One In Three To Change Car This Year

Thu 24th Feb 2022

As consumer confidence returns to the motoring market, new analysis is predicting a boom of car sales in the UK.

Research by AA Financial Services has found that 32 per cent of British car owners will be looking to swap to another model in 2022. The key findings of the survey, which looked at the opinions of 2,037 drivers found that a growing number of drivers were shunning owning the car outright, in favor of more flexible financing options such as PCP, with only 41 per cent admitting that they were likely to pay the full price up-front. The impact of EVs is having an impact on our car buying with around one in five saying that they want a short-term option before deciding whether they could switch to an electric vehicle in the next few years. The ability to change their car every few years is another reason more are going for flexible payment options, with 27 per cent admitting that they might get bored with their vehicle after three years and want to swap.

Alternative financing options appear to be more popular with the younger generation according to James Fairclough, CEO at AA Financial Services, who said: “The promise of fresh car demand in 2022 is welcome news, following a challenging year for the car industry.

“The impact of Covid and the global shortage of semi-conductors has seriously impacted new car registrations this year, pushing up demand for used cars – with previous AA research suggesting that values of some used cars has risen by up to 57%.

“What we expect to see in 2022 is the second-hand market benefitting from resurgent car demand. We also believe the way people pay for their cars will change and diversify. As people think more about convenience and short-term flexibility, propositions such as PCP and leasing will become more popular. The economic uncertainty of Covid and the transition to electric cars will continue to influence drivers until the traditional notion of paying full-price for a car and keeping it for as long as possible is something for the history books.”