Petrol price increases drive car buyers to smaller cars

With petrol prices creeping up, drivers are looking to buy smaller, fuel efficient cars.

A third of drivers consider fuel efficiency as the most important factor when buying a new car, uSwitch has found in new research.

In addition, one in three drivers are planning on buying a smaller car, particularly as petrol is now costing £1.07 per litre in some areas.

Drivers downsizing their vehicles is causing demand for these smaller cars to soar. Sales of new small cars trebled in July and Ford, for example is planning on building 600 more Focus cars than planned.

The car scrappage scheme is also fuelling a move towards small cars as owners of old cars trade these in for a new vehicle. Those hoping to buy a used car bargain may be surprised to see second hand small cars increasing in price.

Whilst the car industry is receiving a welcome boost from the increased demand for smaller, fuel efficient cars, the recession is forcing many motorists to hold onto their cars longer than planned.

uSwitch found that 50% of car owners will hold onto their current car for longer than planned. 7.1 million motorists say that they won’t be able to buy a new car in the foreseeable future.

Those who can afford a new car are looking to reduce their expenditure, however. 22% of motorists are now making budget cutbacks compared to 15% last September.

Commenting on these findings, Mark Monteiro, insurance expert at uSwitch.com said “Of those motorists who are in a position to afford a new vehicle, size and fuel efficiency have emerged as crucial factors when choosing a new car. Consumers seem to be solely focussed on keeping the longer-term running and maintenance costs are kept to a minimum.”

“In spite of the government’s incentive scheme and bumper discounts on the forecourt, however, many motorists are still reluctant to put their money where their wheels are.”

Mark Monteiro then goes on to advise motorists to consider safety, even when looking to make savings “Holding onto an existing model for a longer period of time is increasingly the norm in the current recessionary climate, however consumers need to ensure that their vehicles are properly maintained and road worthy, and appropriately insured.”

“It is vital that consumers don’t start to cut corners that ultimately involve taking chances with the safety of themselves and other road users.”

If reducing motoring costs is important, then drivers should compare car insurance quotes at websites such as uSwitch.com and Go Compare.