1:44 pm, October 25, 2022
The cost of living crisis is beginning to have a ‘profound’ impact on used car buyers, new research has found.
eBay Motors Group found that the ongoing crisis is influencing 75 per cent of buyers’ next car purchases.
Its Consumer Insight Panel quizzed 2,000 new and used car buyers across the UK, and found that of that 75 per cent, 32 per cent said they were putting their purchase on hold.
Meanwhile, 28 per cent said that recent rises in the cost of living will mean they’ll be purchasing a cheaper car, and 16 per cent a smaller one.
However, a quarter of respondents said the increases will have no impact on their next purchase.
The findings identified soaring energy bills as the biggest concern among buyers, with 74 per cent saying these increases will influence their next car purchase.
This was followed by the inflationary impact on goods and services (70 per cent), high petrol and diesel pump prices (68 per cent) and rises in the cost of borrowing (59 per cent) and council tax (57 per cent).
Lucy Tugby, eBay Motors Group marketing director, said: ‘The cost of living crisis is having a profound impact on car buyers, with a third now delaying their purchases.
‘However, the balance is responding to higher costs by looking to buy cheaper or smaller cars, while a quarter say the rises will have no influence on their buying decisions.
‘Our research shows the resilience of the car market with many buyers saying they will be purchasing out of necessity, despite the impact rising costs are having on their household budgets.’
She added: ‘For dealers this means maximising the online exposure of their stock and pricing to market because now, more than ever, in-market buyers will be looking for value for money.’
Investigation: Will cost of living crisis cause a crash in used car prices? Read what a variety of experts think and hear the latest in our exclusive video interview
