Drivers downsizing fuel-hungry motors like BMWs for more efficient cars due to cost-of-living crisis
UK drivers are choosing to sell their expensive and petrol-guzzling cars and downsize to cheaper and more fuel-efficient vehicles amid the cost of living crisis.
Hatchbacks are becoming more popular as drivers sell their expensive BMWs and Audis to buy used mid-range Volkswagens and Fords, allowing them to pocket the difference.
Car dealerships have reported a drop in the number of people wanting to lease vehicles in the past two months, and those who do enquire are looking for cheaper deals.
This trend is expected to continue as the cost of living shows no signs of slowing down and energy and more drivers look for ways to save money.
Drivers of more luxury cars like BMWs and Audis have been trading in their cars for more fuel efficient options
BMWs (left) cost significantly more to fill up a full tank of petrol than a Vauxhall hatchback (right)
Owners of vehicles like a Mercedes-Benz S-Class have been feeling the pinch of high prices of fuel and swapping them for cars like a Ford Focus that do 20 miles to the gallon more
Lisa Watson of Close Brothers Motor Finance, which provides financing for vehicles, told The Observer that people have become increasingly nervous about the rising cost of energy.
She said: ‘We’re getting people coming from more expensive vehicles switching into more fuel-efficient ones … because clearly consumers are feeling the pinch.
‘We have started seeing these changes over the last two to three months, and they are now becoming more apparent.’
She believes buyers will continue to buy cars through finance deals rather than purchasing it outright, but vehicle leasing comparison sites have reported a fall in the number of inquiries.
The trend of changing vehicles for a more fuel efficient model started several months ago but it becoming ‘more apparent’ now
A Toyota Corolla will cover nearly twice the distance of some models of Range Rovers on the same amount of fuel
Auto Lease Compare said the number of enquiries was down 17 per cent on September last year.
As inflation has risen so sharply and the cost of living is being felt more and more, drivers who had disposable income to lease or buy a luxury car are now rethinking their decisions.
LeaseLoco chief executive John Wilmot told The Observer: ‘There is a significant trend towards people looking for cheaper alternatives as they are concerned about their outgoings.
‘People are concerned over paying their energy bills and the last thing they want to do is overcommit themselves on a car payment. So it’s only natural that they will try to reduce that expenditure.
‘There’s a pretty big cohort of people that go “I want or need a new car for that reliability aspect but I can’t have the premium marque that I once had, so I’m going to downgrade”.’
