Cost-of-living pressure pushes more people into used cars

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The cost of living crisis in the UK is pushing more car buyers into the used market.

Research by V12 Vehicle Finance, part of Secure Trust Bank, shows that only 75% of those currently driving a new car intend to buy again at a later date, with 17% hoping to buy a previously registered vehicle and 8% planning to buy used vehicle. .

The survey of 1,000 consumers also highlighted the correlation between household income and the age of the vehicle they last purchased.

While 60% of consumers earning less than £25,000 per year buy used, that figure drops to 40% in the £65,000 to £75,000 bracket and to just 27% of those earning more than £95,000.

Research of 1,000 customers showed that 37% intend to use the dealer’s funds to finance their next purchase, compared to 31% who used it to finance their previous vehicle.

V12 Vehicle Finance said it saw growth in demand for equity financing in January this year, as dealers appeared to respond to the increased appetite for used cars.