Nearly half of car buyers undeterred by financial constraints, survey reveals

Car rent agent manager holding key of new car giving to woman client after signing good deal agreement contract, renting considering vehicle.

New research indicates that almost half of car buyers (47%) plan to proceed with their next car purchase, despite facing financial constraints.

The State of the Nation survey conducted by JudgeService gathered opinions from 6,524 customers of franchised dealerships.

Other buyers claim that in order to make their next purchase more affordable, they will take rising living expenses into account.

One in ten indicated they would look at a less expensive brand or model, 9% would go from buying new to used, 7% would look at smaller cars but stick with their current brand, and 3% would check out older cars.

Another 7% will consider electric cars (EV) in order to perhaps save money on petrol.

A quarter of buyers, however, are finding the impact on their household budgets to be too high and are extending the lifespan of their present vehicles.

Only 5% of people claim they have given up on changing their cars, though.

Neil Addley, managing director of JudgeService, said: “Our survey shows just how resilient British car buyers are with most saying they will take the rising costs on the chin or mitigate the impact by compromising on what they would typically choose.

“For dealers this means factoring in cost pressures and offering affordable finance options and payment walks for customers considering smaller cars or used cars.

“Even for those buyers who say they’ll delay their next purchase, or abandon it altogether, there’s still an opportunity for dealers to engage with them through highlighting the peace of mind benefits of extended warranties and service plans.”

Addley also thinks that retailers have a chance to keep clients who are willing to shop around for cheaper brands.

“It’s important for dealers to understand what their customers want in terms of used cars.

“Franchised dealers know the makes and models they’re selling against and this should inform what they source for their used car forecourts, otherwise those customers will buy elsewhere,” he said.

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