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Drivers are looking to switch to finance or swap car to save money as cost-of-living crisis tightens grip

  • More than a third are considering paying monthly for next car rather than buying, poll finds
  • A quarter say they can now only afford to buy a used car rather a new one
  • Carwow survey finds more than a quarter of drivers may sell or exchange current car to save money

Time 8:32 am, January 31, 2023

Drivers are considering switching to a pay-monthly deal or even exchanging their current car because of the ongoing cost-of-living crisis.

That’s according to a new survey into motoring habits, which also found that others are cutting day-to-day spending just to stay on the move.

Online marketplace Carwow quizzed 1,434 people about the impact of the crisis on their plans to buy or sell a car and found that more than a third were more likely to consider paying monthly for their next car rather than buying it outright.


In addition, 27 per cent would consider selling or exchanging their current car to save money, while a quarter admitted they could now only afford to buy a used vehicle when normally they’d have considered a new one.

Two in three stated that owning and running a car was a ‘necessary cost’ while 13 per cent were cutting back on their routine day-to-day spending so that they could afford to run their vehicle.

Carwow consumer editor Hugo Griffiths said: ‘The cost of living remains stubbornly high for millions, and how we buy and run our cars is not immune from the impact of the current crisis.’


He added: ‘The jump in petrol prices may be just one factor weighing on motorists, but the scale of the increase in a litre of petrol or diesel gives a good indication of what drivers are dealing with at the moment.’

Although the prices of petrol and diesel have fallen from their respective highs of 191.55p per litre and 199.22p per litre in July, the current figures of 148.79p per litre for petrol and 171.64p for diesel are still increases of 29 per cent and 43 per cent respectively since January 2021.

In addition, fuel retailers are being slow to pass on wholesale price drops, according to the RAC.

 


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Jack Evans's avatar

Jack Evans is the head of editorial for Car Dealer parent company Blackball Media. An experienced motoring journalist, he covers the latest car launches, motoring news and produces a variety of features for this website.



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