Majority of drivers say cost of living will impact next car purchase

New research from CA Auto Finance reveals that 73% of UK drivers say the rising cost of living or increasing vehicle prices will influence how they approach purchasing their next car.

The findings come as new car registrations are released for September. Additionally, 42% of drivers expressed concerns about making monthly payments on their car finance agreements.

Among those impacted by financial pressures, nearly half (47%) said they plan to look for more deals, signalling that car makers and dealerships should offer attractive promotions during the upcoming Autumn trading period.

The study, commissioned by CA Auto Finance, a UK subsidiary of CA Auto Bank, also found that a third (33%) of drivers plan to purchase a cheaper car, with the same number opting for monthly payment plans over outright purchases, highlighting a growing demand for flexible financing solutions.

When asked about key factors influencing car financing decisions, 51% of respondents cited competitive interest rates as the top priority, followed by payment flexibility (43%) and trust in their finance provider (36%).

Christian Gorton, marketing director at CA Auto Finance, commented: “Despite the recent Bank of England interest rate cut, drivers continue to prioritise competitive pricing and flexible payment options. With a wide range of financing solutions available, we are well-positioned to support customers whether through ownership or leasing.”

The research also explored additional finance products of interest, with 45% of drivers expressing interest in roadside assistance, followed by MOT insurance (36%) and GAP insurance (31%), despite the latter being temporarily paused from sale earlier in the year.

Consumer preferences for car purchasing were also highlighted, with 86% of drivers insisting on physically viewing a car before purchase. At the same time, 40% prioritised a seamless digital experience, with this figure rising to 56% among younger buyers aged 18-24.

Gorton added: “Dealerships must balance digital convenience with physical showrooms to meet evolving customer needs.”