F&I Management & Training

Economical and environmental concerns make buyers choose newer cars In a recent survey carried out by Exchange & Mart, it was revealed that 84% of over 1,000 buyers surveyed would like their next car to be less than five years old. This figure has increased since the same survey was carried out in 2007 and may be due to growing awareness that newer cars are more economical and environmentally friendly. The reduced efficiency and increased carbon emissions of older cars are making the news every week, and this may be having an effect on the way car buyers think about their next vehicle. Compared to the 2007 results, it appears that whilst buyers are not necessarily looking for a brand new car they are prepared to make an investment now to save money in the longer term, by spending more on a relatively new car which will cost less to keep running. Whilst the most popular price bracket was £1-5,000, a greater number of buyers are now thinking of spending between £5,000 and £15,000 on their next vehicle. To buy a car which is just one year old, will save you around 40% of the vehicle's original value, offering a huge saving on what is still a very economical car which remains covered by the manufacturer's warranty, showing that choosing wisely can save you a significant amount of money. "As the saying goes: If you take care of the pennies, the pounds will look after themselves, and you can do this by buying a nearly new car as you save not only on the price of the car, but on the running costs in the long term as well." says Debra Healy, Digital Director at Exchange & Mart. "A newer car will cost less to keep on the road as there will be fewer mechanical issues due to age, high mileage and wear-and-tear." Healy concluded: "From this research, it appears that the used car buyer is becoming more aware of long term value for money and less inclined to opt for an instant bargain. Dealers need to remain responsive to this shift in buying habits and by doing so will easily avoid the risk of significant losses during the crunch."

DATED: 05.09.08

FEED: AW