Car buyers are reviewing their car purchasing plans in the wake of the Autumn Budget.
That’s the key finding of a survey of 1,000 car buying decision makers, conducted by Insight Advantage for Motors.
It found over a quarter (28%) of respondents are now less confident as prospective car buyers than they were before the chancellor’s announcements. Low confidence was highest for those aged 45-64.
Only 17% said they now feel more confident about buying a car, peaking among 23–34-year-olds.
Nearly half (49%) of new car buyers polled said they will not delay their next purchase, compared to 30% who may postpone their decision.
Of those who are delaying, nearly a quarter (24%) expect to be back in the market within six months.
While a third (34%) of used car buyers said they will not delay their next purchase, compared to 28% who will. One in five of those delaying will do so for up to six months.
There was a mixed response to the government confirming the introduction of a pay-per-mile Electric Vehicle Excise Duty on EVs from April 2028 and an additional £1.3 billion increase in funding for the Electric Car Grant (ECG).
The ECG extension prompted 42% to say they are now more likely to consider an EV, with just over half (52%) expecting to do so in the next 12 months. However, the expanded grant will have no impact on the EV plans for 54% of decision makers.
One in two buyers (54%) are less likely to consider an EV because of the introduction of a pay-per-mile levy, with two-thirds (66%) of EV owners saying they are now less likely to purchase an EV in the next buying cycle.
Lucy Tugby, marketing director of Motors, said: “Widely reported speculation and leaks in the media in the weeks leading up to the Autumn Budget undoubtedly dented consumer confidence.
Our research reveals the uncertainty many car buyers still feel following the announcements, especially when it comes to EV consideration.
“The results will be disappointing for dealers who have worked hard over the course of this year to provide customers with the peace of mind they need to consider buying new and used EVs.”