
Motorists plan to keep their current cars longer according to new research by British Car Auctions. The report highlights that the UK car parc is ageing as fewer new cars have been sold since the beginning of the credit crunch in 2008. “The simple fact is the UK car parc is getting older, as fewer new cars are sold and both motorists and businesses have held onto their vehicles for longer,” said Tony Gannon, BCA Communications Director.
“The average age of cars on UK roads rose in 2010 to 7.25 years, which is a 14 year high. The trend for older cars is rising and we believe this could continue for several years to come.” Price remains the most critical factor for used car buyers, with 40% saying this is their highest priority. After make and model at 35%, low mileage is the third most important factor for used car buyers at 28%. Seven out of ten car owners plan to buy a used car next time they change.
The BCA report also suggests that families will be looking for smaller, more practical and economic vehicles as household budgets get squeezed. Half of those surveyed feel the rising cost of fuel will force them to change to a more fuel-efficient car and/or alter their driving habits. The price of fuel has already reached a point (£1.30 plus per litre) where a fifth of motorists say they will have to seriously consider one or both these options.
“Our research shows that motorists have several measures in mind to curtail their frontline motoring costs,” added Tony Gannon. “Top of the list is buying a car with better fuel consumption – at 27%. But demand for these types of vehicles could well outstrip supply, pushing up prices as a consequence. The next 12-18 months are going to be a very challenging period for the UK motor industry. The potential supply shortage of younger used cars over the next few years may create upward pressure on used vehicle prices, while economic pressures may lead to reduced demand which will push prices downwards. Which of those two levers will be the stronger remains to be seen.”
“This survey highlights how important it is that dealerships keep in contact with their present and past customers, knowing what their buying cycles are and talking to them regularly about upgrading to newer cars, then buying their existing cars from them for used stock,” says Douglas Stafford Customer Contact Centre Operations Manager Madelaine Cook.
“Although this survey shows that fewer people are likely to be buying new cars, the demand for quality used cars is likely to increase and this presents fresh sales opportunities and will become an increasingly important part of dealerships’ business. If you don’t have the resources or staff to talk to your existing or past customers on a regular basis then that’s something we can help with – our customer contact centre team are experts at communicating with customers on your behalf and will be happy to help.”
Douglas Stafford‘s customer contact centre can help dealers connect and reconnect with past and present customers increasing sales potential and building client loyalty. For more information about Douglas Stafford’s Customer Contact Centre and how it can help your business please call Crystal Campbell on 0800 783 1913 or email: [email protected]