Economic uncertainty has driven over a third of drivers – the equivalent of eight million Brits – to postpone or hold off buying a car altogether, according to a new report published today by Close Brothers Motor Finance.
Despite this economic uncertainty, the report found that 82 per cent of current drivers are planning on purchasing a vehicle within the next three years; equating to almost 32 million new or used cars being sold in the UK by 2021.
This is a significant increase on last year’s findings, when 71 per cent of drivers planned to purchase a car in the next three years.
The Britain Under the Bonnet report looks at consumers’ attitudes and car buying behaviours – along with views from dealerships across the country – to give a comprehensive view of the UK’s motor industry in 2018.
It found that Brexit isn’t the only thing dampening consumer appetite – rising inflation, the increasing cost of vehicles and fuel, and escalating vehicle taxes are other barriers to purchasing a car in 2018.
Rebecca McNeil, Chief Executive Officer at Close Brothers Motor Finance commented: “The motor industry is evolving, but it remains a stalwart of the British economy. Dealers and manufacturers are having to adjust to economic realities, but dealers are positive, because they see demand for cars persisting. Increased innovation and flexibility, as well as having the right cars on the forecourt will allow them to make the most of the trend towards used cars and maximise the business opportunities that continue to exist in this more competitive market.”