Brexit uncertainty and the prospect of increasing car prices could cost the new car market an estimated £6.5 billion.
An estimated 377,000 motorists ‘strongly agree’ that Brexit is making them think twice about buying a new car, according to research by AA Cars, the used car website.
Around a quarter of motorists predict leaving the EU will push up the price of everyday driving costs, with 23% expecting new car prices to rise, 26% concerned about the spiraling cost of fuel and four in ten (16%) predicting insurance costs will increase. Drivers in Scotland were the most pessimistic about car prices, as a third (32%) agreed strongly that we’d see price increases due to Brexit.
The AA-Populus poll, which surveyed 15,470 AA members about their car buying intentions in light of the EU Referendum, also found that 6% of drivers are putting off buying a new car until they know what Brexit really means. Consistent with this, 7% of drivers say they ‘strongly agree’ with the statement that they’d be more likely to buy a used car since the EU referendum.
Younger drivers are among those most concerned, with 9% of 25-34 year olds put off by buying a brand-new car, with one in ten (10%) of that age group looking to buy a used car instead.
Simon Benson, Director of Motoring Services at AA Cars, said, “It’s impossible to predict exactly what Brexit will mean for the British motor industry, but it’s already clear that the current climate of uncertainty is having a real impact on car buying intentions across the UK.