Rising inflation and cost of living will put the brakes on car sales, particularly electric models, says Close Brothers Motor Finance.
It will also slow down the UK Government’s drive towards greener policies for other products and services, according to Lisa Watson, Director of Sales at Close Brothers.
“More than 40% of consumers have decided against buying an electric car due to rising prices; while this is entirely understandable at an individual level, it is a problem at a societal one. If the Government hopes to hit its 2030 electric ambitions, it must quickly turn its focus to how to improve infrastructure, pricing, and take-up of AFVs.
“With the high court putting pressure on the government to outline the steps to net zero, we must hope the policies pursued are more carrot than stick.”
Research from Close Brothers Motor Finance in June 2022 revealed:
- More than four-in-ten (41%) consumers have decided against going electric because of high inflation
- More than 84% of people are taking at least one measure related to their car ownership or usage to adjust for inflationary pressures.
- A fifth (21%) are cutting down on journeys, rising to a third (33%) of people aged 55 and over, highlighting the impact on older motorists.
- One-in-ten (11%) people are turning to public transport instead of driving, and 17% are shopping around for cheaper fuel.
