Consumer confidence sinks as UK economic forecast downgraded

Startline Motor Finance has found that consumer confidence among used car buyers has fallen to its lowest level in six months.

Its Used Car Tracker revealed that 48% of motorists are positive about the idea of buying a used car compared to 59% who were positive in August. This is based on a poll of 302 consumers and 58 dealers.

This comes after the EY ITEM Club downgraded its forecast for economic growth during 2025 from 1.5% to one per cent after a weaker than expected end to 2024. The UK economy grew 0.8% in 2024.

Paul Burgess, Startline Motor Finance chief executive, said: “There’s a general feeling of negativity around the economy at the moment and this appears to be feeding through into used car buyer sentiment, with quite a substantial fall in confidence over the last six months. However, there is some nuance to this picture.

“Largely, people appear to be moving from feeling positive to neutral about the prospect of buying a car, rather than becoming negative. This is perhaps reflective of the wider economic mood – things aren’t bad by most measures, they just don’t necessarily feel good.”

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