Research released today by NTT DATA UK&I, a trusted global innovator in business consulting and IT services, reveals that 20% of car owners are tempted to consider selling their car and instead renting one when needed because of the cost-of-living crisis. Furthermore, 15% of car owners are tempted to consider sharing their car for extra income, signalling a shift in consumer habits.
The survey, which questioned a representative sample of 2,000 consumers in the UK, set out to discover how the cost-of-living crisis is impacting car purchasing and ownership. The research found that younger generations are more likely to consider a change to their car ownership, with almost a third (31%) of 16–29-year-olds tempted to consider selling their car and instead renting one when needed because of the cost-of-living crisis. In addition, almost 1 in 10 (7%) of the same age group are currently planning to sell their car in favour of alternative options.
The rise of car sharing
It was also discovered that car owners are becoming more interested in sharing their car via a car share app for extra income. 29% of those aged 16–29 said they are tempted to consider sharing their car for extra income, with a fifth of those in their 30s (21%) and 40s (20%) considering this too.
Dominic Rowles, VP and Head of Automotive at NTT DATA UK&I, stated, “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."
Consumers are less likely to buy new car
The research additionally found that almost half (48%) say that due to the cost-of-living crisis, they are planning to use their current car for longer before they buy another and a further quarter (26%) say that they will probably buy a second-hand car when they next purchase.
Rowles concluded, “If we are at an inflexion point in the ownership model, we are likely to see a provider with a revolutionary solution start to dominate the market. The next Airbnb, Uber or Spotify is in the pack of players somewhere and how the OEMs and Retailers interface or react to them is probably the key to making sure they don’t lose out.”