Motorists Focus On Driving Costs
by Tim Barnes-Clay, the man behind the wheel.
Date: 12 September 2010
ACCORDING TO definitive data from the UK’s leading motor auctions business, British Car Auctions (BCA), there is clear evidence that motorists buying habits have changed in recessionary times. The continued economic downturn is making motorists focus closely on managing their driving costs, which means environmental considerations have taken a back seat in the past 12 months.
The BCA Used Car Market Report is in its twentieth year and is the only independent report on the used car market. The 2010 Report utilises research conducted with 4,000 motorists in April 2010 and has been authored by the Centre for Automotive Management, University of Buckingham Business School.
Key Statistics
- 35-44 year olds and 45-54 year olds were the most prolific car buyers over the last 2 years at 39% and 37% respectively - perhaps having the financial freedom afforded by lower interest rates for mortgages, etc
- But generally motorists are still wary of making a new financial commitment – 54% say they won’t be replacing their car in the current economic conditions
- Across the country, motorists in the East Midlands are the most wary – 64% said they hadn’t considered replacing their vehicle during the recession, followed by those in Yorkshire & Humberside, the North West and South West all at 62%.
- London motorists seem to have the least concern about the recession and its impact on their car buying plans with 38% saying they won’t be replacing their car
- Price remains the top ‘crunch’ factor when choosing a used car but this has dropped year on year by 6 points to 44%.
- There seems to be a greater focus on getting a car that will be with them for the longer-term, with 33% saying low mileage would be important, compared to 28% last year
- In order to tackle rising fuel prices, over half (51%) of motorists aim to look for ‘better fuel consumption’ in their next car; 23% want a car with lower road tax
- However, 25% of motorists said escalating fuel costs would not influence the type of car they bought next time
- The number of motorists who said the environment was an important consideration in their next car purchase dropped from 6% last year to 5% in 2010
- And there is a 3% year on year increase in the number of motorists who plan to walk more often to reduce their personal motoring costs; women far outstrip men in taking exercise to save on costs at 48% compared to 33%
- But the appeal of public transport appears to have waned slightly compared to last year with a 2% drop in motorists seeing this as a cost-saving option
“The findings from our 20th annual Used Car Market Report suggest motorists have been challenged by what’s the best way to control their motoring costs” said Tim Naylor, PR Manager, BCA.
“The fear of job loss and rising household and motoring costs certainly appears to be having an on-going impact on car buying plans and saving money at the point of purchase is obviously still the number one priority, along with better fuel consumption and lower road tax. However, there is also a longer-term view being taken by many motorists to opt for vehicles that they plan to keep for a greater period of time.”
“Another key factor noted in our 20th Annual Report is the emergence of a generation of new car owners, thanks to the Government’s scrappage scheme. 38% of those who bought a new car under the scrappage scheme were buying new for the first time in their lives. This was a welcome boost for manufacturers and dealers, but raises questions about how long these new car owners plan to hold onto their vehicles and how might this impact on the motor industry in the future?”
Used remains in favour over used
Two out five motorists intend to buy a used car next time they change, although the number of prospective buyers planning to buy a nearly-new car has fallen to 8%; compared with 9% last year and 13% three years earlier.
Type of used car
The mix of used car sales is virtually unchanged over the past two years; hatchback sales accounting for 46% of the used car market and saloons remaining at 20%. However, sales of off-road vehicles edged up two points to 7% of the market, while estates fell one point to 8%.
Diesel-engined cars’ share of the used car market has jumped 10% in the last four years, reaching 36% this year, from 33% in 2009 and 26% three years earlier. This continued trend towards used diesel brings it ever closer to the new car market share of 42% reflecting the growth in diesel power within the fleet market.
