One in five drivers looking for their next car, as financial concerns ease

Consumer confidence is starting to improve, with one in five adults actively looking for their next car, according to research by AA Cars.

Yonder conducted an online sample of 11,279 UK adults between June 13 to July 1, 2024. Data was weighted to be representative of the population of the UK.

James Hosking, director of AA Cars, said: “While economic challenges persist, some green shoots of recovery are starting to appear.

“With inflation now at 2% and average wages starting to outpace it, there's a glimmer of hope for many UK households, even as cost of living pressures remain significant.”

Of those who had previously shied away from making a purchase, nearly a third (31%) said it was because they needed to prioritise other financial obligations, such as a mortgage or loan repayments and 28% directly attributed their decision to the cost of living crisis. 

In total, financial anxieties had affected the buying decisions of 24% of respondents and 23% stated they were too short of money to make a purchase.

Although some financial concerns persist among UK drivers, the UK used car market demonstrated resilience in Q1 2024, with sales up 6.5% compared to the same period in 2023.

This marked the fifth consecutive quarter of growth, propelling the second-hand market to its strongest start to the year since 2019 and a five-year high.

Hosking added: “As the economic situation gradually improves, we're noticing a cautious increase in consumer confidence. The used car market continues to offer a practical solution for those looking to balance their needs with budget constraints.”