There’s no doubt we are enjoying a golden run of low fuel prices and new data out of the UK shows that what we are saving at the pump we are spending on more expensive cars.
The data, compiled by Motors.co.uk, shows a dramatic increase in vehicle searches by monthly payment. How dramatic? They are talking a 78% rise in searches for vehicles with a monthly payment amount of up to £300 ($571 AUD).
Motors.co.uk say it’s clear the reduced spend on fuel is freeing up cash for vehicle upgrades.
Peter Watts, director of dealer insight at Motors.co.uk, says it’s been interesting to watch the trends change as fuel prices have dropped.
“Over the past few months, we’ve seen fuel prices reach their lowest since 2009 and consumers are therefore making a significant saving each time they visit the pumps and, in some cases, this is freeing funds for spending elsewhere, such as on updating vehicles.”
“This is good news for dealerships, with sales teams able to work closely with customers in order to present the most appropriate finance solution for their circumstances. In some cases, this may mean being able to reallocate the saved fuel costs to trade up a price bracket. Add in more fuel efficient models and the fuel cost reduction could be even more compelling.
“However, we must be mindful that the economic situation with regards to fuel is not a stable one and the drop in fuel prices is beginning to slow.”