Budget shifts focus from EV transition to new vs used affordability

A new survey from Carwow, which questioned 700 consumers, has found 30% of car buyers are more likely to buy a used car rather than a new car following the Autumn Budget. Used car enquiries generated via Carwow increased 63% YoY to the end of October.

When asked if the Budget has impacted their likelihood of buying a car in the coming months, 19% said they are now less likely, while 21% said they are more likely, 40% said they are just as likely as they were before and 34% still intend to buy new.

Iain Reid, Head of Editorial at Carwow, said: “It’s clear from our consumer survey results that the Budget has done little to encourage more car buyers to make the switch to EV ownership and, instead, has made a significant portion of consumers reconsider what they can afford when choosing their next car, most notably choosing used over new.

“While an extra £500 million to help deal with potholes is also welcome, it’s not going to fix the problem overnight.”

Carwow’s survey found that 37% are more likely to consider a cheaper car than the one they were originally considering prior to the Budget.

The Chancellor has committed to investing more than £200m to accelerate EV charge-point infrastructure.

Reid added: “The Chancellor confirmed that EVs will retain their favourable Benefit in Kind tax rates for company car drivers and, while they’re no longer exempt from vehicle excise duty from April 2025, will also be subject to more favourable first-year tax rates than petrol and diesel cars.

“However, rather than incentivising electric car ownership, she looks to be disincentivising ownership of other fuel types, with big increases in VED rates and large hikes in Benefit in Kind for hybrid cars coming in 2028.”

When asked if they are more likely to consider an EV after the Budget, 19% said yes, 56% said they no and 15% said they were already planning to buy one.

When asked if the Chancellor should have done more to drive the transition to EVs, 34% said yes while 55% answered no.