8:22 am, September 8, 2008
NINE out of 10 car owners are worried about the rising cost of living.
But only four out of 10 say they would hold off buying a new car.
The findings from Experian show that fears of market paralysis might not be as far-reaching as many suspect.
What’s more, one-third of buyers say they change cars regularly – and but 20 per cent of those reckon they are going to delay buying a car. That’s despite nearly 85 per cent worrying about their current running costs.
This suggests that, while buyers may wring their hands in the showroom about the credit crunch, they’re nevertheless more willing to buy than you may imagine.
Kirk Fletcher, MD of Experian’s automotive division, said: ‘People are clearly worried about the current economic climate. However, it is interesting to find that the influence of these concerns is not as overwhelming as expected.’
‘People are certainly thinking about these issues when they are considering a car purchase, but not as many people as expected are actually delaying their purchase. People are still buying cars.’
He also offers some tips on how dealers can maximise opportunities. ‘The most effective revenue-building asset in a dealership is the customer database. Dealers can maximise a database’s value by using it to understand their customers more, then identify and target those who are most likely to buy soon.’
Key findings of the Experian survey:
* 87 per cent of car owners are worried about the rising costs of living
* 42 per cent would put off the decision to buy a car because of this
* 86 per cent of car owners are concerned about the rising costs of running a car
* 17 per cent would delay buying a car because of this
* 34 per cent of owners are worried about being able to get car finance
* 22 per cent would delay buying a car because of this
Do the findings of the Experian survey match your experience? Is the vital September trading period supporting this evidence? Do e-mail us to let us know how things are shaping up at your dealership.
