22 Jun 2024
The voice of the independent garage sector

Cost of living crisis: Sharing is car-ing?

20% of car owners would be willing to sell their car as a result of the cost of living crisis and instead opt for hire cars when the need arises, according to a new survey.

The research, from NTT Data UK&I, found this figure rose to 31% when just looking at thee 16-29 age group. 7% of this cohort are currently planning to sell their car in favour of alternative options. The study also found that 15% of owners would be interested in doing paid car sharing to boost income, which became 29% when just considering 16-29-year olds. For those in their 30s it was 21%, and 20% for 40-somethings. More broadly, 48% of those surveyed intend to keep their current car for longer before replacing it, with 26% preferring second-hand for their next purchase.

Commenting on the findings, NTT DATA UK&I VP and Head of Automotive Dominic Rowles said: “The sharing economy has been a bit of an outlier in automotive ownership, and therefore it’s no surprise that the cost-of-living crisis is the trigger needed to give this momentum. The leading volume OEMs have already recognised that mobility and subscription models will play a large role in the future of automotive, but whether they are designing solutions that are tailored to the more youthful consumer is debatable.”