7:07 am, February 23, 2023
More than a fifth of drivers plan to buy a new or used car this year – the same proportion as last year, despite the cost-of-living crisis.
That’s according to new research from AA Cars, whose poll of 15,739 adults found that 22 per cent of them were in the market for a car, even though many people are having to tighten the purse strings.
But the proportion of those looking to buy a new or used EV has fallen from 25 per cent in 2022 – when fuel prices soared to record highs – to 18 per cent in 2023 as electricity prices continue to rise.
AA Cars said that in the last three months of 2022, EVs accounted for 4.8 per cent of searches on its used car platform – down from 11.2 per cent over the same period in 2021.
One reason could be the steady fall in fuel prices just as household electricity prices are set to rise sharply in April as government support is wound down, said AA Cars.
After strong price inflation for much of 2022, price growth for the UK’s most popular second-hand cars slowed sharply at the end of the year, according to the latest AA Cars Used Car Index.
Average prices for the top 20 most-searched-for cars on the AA Cars platform rose by just 0.2 per cent in the fourth quarter on an annual basis, versus a 9.2 per cent increase in the previous quarter – good news for those looking for a second-hand car this year, it said.
AA Cars director Mark Oakley said: ‘It is reassuring for the car industry that so many drivers intend to buy a vehicle this year.
‘However, dealers may need to carefully consider how they select their stock, as stretched household budgets mean some buyers are making different purchasing decisions to last year.
‘AA Cars search data shows that drivers are showing particular interest in smaller cars that are affordable to buy and cheap to run.
‘This may also be behind the cooling appetite for EVs, as they typically cost more upfront than their petrol or diesel equivalents.
‘With prices starting to fall on some of the UK’s most popular used models, buyers will also be looking at where they can get the best value for money.’
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