In response to the rising cost of living, UK drivers are opting to trade in their pricey and gas-guzzling automobiles and downsize to less expensive and more fuel-efficient models.
As drivers trade in their pricey BMWs and Audis for old, mid-range Volkswagens and Fords, they can pocket the difference and purchase hatchbacks, which are growing in popularity.
In the last two months, fewer customers have inquired about leasing cars, and those who do are searching for better bargains, according to car dealerships.
As the cost of living continues to rise, more drivers are anticipated to search for methods to save costs on energy and other expenses.
According to Lisa Watson of Close Brothers Motor Finance, a company that finances cars, consumers are becoming more concerned about the rising cost of electricity, she told The Observer.
Because obviously customers are feeling the squeeze, she added, “We’re having folks coming from more costly automobiles transferring into more fuel-efficient ones.”
These changes have been developing over the last two to three months, but they are now starting to stand out more.
She anticipates that consumers will continue to finance their purchases of automobiles rather than pay cash, although comparison websites for leasing vehicles have shown a decline in queries.
According to Auto Lease Compare, there were 17% fewer inquiries in September of last year.
Drivers who had the money to lease or purchase a luxury automobile are now second-guessing their choices as a result of the dramatic increase in inflation and the rising cost of living.
‘There is a definite trend towards consumers seeking for cheaper options since they are worried about their outgoings,’ LeaseLoco Chief Executive John Wilmot told The Observer.
People are worried about paying their energy costs, so they don’t want to overextend themselves with automobile payments. So it seems sense that they would strive to cut down on that expense.
People who say, “I want or need a new automobile for the dependability element, but I can’t have the premium brand that I formerly had, so I’m going to downgrade,” make up a sizable portion of the population.