Drivers are spending less on car repairs and servicing as a consequence of rising pump prices, higher energy costs and food price inflation.
That’s the conclusion of Startline research which found that three quarters of motorists (73%) say their finances have been stretched by the impact of the war in Iran
More than a third (36%) say they are less likely to replace their current model, 36% are looking for cheaper insurance and 25% are deferring repair of minor body damage.
A fifth, 19%, are spending less on servicing, 15% are using their car less, 11% are postponing tyre replacements, and 4% may even have to sell their car.
Paul Burgess, CEO at Startline Motor Finance, said: “Following the inflation of the post-pandemic period and the negative impact of Brexit, many feel the war in Iran is yet another problem and consumer confidence is currently at its lowest point for several years.
“It seems they feel wary and vulnerable, and this is having a direct impact on their motoring expenditure. Especially, seeing people defer servicing and tyre replacement – both actions that could directly impact their safety – is a concern.
“Also, while the 4% who say they may have to sell their car is a low percentage, it just shows how marginal some people’s finances have become Their ability to handle any kind of economic shock is very low.”
The Startline Used Car Tracker also shows that it is not just motoring costs being affected by the situation in Iran, with 53% of respondents expecting food prices to rise further and 42% saying heating costs will do the same.
Burgess added: “People are looking to make savings in all kinds of daily expenditure and, with the conflict still underway and a resolution seemingly difficult to achieve, it appears that they are correct in believing the situation won’t improve for some time yet.
The Startline Used Car Tracker is compiled monthly for Startline Motor Finance by APD Global Research, with 300 consumers and 60 dealers taking part.
