Unexpected expenses take priority over car purchases
More than half of consumers are saving their money for unexpected expenses instead of buying another car.
February’s Startline Used Car Tracker has revealed fragile confidence among UK customers, with 52% saying they are keeping their cash for a ‘rainy day’ instead of updating or upgrading their cars.
The data found that 41% are wary after high inflation in recent years, 34% believe taxes are rising too quickly, and 31% don’t think the economy is growing like it used to.
Additionally, 30% believe the economy could crash at any moment, 29% say their wages aren’t keeping up with rising prices, and 22% believe their finances haven’t been healthy since the pandemic.
Low consumer confidence
Paul Burgess, CEO at Startline Motor Finance, said: “Research we undertook in January showed dealers believe low consumer confidence is the biggest single factor stopping motorists swapping their car this year. We wanted to get a deeper insight into how potential car buyers are feeling and these new responses paint a vivid picture.
“What we are seeing is a large proportion of people feeling financially battered and bruised by the financial events of the last few years. It’s clear that the high inflation seen in the early 2020s has left them deeply wary of what might come next and the majority are choosing to save for a rainy day rather than look for a new vehicle.
“You can feel a lack of trust in their attitudes. It’s notable that around a third believe the economy could simply crash at any moment. How long it will take for these feelings to ease is very difficult to predict but they are unlikely to change overnight.”
