Despite the wide ranging announcements covering £40bn of tax rises announced in the Autumn Budget, most consumers say their car buying plans remain unchanged, according to the latest consumer research commissioned by MOTORS.
Nearly two-thirds (64%) of the 1,000 car buying decision makers polled by Insight Advantage said their car buying plans had not changed because of the budget. Overall, nearly a quarter (24%) plan to buy in the next three months, 33% in the next six months and 50% in the next 12 months.
As a result of the budget, 20% will now buy a car later than planned, while 16% expect to buy sooner.
Half of buyers (50%) say their original plans to buy new, nearly new (under two years old) or used have not changed. For those who have changed their plans, 18% say they are now more likely to buy used, 17% new and 15% nearly new.
Furthermore, most buyers (61%) now expect to spend the same on their next car as they would have before the budget, with the balance evenly split between those who will spend less (20%) and those who will spend more (20%).
Looking at the likely fuel choice of their next car, 42% of buyers say their plans are unchanged. However, for those now reconsidering their choice 29% say they are more likely to buy a hybrid and 27% more likely to buy an EV.
“The long lead up to the Autumn Budget undoubtedly dented the confidence of many consumers. However, our research shows the resilience of car buyers with nearly two-thirds saying their purchasing timeline plans are unchanged following the Budget,” said Phill Jones, Chief Operating Officer of MOTORS.
“The research also highlights an uplift in EV consideration, even though budget incentives were mostly aimed at company car drivers. Likewise post-Budget hybrid consideration has grown, undoubtedly prompted by running cost savings and ease of transition.
“For those considering a change of fuel type for their next car, 42% said they are now more likely to buy either an EV or hybrid, compared to 23% who said they were less likely to buy either. We believe this will be encouraging news to dealers planning their stock mix over the coming months,” said Jones.
