Research by credit reference agency Equifax
among customers purchasing copies of their own credit reports
indicates that a lack of increased earnings, combined with rising
inflation, will have ramifications for consumer confidence in the
motor retail market.
Three-quarters of respondents to the survey,
conducted last month, reported that they had not received a pay
rise so far this year, with 23% having had their income
cut.
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More than half of consumers surveyed also
believed that the recent tax and benefit changes had affected their
family finances, with over 15 percent believing that they would be
more than £500 worse off as a result.
Furthermore, over a third of respondents to
the survey said that they were using their car less – and walking
more – to manage their day-to-day finances better. And around
10% had sold their car or reduced the number of cars owned by their
family.
Equifax’s Neil Munroe said, “It’s a sobering
picture for the motor finance sector, especially as, according to
data we collected earlier this year, it appears that consumers are
more reliant on credit than ever. Nearly two-thirds of credit
card users said they use them for everyday expenses, although only
half pay off all their credit card debt each month.”
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