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Car Buyer Confidence Crushed by Brexit and Diesel Concerns

Customer confidence is low, as Brexit, uncertainty over fuel types and the recently published FCA report highlights challenges for the motor industry. However, a growing sentiment for greener vehicles shows the need for Government support.

Paragon Motor Finance’s most recent survey of leading UK brokers reveals that 100% of brokers blamed Brexit for weak car buying confidence.

The survey was published one month after the FCA (Financial Conduct Authority) Motor Finance Report, set up to address ‘unclear’ and ‘excessive’ motor finance costs, advised brokers to be more transparent in their dealings with customers.

Julian Rance, Paragon’s Director of Motor Finance, said:

This transparent approach supports Paragon’s long-held belief that being honest and upfront builds trust and loyalty among customers and this in turn encourages repeat business and referrals.

It is by no means all doom and gloom. We operate in a cyclical industry and we will see business start to rev up again when some of the uncertainties holding us back are resolved.

Whilst Mr Rance highlighted broker concern about the increasing uncertainty among buyers about which fuel type to choose, there is a growing sentiment for greener vehicles.

He said:

Demand for diesel cars has all but crashed and while demand for petrol remains strong, we have seen increasing demand for greener alternatives, such as hybrids or fully electric vehicles.

However, we urgently need action from the Government which needs to invest in a nationwide network of charging points and general infrastructure upgrades.

Paragon, as a funder, would welcome support in funding requirements for this as Government support is vital. Without this, lenders will continue to remain cautious regarding the financing of greener vehicles.

The full Headlight Summer 2019 report can be found here.