8:38 am, November 10, 2022
Nearly half of car buyers plan to spend more on their next purchase than they did on their current vehicle, a new poll has revealed.
Data collected as part of eBay Motors Group’s latest Consumer Insight Panel study found that 46 per cent of in market buyers are now expecting to pay more than they would have done previously.
However, this expectation rises sharply to 66 per cent for buyers currently searching for their next car or planning to search within the next month.
At the opposite end of the scale, only 13 per cent of those surveyed expected to spend less on their next car, while 41 per cent are planning to spend the same on their next car as they did on their current vehicle.
Overall, the prospect of spending more is highest among men (48 per cent), under 35s (50 per cent) and those living in London (60 per cent).
The research also identified a significant difference in how much more buyers expect to spend, according to how they pay for their purchase.
Outright purchasers think their next car will cost 22 per cent more than their last one, while those opting for monthly payments only think they will spend seven per cent more.
The difference is more pronounced for used car buyers who think their next car will cost 28 per cent more if they purchase it outright, compared to seven per cent more for monthly payments.
For new car buyers the extra cost is more evenly balanced at ten per cent more for outright purchases and eight per cent more for monthly payments.
Lucy Tugby, marketing director of eBay Motors Group, said: ‘The price inflation of new and used cars is a reality and our research shows in-market car buyers are factoring this in when they go online to search for their next purchase.
‘With rising interest rates adding to the pressure on household budgets, our research shows car buyers are being pragmatic but will still be searching for the best possible value for their money, especially those buying out of necessity.
‘While this expectation to pay more should make some showroom conversations about price easier, dealers will need to be sympathetic to the financial pain facing many customers.
‘Structuring deals around affordable budgets and monthly payments will be increasingly important and could even open up conversations about alternative funding methods, such as car subscriptions, to ensure the best possible outcomes for customers.’
