War in Iran cutting consumer spending on vehicles
New research has found that 73% of drivers say their finances have been stretched by the impact of the war in Iran.
July’s Startline Used Car Tracker revealed that 33% of motorists believe it will be at least six months before their financial situation recovers, with 25% expecting the strain to last more than a year and 10% more than two years.
Meanwhile, higher fuel, energy and food prices mean that 36% are less likely to replace their current car, 36% are looking for cheaper insurance and 25% are deferring repair of minor body damage.
Further, 19% are spending less on servicing, 15% are using their cars less, and 11% are postponing tyre replacements. Four per cent have said they may even have to sell their vehicle.
Inflation
Paul Burgess, CEO at Startline Motor Finance, said: “Following the inflation of the post-pandemic period and the negative impact of Brexit, many feel the war in Iran is yet another problem and consumer confidence is currently at its lowest point for several years.
“It seems they feel wary and vulnerable, and this is having a direct impact on their motoring expenditure. Seeing people defer servicing and tyre replacement, which could directly impact safety, is a concern.
“Also, while the four per cent who say they may have to sell their car is a low percentage, it just shows how marginal some people’s finances have become Their ability to handle any kind of economic shock is very low.”
