Up to 50 Percent of Motorists Plan to Buy New
More motorists are choosing new cars for their next purchase.
Research from Buyacar.co.uk suggests that half of motorists who plan on purchasing a car will go for a new vehicle over a second hand one.
Bad News For Used Car Dealers?
The numbers were quite different only three years ago, when less than a third of motorists planned to buy new for their next car purchase, but it seems that the number of motorists willing to buy old cars is decreasing across the board. Only 9.6 percent of those buying a car plan to buy one that’s between three and four years old, which has dropped significantly from 21.4 percent in 2013. Those planning to buy cars that are between two and three years old has also dropped to 8.1 percent from 13.6 percent in 2013.
What’s Caused This?
Amongst other factors, some very competitive and affordable finance deals (PCP) are allowing motorists who previously couldn’t afford to buy brand new from a dealership, to do just that. Even used car motor traders are getting in on the finance hype, offering it to their customers, which shows just how popular it’s getting.
What Buyacar.co.uk Said
Co-founder of Buyacar.co.uk, Austin Collins, said: “We have all grown used to headlines about record registration levels but this research is fascinating in the way it confirms the underlying and ongoing consumer demand for new and nearly-new cars. These findings suggest the boom in new car sales is not only set to continue but may even be gathering pace. Given the rise and rise in new car sales we have seen in recent years it is particularly remarkable that our research reveals a 43% increase, from 31.4% to 45.1%, in people looking at buying a new car next. We also think that consumer expectations have now been re-set, perhaps permanently, so that the typical car buyer is now focused more keenly on newer product than ever before. We were also struck by the increase from 8.6% to 13% in the proportion of people planning to change their car in the next three-to-six months because that is a remarkable rise of 51%. All of this data suggests that the appetite for new and nearly-new cars is still strengthening and that the market has even more room to grow.”
So, What Do Motor Traders Think?
If you’re a new car dealer or a second hand motor trader, we’d love to hear your thoughts? Let us know what you think of this research, and how you think it could affect you. Plus, don’t forget, if you’re a motor trader in need of insurance, then we can help you out. To get a quote today call us on 0800 221 8077 or click Get a Quote below.