Annual average car costs have risen by almost £1,000 – an increase of around 20% – since the start of 2022. November’s Startline Used Car Tracker research suggests motorists’ annual spending on fuel, insurance, servicing and car finance had risen by £80 a month.
The biggest single increase was seen in fuel at £37 per month but insurance and motor car finance both rose by around £20 per month.
Paul Burgess, CEO at Startline Motor Finance, said: “For a lot of drivers, an annual £960 hike in motoring costs is money that they can’t easily find. Last month, our research showed that one in four families were thinking of selling their car or perhaps downsizing from two cars to one – and this really underlines why.
“The latest finding puts into perspective just how much rising motoring costs are affecting ordinary people who need their car to simply get to work, take their kids to school and drive to the supermarket.”
Respondents also claimed their worsening personal finances would influence the decision-making when buying their next used car with running costs at 66%, the cost of living at 65%, inflation at 35% and job security at 22% toppig their concerns.
Paul said: “It’s evident that personal finances worries are increasing. More and more, people are feeling the pressure of the cost of living crisis and thinking about what their next used car will cost to buy and run.
“However, it’s also worth mentioning that the used car market remains in good shape. We’re seeing no slowing of demand as a company and our survey also shows little change in how likely people say they are to buy a used car. It’ll be interesting to see if and how this changes over the next few months as the cost of living crisis bites deeper.”
The Startline Used Car Tracker is compiled for Startline Motor Finance by APD Global Research, well-known in the motor industry for their business intelligence reporting and customer experience programs. This month, 305 consumers and 59 dealers were questioned.
Founded nine years ago, Startline is a flexible motor finance specialist and employs 170 people at its Glasgow headquarters. It works with around half of the UK’s top 50 franchise dealers by turnover as well as 70% of the top 50 independent car retailers, and currently accounts for more than 2% of the UK used car motor finance sector by volume.
About the Startline Used Car Tracker
The Startline Used Car Tracker was launched in April 2022 to produce essential attitudinal data about the used car sector over time. Each month, it asks consumers about their propensity to buy, fuel choices and the factors that will affect used car purchases, as well as questioning dealers about their feelings regarding the prospects of the market, the challenges facing them and their online offering.
The research is conducted for Startline by APD Global Research, well known in the motor industry for their business intelligence reporting and customer experience programs.