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Most drivers say cost of living will influence their next car purchase

By Mathilda Bartholomew | September 5, 2024

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One-third of drivers are considering cheaper cars, and the same percentage prefer monthly payment plans over buying outright

Most drivers say cost of living will influence their next car purchase

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.

Save 12.5% on GAP Insurance here using code REGITGAP.

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.

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