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Brexit is pushing young motorists into used cars, Close Brothers Motor Finance finds

Used cars

Millennials are the most likely car buying age group to have their purchase effected by the uncertainty surrounding Brexit, with many opting for cheaper used cars.

According to Close Brothers Motor Finance's Britain Under the Bonnet report almost half of car buyers aged 22 to 30 are likely to choose a second hand car, compared to 38% who said they would buy new.

All other age groups surveyed said they were more likely to buy a new car.

Millennials are the most likely to say Brexit has had an impact on their decision to purchase a car in the next three years, according to the Close Brothers survey.

Of those surveyed, 38% said that Brexit had had a negative impact on their car buying decisions, with 22% saying it will likely force them to opt for a cheaper model of car. 22% also said they were more likely to delay buying a car as a direct result of Brexit.

Other barriers to car buying among this age group include increasing vehicle costs (36%), the cost of fuel (34%) and increasing vehicle taxes (35%).

Meanwhile, 39% of the eldest cohort surveyed (46-66+) said that none of the options listed by the survey would put them off buying a car this year.

Close Brothers Motor Finance's Britain Under the Bonnet report found that almost two in five (37%) drivers under 30 will use some form of finance to purchase their car, meanwhile.

“The next generation of car buyers are entering a different world to the ones their parents encountered at the same age," said Sean Kemple, director of sales at Close Brothers Motor Finance.

"Climate change, political and economic uncertainty, not to mention the concept of ownership have had an effect on the decisions they are now making.

"Cost is the most pressing issue for this age group, but closely followed by issues that aren’t to do with money – such as the environment.

“From a dealer perspective, it is up to us to meet this new list of demands presented to us. This is done through an affordable and attractive range of stock, good financing options, and informed advice and guidance tuned to their specific needs.".

 

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