Research released in connection with September’s new car registrations reveals that nearly three-quarters (73%) of UK drivers surveyed are rethinking their car purchase strategies due to the cost of living and rising vehicle prices.
More than two in five (42%) expressed concerns about making monthly payments on their car finance agreements.
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Of those affected by these financial pressures, almost half (47%) indicated plans to seek better deals, underscoring the need for manufacturers and dealerships to offer competitive pricing as they enter the Autumn trading period.
The study, which explores car financing decisions and consumer preferences, was commissioned by CA Auto Finance, a UK subsidiary of CA Auto Bank, a major player in the European vehicle financing and leasing market.
The findings also show that a third (33%) of UK drivers intend to buy a cheaper car, and the same proportion are considering monthly payment plans rather than purchasing outright. This highlights a growing demand for flexible financing options.
Competitive interest rates are a key concern for more than half (51%) of respondents when choosing a new car, followed by payment flexibility (43%) and trust in their finance provider (36%).
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By GlobalDataCA Auto Finance, with nearly three decades of presence in the UK, offers a variety of retail finance and insurance products through partnerships with numerous original equipment manufacturers (OEMs) and over 600 used car dealerships.
Christian Gorton, Marketing Director at CA Auto Finance, said: “Despite the recent interest rate cut by the Bank of England, it’s no surprise that drivers are prioritising competitive pricing models and payment flexibility when financing their cars. With a wide range of finance solutions, either through ownership or leasing products, CA Auto Finance offers a product range to suit most customers.”
The research also indicates interest in additional finance products, with 45% of drivers interested in roadside assistance, followed by MOT insurance (36%) and GAP insurance (31%). This is notable despite the earlier suspension of GAP insurance sales, showing continued demand for the product.
Regarding purchasing preferences, 86% of drivers value physically viewing a car before buying. However, digital experience is increasingly important, with 40% of respondents prioritising it over price competitiveness. This trend is more pronounced among younger drivers, with 56% of 18–24 year-olds favouring better digital experiences, compared to just 14% of those aged 55 and over.
Partnership
In related news, CA Auto Finance has also announced a new partnership with Norton Motorcycles, the renowned British motorcycle manufacturer. This collaboration represents a significant milestone for CA Auto Finance as it ventures into the two-wheeled vehicle market, aiming to provide tailored financial solutions to Norton’s sales network and customers across the UK.
As part of the partnership, CA Auto Finance will introduce Norton Motorcycles Financial Services, a brand dedicated to offering a range of finance products specifically designed for Norton customers and retailers.
