• Almost three quarters of motorists (73%) say the effects of the war in Iran have stretched their finances
• A third (33%) think it will be at least six months and a quarter (25%) more than 12 months before they see an improvement
• 36% say it has made them less likely to replace their current car, according to July’s Startline Used Car Tracker

July’s Startline Used Car Tracker shows a third (33%) think it will be at least six months before their situation recovers, a quarter (25%) more than 12 months, and 10% over two years.

Consequences such as rising pump prices, higher energy costs and food price inflation mean less is being spent on their car - with 36% saying they are less likely to replace their current model, 36% looking for cheaper insurance and 25% deferring repair of minor body damage.

Also, 19% are spending less on servicing, 15% are using their car less, 11% are postponing tyre replacements, and 4% may even have to sell their car.

Paul Burgess, CEO at Startline Motor Finance, said: “Following the inflation of the post-pandemic period and the negative impact of Brexit, many feel the war in Iran is yet another problem and consumer confidence is currently at its lowest point for several years.

“It seems they feel wary and vulnerable, and this is having a direct impact on their motoring expenditure. Especially, seeing people defer servicing and tyre replacement – both actions that could directly impact their safety – is a concern.

“Also, while the 4% who say they may have to sell their car is a low percentage, it just shows how marginal some people’s finances have become Their ability to handle any kind of economic shock is very low.”

The Startline Used Car Tracker also shows that it is not just motoring costs being affected by the situation in Iran, with 53% of respondents expecting food prices to rise further and 42% saying heating costs will do the same.

Paul added: “People are looking to make savings in all kinds of daily expenditure and, with the conflict still underway and a resolution seemingly difficult to achieve, it appears that they are correct in believing the situation won’t improve for some time yet.”

The Startline Used Car Tracker is compiled monthly for Startline Motor Finance by APD Global Research, well-known in the motor industry for their business intelligence reporting and customer experience programs. This time, 300 consumers and 60 dealers were questioned.