7:29 am, August 2, 2023
The ongoing cost-of-living crisis is continuing to hit people’s car-buying behaviour.
That’s according to Close Brothers Motor Finance, whose latest Forecourt Foresight survey found that seven in 10 of them said customers wanted cheaper vehicles because they were feeling the economic strain.
Meanwhile, two-thirds of the 144 dealers polled said customers were being more cautious when buying vehicles.
Increasingly high interest rates have been making borrowing more expensive, which added to high inflation meant consumers were altering their car-buying plans accordingly, said Close Brothers.
Also among the findings, 65 per cent of dealers said buyers were cutting back on extras when getting a car to save as much money as possible.
More than half (54 per cent) agreed that more customers were trying to haggle on price, although a quarter (24 per cent) said they hadn’t had any direct experience of it.
Almost half (47 per cent) of dealers said customers were looking for more finance options. But this number could actually be higher as more than a third (36 per cent) neither agreed nor disagreed.
Lisa Watson, director of sales at Close Brothers Motor Finance, said dealers needed to ensure their customers were aware of the finance options available and which best suited their needs, which could make vehicle choice more affordable.
‘There has never been such an important time to support current and prospective customers,’ she said. ‘Consumers are having to alter their buying plans in the face of the current cost-of-living crisis.
‘Not needing to compromise on key features like boot size is so important, and dealers can help people choose the right car for their needs by making them aware of all the finance options that could be suitable.
‘Dealers need to utilise all available tools and data to make sure they are stocking their forecourts to best meet demand and ensure that they are taking the time to understand a buyer’s wish list and tailor suitable finance products to meet their requirements.’
