Car buyers itching to take out their wallets

Most consumers in the market to purchase a car before the pandemic hit are still intending to do so after lockdown restrictions are lifted.

This is according to a new study by CarGurus.

It found that pent up demand among UK car buyers could be a bright spot for the automotive sector as only four per cent who were planning to buy this year before the pandemic have now delayed their plans indefinitely.

Many buyers are likely to return to the market sooner than expected with nearly a quarter (24%) wanting to purchase as soon as lockdown restrictions are lifted, while 84% of those who plan to buy in 2020 are actively researching now.

While it’s clear there’s still appetite to buy, this does not mean that consumers are not concerned about the impact of the pandemic on buying. In fact, economic uncertainty (30%), dealership closures (32%) and believing their purchase is putting people at risk (26%) were cited as some of the barriers to buying right now.

But for many, a vehicle purchase is essential: nearly two thirds of buyers (64%) reported that their vehicle purchase was necessary. There may also be a shift in consumers now looking to buy a used car or approved used car, as 37% of those who had initially planned to buy new now plan to buy used or approved used.

Madison Gross, director of customer insights at CarGurus, said: “There is no doubt the Covid-19 pandemic is having an impact on the automotive industry, but our study shows it’s not all bad news for the sector. Many consumers are still planning to buy a vehicle quickly when the lockdown ends. And in a strange twist, concerns about public transport and ride-sharing may actually drive new demand.”