Nearly half of all car buyers plan to spend more on their next purchase.
eBay Motors Group’s latest Consumer Insight Panel study has found 46% of new and used car buyers expect to pay more for their car. However, this expectation rises sharply to 66% for buyers currently searching for their next car or planning to search within the next month.
Only 13% of buyers expect to spend less on their next car, while 41% expect to spend about the same as they did on their current car.
Overall, the prospect of spending more is highest among men (48%), under 35s (50%) and those living in London (60%).
The research also identified a significant difference in how much more buyers expect to spend, according to how they pay for their purchase.
Outright purchasers think their next car will cost 22% more than their last one, while those opting for monthly payments only think they will spend 7% more.
Used car buyers think their next car will cost 28% more if they purchase it outright, compared to 7% more for monthly payments.
For new car buyers the extra cost is more evenly balanced at 10% more for outright purchases and 8% more for monthly payments.
Lucy Tugby, marketing director of eBay Motors Group, said: “The price inflation of new and used cars is a reality and our research shows in-market car buyers are factoring this in when they go online to search for their next purchase.
“With rising interest rates adding to the pressure on household budgets, our research shows car buyers are being pragmatic but will still be searching for the best possible value for their money, especially those buying out of necessity.
“While this expectation to pay more should make some showroom conversations about price easier, dealers will need to be sympathetic to the financial pain facing many customers. Structuring deals around affordable budgets and monthly payments will be increasingly important and could even open up conversations about alternative funding methods, such as car subscriptions, to ensure the best possible outcomes for customers.”
