Some 2.7m more drivers are planning to opt for a new car purchase this year than previous years, according to research from Close Brothers Motor Finance.

The company’s Britain Under the Bonnet report found that for 45% of respondents, a new car is now the preferred option – up from 38% last year.

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According to Close Brothers, the lockdown has fuelled fresh demand for a private vehicle, while working from home has enabled many people to save money on travel and entertainment costs. As a result, more drivers may feel confident that they can opt for a brand-new car, rather than going for a more affordable used car option.

With the government banning new diesel and petrol cars from 2030, this has influenced more than one in ten (11%) drivers to buy a used car as a ‘filler’ car – a vehicle that will tide them over in the interim between now and when the ban comes into effect, at which point they’ll need to explore alternative fuelled vehicles (AFVs) or hybrid models when considering a purchase.

For those who more inclined to opt for a new car, 45% said the reason for that is because they trust it’ll last longer, while 39% think new cars are better for the environment. Some 36% think they are more economical to run, and 32% think they offer better value for money.

Seán Kemple, managing director of Close Brothers Motor Finance, stressed the importance of firms paying attention to consumer sentiment. “The pandemic has undoubtedly shifted behaviours, and with a newfound reticence to use public transport, owning a private car has become a necessity for many.

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“The pandemic has also polarised people’s financial affairs – with some feeling the impact of job losses and economic decline, while others have been able to save up during the lockdowns. This has undoubtedly impacted people’s decisions to opt for a more affordable option as their next car, or to splash out on a brand-new model.

“For used cars, there’s a clear supply issue – partly due to Brexit. Until the trade deal was agreed there was a real worry that Britain’s automotive sector would not be able to trade with the EU. This was especially concerning for manufacturers, as four out of five cars made in the UK are exported. But beyond Brexit, a general contraction in new car sales over recent years has meant the used ‘car park’ of the UK has shrunk.

“This bottleneck has pushed prices up, both at a wholesale and retail level. These constraints mean dealers need to be smart in their approach, making sure they’ve got the best supply chains to match the demand in their area.”