New analysis by AA Cars has revealed that one in five drivers plan to save money by walking or cycling instead. A further 18% of drivers aim to buy less fuel, while a quarter of those planning to buy a car intend to buy an EV.
An AA Cars poll of more than 14,000 drivers found that a quarter (25%) of those in the market for a car this year are planning to purchase an Electric Vehicle (EV).
Over a tenth (12%) intend to buy a used EV, while 13% are looking for a brand new electric model.
The majority of drivers who are already planning to buy a car this year will be changing their existing petrol or diesel vehicle for another petrol or diesel model. Two in five (43%) plan to buy a used petrol or diesel vehicle, while over a quarter (28%) will be looking for a brand new one.
With the cost of living crisis starting to bite, many drivers are reviewing their driving costs and how they can cut back on spending.
A fifth (19%) of drivers plan to cut down on car journeys by walking or cycling more, and in turn 18% are buying less fuel. Younger people aged 18-24 are the most likely to be using their car less frequently, with a quarter (25%) planning to walk and cycle more compared to 19% of people aged 45-54.
Meanwhile, 22% of younger people are planning to buy less fuel, compared to 15% of people in the 45-54 age bracket.
Nearly one in 10 (9%) are choosing to take public transport instead of using their car, and 3% are cutting back on maintenance and servicing. Meanwhile, 2% of drivers are planning to sell a car without replacing it this year.
Meanwhile around the home, half (53%) of people are reducing their heating and electricity usage to save money, a third (34%) are cutting back on days out and nights out, while a fifth (22%) are cancelling subscriptions to things like magazines, beer and wine clubs and streaming services.
A fifth (20%) are also selling unwanted or unneeded items to make some money, while 17% are not taking a holiday this year.
James Fairclough, CEO of AA Cars, said: “The sharply rising cost of living has prompted many people to cut back their spending, and with fuel prices hitting record highs, some drivers who can are switching to walking, cycling or taking public transport to save money.
“Nevertheless, it is reassuring for the car industry to see how many people still intend to buy a car this year. Yet the high cost of fuel is clearly weighing on the minds of many – a quarter of those planning to buy say they will go completely electric and choose an EV.
“Amid the current economic uncertainty, we also expect many drivers to explore alternative ways to access a car. We are likely to see increased interest in car leasing, which gives drivers the reassurance of knowing that they pay a simple fixed fee every month, which may also cover maintenance and servicing.
“Another way to protect yourself from unexpected and costly repairs is to take out a warranty for your vehicle. Discovering your car has a major fault which requires immediate action to fix can be a cause of both stress and expense, and often throws budgets into disarray.
“AA Cars research shows a fifth of UK drivers visit a garage for repairs at least twice a year, and spend more than £350 a year just to keep their car roadworthy, and so the protection that a warranty offers may appeal to the many drivers concerned about their ability to cope with an unexpected repair bill.”