The appetite to purchase a car is stronger than it was 12 months ago, with 18% of in-market decision makers looking to buy within the next three months, up 5% year-on-year.
Additionally, almost half (44%) expect to buy before the end of the year, up 3% on 12 months ago.
The findings come from MOTORS’ latest independently researched Consumer Insight Panel, which polled the views of over 2,000 consumers about their car buying plans.
Although outright purchase will be the most popular form of payment among in-market buyers, the research has identified a growing shift towards monthly payments.
Overall 61% of owners funded their current car through outright purchase but this will drop to 53% in the next buying cycle. While those paying monthly, through finance or lease arrangements, will grow from 28% to 33%. Monthly subscription will also grow from 11% to 15%.
The research also revealed that buyers are currently paying on average £262 per month for vehicles aged over two years old when purchased and £306 for nearly-new cars aged up to two years old.
“Our Consumer Insight Panel research shows just how much stronger the intent among used car buyers is to buy than it was this time last year, with many already searching online for their next purchase,” said Lucy Tugby, Marketing Director of MOTORS.
“The groups saying they are most likely to buy are those aged under 35, typically with changing requirements of young families, and older parents whose children have left home. This suggests opportunities for dealers considering stocking medium to large cars, especially SUVs, for the former and downsizing or treat cars for the latter.
“Importantly, our research also highlights the opportunity for dealers to increase finance penetration to support consumers’ budgets. We recommend that dealers highlight payment options and monthly payments from online adverts through to in-store promotion,” said Tugby.
