK and found 35.05% of buyers were reducing the amount of money they were going to spend on their next car.
Of that figure, 22.99% said they would cut their budget by 20% or higher. Some 25.37% estimated a cut of 10-15% and 23.58% of buyers said they would spend 5-10% less.
The What Car? study also showed that of the 1232 buyers, 36.61% had chosen to delay their purchases because of the cost-of-living crisis. Of those, 48.45% had pushed back their purchase by more than three months, and 24.11% chose to delay until 2023.
Some 39.68% of buyers decided to change the make or model of the car they were considering due to the cost-of-living crisis. Of that figure, 71.74% considered a completely different manufacturer and 12.8% said they were looking at a different model from the same car brand.
Just 38.46% of buyers said they were looking to buy a new car, with 34.01% seeking a used model. The remaining 27.53% suggested they were still undecided about whether to buy new or used.
Of the 34.01% looking to buy a used car, 20.62% said they were originally going to buy a new model but attributed their change in decision to the cost-of-living crisis.
The What Car? survey also queried 401 people who had recently purchased a vehicle. Around a fifth (20.45%) said the cost-of-living crisis affected their buying decision, while 61.25% said they had chosen to buy a different model from the one they originally wanted.
Over half of owners (59.09%) said they bought new, while the remaining 40.91% chose to buy used. Around 13.64% of used buyers said they initially wanted to buy a new car, but chose a used model to cut costs.
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I have to agree with the other comments. I dont think its the cost of living crisis that has done this, it isnt really hurting too many people yet (I am sure far more will be hurting after they get the winter fuel bills). I think people are staying away from dealers due to the high price of cars compared to what people paid 3, 4 or 5 years ago when they bought their last new car. If they need another car they might buy second hand, if they dont, why change at all.
I am sure that the reduced choice of cars, and the SUV intesive market are also partly to blame.
I do wonder if car makers have put up the price of ICE cars to make EVs look less expensive in comparison, or if they just want the money to pay CO2 fines, or maybe subsidise the price of EVs. It doesnt really matter. They are too expensive, and what they offer just doesnt appeal
Car manufacturers have gotten very greedy. My car is now 38% more expensive to lease than 2 and a half years ago.l! An already hefty £520/month lease was proposed at £720 per month and a larger deposit for the replacement. Won't be happening. They're pricing themselves out of a market. I'll go used for a few years until they see sense when the new sales fall off a cliff. Disaster awaits in the new car market.
Autocar - name and shame the worst culprits. I dare you.
Just curious is that a 38% increase in list price or a 38% increase in price now vs discounted price previously?
Just on lease cost. List price up from £44k to £48k, so less than 10%. Residuals going up too, so pure greed/gouging. The reckoning is coming for manufacturers on new car sales. Add in cost of living hitting hard later this year and they face a massive issue. I'm going to hold out until they see the reality and not commit to a 3 year deal until prices drop dramatically.
Unfortunately I think the good old days of oversupply and discounted deals are a long way off and makers are taking advantage. Even new Chinese entrants are pricing product at levels I bet they never dreamed of