7:21 am, November 1, 2024
Consumers still remain positive towards car buying despite this week’s Budget revealing £40bn of tax rises, a new survey has said.
Latest consumer research from used car marketplace Motors shows most consumers’ buying plans remain unchanged.
The company quizzed 1,000 people and found nearly two-thirds, 64%, said their car buying plans had not changed because of the budget.
Overall, nearly a quarter (24%) plan to buy in the next three months, 33% in the next six months and 50% in the next 12 months.
As a result of the budget, 20% will now buy a car later than planned, while 16% expect to buy sooner.
Half of buyers (50%) say their original plans to buy new, nearly new (under two years old) or used have not changed.
For those who have changed their plans, 18% say they are now more likely to buy used, 17% new and 15% nearly new.
Moreover, most buyers (61%) now expect to spend the same on their next car as they would have before the budget, with the balance evenly split between those who will spend less (20%) and those who will spend more (20%).
Some 42% of buyers say their plans are unchanged when it comes to fuel type, too. However, for those now reconsidering their choice 29% say they are more likely to buy a hybrid and 27% more likely to buy an EV.
Phill Jones, chief operating officer of Motors, said: ‘The long lead up to the Autumn Budget undoubtedly dented the confidence of many consumers. However, our research shows the resilience of car buyers with nearly two-thirds saying their purchasing timeline plans are unchanged following the Budget.
‘The research also highlights an uplift in EV consideration, even though budget incentives were mostly aimed at company car drivers. Likewise post-Budget hybrid consideration has grown, undoubtedly prompted by running cost savings and ease of transition.
‘For those considering a change of fuel type for their next car, 42% said they are now more likely to buy either an EV or hybrid, compared to 23% who said they were less likely to buy either.
‘We believe this will be encouraging news to dealers planning their stock mix over the coming months.’
