Six in ten (60%) motorists plan to buy or lease a car within the next twelve months, according to the latest ‘The Road Ahead’ research from Close Brothers Motor Finance. And this number could rise as one in 13 (8%) haven’t decided yet/don’t know.
A quarter (24%) of UK adults say they’ll buy or lease a used/second-hand vehicle in the next 12 months. And car dealers could see this figure increase as more than one in 10 (11%) say they are undecided, so the vehicle could be either new or used. Almost a quarter (23%) of consumers say they’ll opt for a new car over a used one.
When it comes to fuel type, petrol cars continue to top the list despite the looming ban on new petrol and diesel vehicles, with almost a third (32%) of those surveyed claiming they’re going to opt for one. And one in eight (12%) will look to get a diesel car in the next 12 months. Hybrid vehicles came in as the second most preferable option, with a quarter (26%) looking to purchase or lease one, whilst one in seven (14%) will opt for a pure electric vehicle showing the desire to switch to electric.
Men are far more likely than women to have firm buying plans for 2023, with more than two in three (69%) men intending on buying or leasing a car in the next 12 months compared to 50% of women. Similarly, almost a third (30%) of men plan on opting for a new car, almost double the percentage of women (16%). Men are also more certain on which fuel type to opt for. Just 11% are unsure compared to 18% of women. The research also found men were more likely to choose an electric vehicle compared to women (17% vs 11%).
Demand also rises significantly amongst younger drivers, with 28% of 17–24-year-olds and 30% of 25-34-year-olds intending to buy a new car and 32% and 33% planning to buy used. This compares to just one in six (16%) over 55s who intend to buy a new car and the same number 16% who intend to buy used.
Lisa Watson, Director of Sales at Close Brothers Motor Finance, said: “The demand in the car market has been strong throughout 2023, and is beginning to return to pre-Covid levels. Sales, as well as production, are accelerating - latest figures show the UK new car market achieved an eighth consecutive month of growth. And this trend looks set to continue with more car owners planning to buy a car than not.
“The increase in the popularity of AFVs indicates how the consumers are taking great steps on the road that leads to the eventual phasing out of petrol and diesel vehicles. Although the popularity of petrol remains in place for consumers for now.
“The second-hand market is seeing an influx in demand as more people seek affordable options. But in order to meet this demand, the onus remains on car dealers to utilise available insight to stock forecourts and meet fluctuating demand. And that may remain difficult following a year in which slow manufacturing hindered the new car market and thus the second-hand market. Car-buyers may need to be prepared to shop around if there is limited stock or long waiting times for the car they want, and speak to car dealers to ensure that they’re getting the right model, engine type and finance option for them.”
