Most consumers remain committed to their car buying plans despite significant tax rises in the recent Budget.
According to new research by Motors and Insight Advantage, nearly two-thirds (64%) of 1,000 surveyed car-buying decision-makers say the budget has not affected their intentions, with nearly a quarter (24%) planning to purchase within three months, and half intending to buy within the next year.
Only 20% have delayed purchases, and just 16% expect to buy sooner. Spending expectations are similarly steady, with 61% planning to allocate the same budget for their next car, despite the economic impact.
Car type preferences also remain relatively stable; however, 29% of those reconsidering fuel options are now leaning towards hybrids, while 27% are more likely to opt for electric vehicles.
“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.