62% of motorists have reduced the amount of driving they do due to the cost of fuel, according to a new survey by the online car marketplace Carzone.
The 2024 Carzone Motoring Report – the 15th of its kind – aims to provide a “barometer” of current car-buying trends, combining insights from the 80 million searches conducted on Carzone in 2023 with a “comprehensive survey” of 1,000 motorists in Ireland.
According to the report’s respondents, although there has been a 29% increase in car purchasing budgets, the cost of car ownership “remains a predominant concern.”
“47% of respondents reported an increase in their insurance premium, significantly up from 35.9% in 2023,” Carzone said in a statmenet.
“Fuel prices have also led to altered driving habits, with 62% reducing their driving due to fuel costs.”
According to the report, these “rising expenses” have prompted more individuals to downsize the number of vehicles they own this year compared to last, with 38% considering or already having reduced the number of cars in their household. Carzone speculates that this may be one of the factors that contribute towards a higher budget for a single vehicle.
Moreover, price remains the primary concern for 66% of car buyers.
“With escalating operational costs, 71% favour vehicles with clearly outlined monthly costs when considering finance options, a significant increase from 55% last year,” the statement reads.
There has also been a “growing interest” in electric and hybrid vehicles, with 54% of respondents now considering an EV or hybrid for their next purchase. This, Carzone says, marks a “substantial increase” from 35% in 2023.
However, 50% of respondents had reservations about going electric, citing infrastructure challenges, such as the lack of charging points, as a major obstacle to EV adoption.
Sales of petrol vehicles meanwhile were up 1% to 37% overall, while there was a 6% increase in the sales of hybrids and EVs even though they accounted for just 16% of the market.
“However, most drivers are looking at leaving diesel and petrol behind when it comes to purchasing their next car,” the report says.
“Among those surveyed, 54% said they intend to purchase an electric or hybrid when it comes to next changing their vehicle, despite concerns about lack of chargers, expense, reliability and range anxiety.”
Asked why they would buy a hybrid or electric car, 60% of respondents said it’s better for the environment, and 57% cited cheaper running costs.
“The automotive sector is at a pivotal juncture of recovery, with our data showing a promising start to 2024 and a pathway back to pre-pandemic levels of success for a sector recently challenged by Brexit and stock shortages,” Sinead McCann of Carzone said.
“This motoring report encapsulates the changing preferences of Irish consumers and how the industry can adapt to these emerging trends and expectations.”