CONSUMERS are least likely to buy expensive items like cars in the coming months a new survey has found.
The results of GfK NOP Social Research’s latest survey of consumer attitudes means car dealers might be facing even more hard times in future months.
The firm has found that consumers are now less likely to buy purchases with big price tags like cars, falling by 22 points to minus 29.
The news won’t be good for dealers across the UK, and might mean manufacturers extending their VAT-free deals to get customers through the door.
Gfk NOP’s managing director, Nick Moon, said: ‘The VAT increase is the first of the Government’s austerity measures that has had a widespread impact on consumers, and it seems to have hit people’s economic confidence hard, especially as the biggest drop was in consumers’ appetite for major purchases.
‘With inflation on the up and the full force of the cuts yet to hit, these figures could be the beginning of a very painful period.
‘There is a chance that these figures represent a post-Christmas blip but even if there is a rally in February it is extremely unlikely that it will reverse this massive drop.’