Nearly half of buyers plan to spend more on their next car – survey

Close to half of car buyers are planning to spend more on their next purchase than they did on their current vehicle, a new survey has discovered.

eBay Motors Group spoke to 2,005 new and used car buyers as part of its Consumer Insight Panel and found that 46 per cent of in-market buyers are now predicting that they’ll pay more for a car than they would have done previously.

The trend was most prominent among new car buyers, with 66 per cent of them prepared to spend more.

In contrast, just 13 per cent of those spoken to predict that they’ll spend less on their next car, while 41 per cent plan to spend the same amount on their next car as they did for their current vehicle.

Overall, the plan to spend more is highest among men – 48 per cent – under 35s (50 per cent) and those who live in London (60 per cent).

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.”

The research also highlighted a substantial difference in how much more people plan to spend in relation to how they pay for their purchase.

For instance, those buying their vehicle outright predict that it’ll cost 22 per cent more than their last one, while those opting for monthly payments instead will spend seven per cent more.

This difference is stronger among used car buyers who think that their next car will cost 28 per cent more if they buy it outright, compared with seven per cent for those who plan to pay via monthly instalments.