Motorists ‘forced’ to exchange car or switch to pay-monthly schemes

The cost-of-living crisis is forcing motorists to consider changing to an alternative car or cut day-to-day spending to stay on the road, carwow research shows.

Four-in-10 (40%) say their approach to motoring has been affected by the cost-of-living crisis, with over a third (36%) now more likely to consider paying monthly for their next car rather than buying outright.

Furthermore, 27% are considering selling or exchanging their current car to save money, and 24% admit that, while they would normally consider buying a new car, they can currently only afford to buy used.

Hugo Griffiths, consumer editor at carwow, said: “The cost of living remains stubbornly high for millions, and how we buy and run our cars is not immune from the impact of the current crisis.

“The jump in petrol prices may be just one factor weighing on motorists, but the scale of the increase in a litre of petrol or diesel gives a good indication of what drivers are dealing with.”

Over two-thirds (67%) stated that owning and running a car is a necessary cost. Of those who say the cost-of-living crisis has had an impact, 13% are already cutting back on day-to-day spending so they can afford to run their vehicle.

Carwow also found that 22% of motorists listing their cars for sale via its platform were doing so specifically to cut costs. Of these, over half (55%) are looking to downgrade to a cheaper model, while 45% are not planning to replace the vehicle.

The top reasons why motorists are selling their car via Carwow are: ‘To upgrade to a bigger/better vehicle (38%), ‘It is an additional car and I no longer need it’ (15%), ‘To switch to an electric car’ (11%), ‘To cut costs – I will replace it with a cheaper car’ (12%), ‘To cut costs – I will not replace it’ (10%), ‘It is my only car and I no longer need it’ (10%) and ‘Other’ (10%).

Brayleys Cars, Hendy Group and Perrys have recently partnered with Karzoom to offer car subscription services. Find out more about when car subscriptions will become mainstream