Cost Of Living Crisis Affects 70% Of Car Purchases
New research has revealed that the rising cost of living in the UK has affected 70% of car purchases in 2022 thus far…
Cost Of Living Influences Car Purchases
Research conducted by eBay suggests that the cost of living crisis is having a major impact on car purchases in the UK. Indeed, it suggests that up to 70% of purchases are now influenced in some way by soaring costs. eBay Motors Group surveyed 3,000 motorists who had expressed interest in purchasing a new or used vehicle.
Nearly one if five of the respondents (19%) said they’d delayed a purchase because of the crisis. Of those who still intend to make a purchase, 29% said they’d now go for a cheaper option. Another 20% said their choice would be to go for a smaller vehicle, too. Some 23% of the respondents said they were now reconsidering whether they should make a purchase at all. Finally, soaring fuel costs have also had a significant impact on consumers, too, with 70% of respondents saying that it was a key consideration.
It’s just another blow for a battered and bruised automotive industry; which have been barraged by the likes of Brexit, the coronavirus pandemic and critical supply-chain issues.
A Pragmatic Shift
Dermot Kelleher, head of marketing and research at eBay Motors Group, commented on the research. He said, “our research shows how the cost of living crisis is having a real impact on the decisions made by a significant majority of car buyers”.
He continued, “while for most of these buyers it will mean a pragmatic shift to cheaper and smaller cars, which in itself may be challenging as advertised prices for used cars are still tracking up 20 percent, what is apparent is that one in five buyers will delay their next purchase”.
Precisely how car manufacturers will respond to the change in consumer behaviour remains to be seen. But it’s likely to lead to fierce competition and elaborate ways of cutting costs. This may entail cutting back on in-car technologies and prioritising the most profitable models over niche segments. It could also have an impact on electrification, which is often not as lucrative a strategy for companies as pursuing ICE models.
Electric Vehicles: The Most Common Myths Debunked – https://autoserveclub.co.uk/blog/electric-vehicles-the-most-common-myths-debunked/
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