News

Consumer confidence rises

Time 10:08 am, October 31, 2012

CONSUMERS are increasingly starting to barter with dealerships, according to data from Motors.co.uk.

With a gloomy economic climate hanging over our heads, the classified ads site reckons more haggling is taking place than ever before.

On cars worth up to £5,000, a reported 85 per cent of consumers expect a discount of as much as £500 – effectively a 10 per cent price cut.


For more expensive cars, though – those over £15,000 – more than half of buyers want a discount of £1,000 minimum.

More and more added extras are being demanded for nothing, too – 80 per cent would expect a 12 month warranty as standard, while 75 per cent want at least 10 months MOT and a year of tax.

‘The internet is a great source of empowerment for the consumer, providing them with access to information to better understand pricing, and also the confidence to know that they can save money by shopping around,’ commented Motors.co.uk’s Phill Jones.

‘Consequently, consumers are increasingly ‘backing themselves’ on the forecourt. This is great news for dealers as an informed, confident consumer is more likely to transact.’


This isn’t all bad news for dealers though, says Jones, suggesting that the key is giving customers an inch that feels to them like a mile.

‘Creating ‘wins’ for the consumer that are not too expensive can go lengths in helping the consumer feel that they have got a deal,’ he said. ‘The overriding emotion of car buyers is a nervousness that they are overpaying, but this can be easily placated by creating a deal for the consumer.

‘This doesn’t necessarily mean an impact on margins, as there are various tools at a dealer’s disposal. The warning is that consumers will compare offers against other dealers nationally, so any packages need to be compelling and backed by a high level of service.’

Jon Reay's avatar

Staff Writer Jon is one of the Car Dealer team's newest members. You can also find him contributing to AOL Cars.

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