The current economic crisis is causing much uncertainty across the whole of the UK.
With fuel prices set to rise, recent reports reveal that petrol could surge to £2.50 per litre, while diesel could end up being rationed due to the outbreak of major shortages.
If you’re due to upgrade your car sometime soon, you may be wondering if all of this will affect the current price of car sales going forwards. Which, if so, may ultimately lead some of us looking for more economical cars with relatively low upkeep.
In this article, we explore whether or not these figures will continue to climb.
Sales continue to fall
According to figures from Statista, the number of Brits purchasing new cars has recently taken a severe nosedive. Sales have dropped by almost 30% in comparison to pre-pandemic figures, with 1.61 million new cars registered for the whole of 2020.
Alongside this, second-hand car sales have dropped too, with 2020 figures still 30% lower than pre-pandemic averages. This leads us to believe that the coronavirus outbreak has had a direct effect on overall sales. Lockdown no doubt aided the situation as for months at a time Brits were stuck indoors without the need of using their cars.
Cheaper alternatives to purchasing a new car
With the ongoing increase in fuel prices and energy bills, many UK families are contemplating ways they can cut back their spending – making it more than likely that many won’t be opting to splurge on new cars across 2022.
If you’re in need of a replacement vehicle this year, here are a few cheaper alternative options to consider:
Electric cars have significantly lower running costs compared with petrol and diesel engines. Due to these innovative vehicles being much more environmentally-friendly, the government is currently offering a Low Emissions Vehicle Grant of up to £1,500 to anyone who switches to an electric motor. This can be a great financial booster if you’re looking for ways to save on your next car purchase.
Purchasing a second-hand car is significantly cheaper, and can even allow you to buy outright where you otherwise may have been considering leasing your vehicle on finance. Autotrader is a great platform to begin your search. It allows you to set specific filters, such as the exact make and model you’re looking for, your preference in colour, automatic or manual, plus maximum mileage limits.