More than a third of drivers would delay buying a car due to economic uncertainty caused by the pandemic and Brexit, according to the Britain Under the Bonnet report from Close Brothers Motor Finance.
Conversely, 12% of drivers have brought forward their plans, with this figure rising to 25% for 17–24-year-olds.
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According to the report, the divergence among car owners is largely attributed to one factor – age. Young people have been disproportionately hit by unemployment and financial health issues arising from Covid-19.
The statistics say it all – 10% of individuals aged 17-24% believe economic uncertainty has not impacted the way they think about buying a car. This figure increases to 45% among drivers aged 56 and over.
Reflecting the polarised nature of today’s customers, the report also highlights the variation across the new and used segments. Of those surveyed, 14% of drivers are more likely to buy a used car and 12% would opt for a cheaper model.
Delving into the trends, Seán Kemple, managing director of Close Brothers Motor Finance, commented: “Some customers will be relatively unchanged in their car-buying and usership habits this year, but others will have made drastic changes to their lives and their plans for the future.
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By GlobalData“More customers than before are likely to be classed as vulnerable, having lost their jobs, seen a fall in their disposable income, or experienced health problems.”
Explaining the implications for the motor finance sector, Kemple continued: “This means the sales process will need to be more personalised, and more considered – and dealers might need more hands-on support from their finance partner to ensure the sale is in the best interests of them and their customers.”
Changes in driving habits
In its fifth edition, Britain Under the Bonnet also highlights trends in driving habits. Across all age groups, 37% intend to run their cars more often this year, dominated by the 17–24-year-olds category, with a figure of 65%.
The main factors driving such statistics are public transport (20%), increased driving in the workday (10%) and caring for vulnerable relatives (9%).
On the other end of the spectrum, 33% of drivers will drive less, most notably among the over 55’s with a figure of 39%. According to the report, this is attributed to leaving the house less and a lower expectation to commute.
Those living in cities were 9% more likely to drive in order to avoid public transport, while those living in rural areas were 14% more likely than their city counterparts to drive less due to not leaving the house.
