The desire to avoid public transport combined and a widespread effort to save money in this economically uncertain time are driving up prices.
High demand and a shortage of supply have prompted an average rise in prices of almost 10% year on year – and in exceptional cases, typically for desirable SUVs, rises of close to 20%.
Demand is being chiefly driven by two factors, one of which is gradually losing momentum, while the other is gaining it fast enough that the trend looks set to push on until at least 2021’s end.
The former factor is, of course, Covid-19. The desire to avoid public transport combined and a widespread effort to save money in this economically uncertain time are driving prices up.
The latter is the supply shortage of new cars as a result of the semi-conductor chips crisis. Some buyers are abandoning waiting times of up to 26 weeks for a new car by buying a nearly new one.
The forthcoming Spring Bank Holiday weekend will see an estimated 10.8m leisure trips taken by car, new RAC research of drivers’ plans suggests.
The figures indicate drivers have firm plans to take around 7.2m trips to see friends and family between Friday and bank holiday Monday – with Saturday and the bank holiday itself busiest at 2m separate journeys each day.
An extra 3.6m journeys are due to be taken at some point over the weekend by motorists who have not yet decided on which days they will be on the roads.
The RAC survey of 1,100 drivers suggests the weather is set to play a pivotal role in how much traffic congestion there is. The research also shows the effect the reduction in Covid cases is having on motorists’ increasing confidence to drive longer distances to see friends and family. Only one-in-10 drivers (11%) aren’t planning leisure trips next weekend due to the pandemic, compared to 18% over the Early May Bank Holiday and 25% over Easter.
Ford said on Wednesday that it would boost spending on electric vehicles to more than $30bn and that 40 per cent of the vehicles it sold worldwide in nine years would be electric. The Dearborn, Michigan, automaker had already accelerated spending on electric and autonomous vehicles from $11.5bn by the end of 2022 to $29bn by 2025. Now it has added at least another $1bn by 2025. Rival General Motors is planning to spend $27bn. Ford shares rose nearly 7 per cent to $13.69 in midday trading. The move is another step by a US automaker to grapple with the push towards electrification that is upending the auto industry. Most analysts think the global industry will be largely electric within two decades. Ford already has promised that it will only sell electric vehicles in the UK and Europe by 2030.
Switching to a less polluting car is the number one reason drivers are planning to buy a vehicle this year, according to new research from AA Cars.
It found that a third of those buying a new car and 24% of those buying used said switching to a less polluting car is their primary reason for changing vehicle in 2021.
The findings are borne out in official sales figures of second-hand vehicles from the first three months of 2021. According to the SMMT, sales of used electric vehicles grew 48.3% in the first quarter of the year compared to the same time in 2020, aided by the increased availability of pre-owned EVs. Sales of plug-in hybrid cars also grew 32.1%, and hybrid cars by 16.6%.
AA Cars’ research also found a 20% of drivers are planning to change car this year because they are bored of their current vehicle, while one in 10 need a bigger car. […]
eBay Motors Group has launched a new marketing and advertising campaign for Gumtree.
Central to the “Good Finds” campaign will be the promotion of Gumtree as a platform for younger digital-savvy, mobile-first and climate-conscious consumers, where buying secondhand is viewed as a smart financial and sustainable choice.
The first of six ‘Just Good Finds’ adverts aired on Saturday 22 May, with the remaining ads rolling out over the course of May and June, including one highlighting Gumtree’s role as a go-to local car buying platform. More Good Finds activity will run for the rest of 2021. […]