Young motorists drive demand for used cars
Millennial motorists (aged 22-30) are more likely to choose second hand cars over a new car, according to new research from Close Brothers Motor Finance. 46% of millennial drivers said they were likely to go for a used car versus 38% who would pick a new car (38%) – the only age group more likely to buy second hand than new.
Almost 2 in 5 (37%) drivers under 30 will use some form of finance to purchase their car. This age group is the least likely to use cash – 45% compared with 73% of over 66s.
Millennials are the most likely to say Brexit has had an impact on their decision to purchase a car in the next three years. 38% said that Brexit has had a negative impact, with 22% saying it will likely force them to opt for a cheaper model of car. 22% also said they were more likely to delay buying a car as a direct result of Brexit.
Other barriers to car buying amongst this age group include increasing vehicle costs (36%), the cost of fuel (34%) and increasing vehicle taxes (35%). Meanwhile 39% of the eldest cohort surveyed (46-66+) said that none of the options listed would put them off buying a car this year.
Turning to the environment, three quarters (74%) would actively avoid purchasing a diesel car as their next vehicle as a result of the tax increase in April 2018. This is far higher than their parents’ generation (66% of over 45s). A quarter are considering either an electric or hybrid vehicle as their next purchase.
Sean Kemple, Director of Sales at Close Brothers Motor Finance, commented: “The next generation of car buyers is entering a different world to the ones their parents encountered at the same age. Climate change, political and economic uncertainty, not to mention the concept of ownership have had an effect on the decisions they are now making. Cost is the most pressing issue for this age group, but closely followed by issues that aren’t to do with money – such as the environment.
“From a dealer perspective, it is up to us to meet this new list of demands presented to us. This is done through an affordable and attractive range of stock, good financing options, and informed advice and guidance tuned to their specific needs.”