New research tied to September’s car registration data reveals that almost 73% of UK drivers are reassessing their car buying plans due to the rising cost of living and vehicle prices.
Over 40% of drivers are concerned about keeping up with monthly payments on their car finance.
Among those feeling the financial pinch, nearly half (47%) are planning to look for better deals, indicating that car makers and dealerships will need to offer competitive prices this Autumn. This study, commissioned by CA Auto Finance, a UK branch of CA Auto Bank, delves into car financing choices and consumer trends.
The research also shows that one-third (33%) of drivers are considering cheaper cars, and the same percentage prefer monthly payment plans over buying outright, pointing to a growing interest in flexible financing.
When it comes to car financing, 51% of drivers prioritise competitive interest rates, followed by payment flexibility (43%) and trust in their finance provider (36%).
Christian Gorton, Marketing Director at CA Auto Finance, noted: “Despite the recent Bank of England interest rate cut, drivers continue to prioritise competitive pricing and flexible payment options. With a wide range of financing solutions available, we are well-positioned to support customers whether through ownership or leasing.”
The study also highlights a demand for additional finance products, with 45% of drivers interested in roadside assistance, 36% in MOT insurance, and 31% in GAP insurance, despite a temporary halt in GAP insurance sales earlier this year.
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When it comes to buying preferences, 86% of drivers want to see a car in person before buying. However, digital experiences are increasingly important, with 40% of drivers prioritising it over price. This trend is even stronger among younger drivers, with 56% of 18–24 year-olds favouring a better digital experience, compared to just 14% of those aged 55 and over.
