Trust and reputation more important to young car buyers

Trust and reputation are significantly more important to the younger generation than to older ones when it comes to deciding where to buy their next used car, according to Experian, the global information solutions company.

While trust and reputation are key factors across all age groups, recent research conducted by Canvasse Opinion revealed that they are of greater importance to 18 to 24 year olds.

Kirk Fletcher, Managing Director of Experian’s Automotive division, said: “More car buyers are turning to cheaper, older cars, so it will come as no surprise that younger buyers are the most likely to go for an older model. However, with older cars there are potentially more problems, so being able to buy one from a trustworthy source becomes more important.

“Used cars aged between three and nine years old were the only ones to see an increase in sales during 2006 and the survey confirmed that the young are the biggest fans of these cars for the obvious reason of price although they are still keenly interested in the car’s condition to ensure they are getting a good deal.”

While price is the most important factor when it comes to purchasing a used car for all age groups, it is, not surprisingly, more important to the younger generation, particularly the 18 to 24 year olds. Interestingly though, whilst the condition of the car is also important to all age groups, younger used car buyers more frequently than any other age group state that the condition is an important factor. This is also the case when it comes to reliability.

Before buying a used car, younger buyers, aged between 18 and 34, are more inclined to discuss the issue with friends (40.6 per cent) or take recommendations from friends and family (26.2 per cent) than all of those car buyers aged over 35 (19.5 per cent and 17.0 per cent respectively).

Also, the younger the used car buyer the more significant surfing the Internet becomes in researching the purchase (55.7 per cent of 18 to 24 year olds compared to 48.6 per cent of those aged 25 to 34, 40.6 per cent of those aged 35 to 44, 32.3 per cent of those aged 45 to 54, 29.4 per cent of those aged 55 to 64 and 20.4 per cent of those aged 65 or more). By contrast, the older generation is more likely to base the decision on previous experience of a car than younger drivers (16.7 per cent of 18 to 24 year olds compared to 34.7 per cent of those aged 65 or more, for example).

Kirk said: “It could be argued that older car buyers are focused more on what the car would say about them, while the results suggest that the young are more concerned about getting value for money and not getting ripped off. They have a smaller disposable income and, therefore, a greater desire to find a bargain. However, in a bid to bag a bargain, the young could be putting themselves more at risk.”

“Younger car buyers are more likely to spend less than £5,000 on a used car (70.1 per cent) according to the consumer survey. However, with less money to spend, it is possible that they are less likely to take measures, such as carrying out an AA Car Data Check, to protect themselves from pitfalls such as clocking, fraud and ringers, and with fraud rings becoming more complex and focusing their energies on the vulnerable, the young are an easy target.

“Financial pressures amongst consumers of all ages are making them more cautious about where they spend their money and we are seeing a definite shift towards older cars.” But, the older the car, the more history it is likely to have and not all of it will be harmless. With older cars, there are potentially more problems that are not always obvious or visible to car buyers and with young car buyers intent on finding a bargain, they are more in danger of becoming victim to vehicle fraudsters.

The survey also found that while those aged between 18 and 24 are likely to place more importance on trust and reputation, they are also more likely to buy from a private individual than from a dealer. Again, this is possibly down to being restricted on how much they can spend and a desire to find a bargain. Buying privately is a riskier way of buying a used car, because there is even less guarantee that the seller is the genuine owner and the car is a legitimate car.

For example, last year the total number of cars classed as write-offs by insurance companies, increased by nearly nine per cent. Of all those classed as write-offs, nearly 30 per cent were deemed too dangerous to return to the roads, but some of them still do. These are not likely to have been repaired safely and could potentially be very hazardous if involved in a further bump.

The remaining 70 per cent of write-offs are usually uneconomical to repair and so their value drops significantly, but many can still be found floating around the used car market at higher prices than they are worth. A great way for young consumers to protect themselves is by carrying out an AA Car Data Check.

Many cars that will have been in bumps over the years and these bumps could have had an impact on the general running of the car but will not have been recorded by insurance companies. An AA Vehicle Inspection highlights any problems that could affect the value of a used car or the purchaser’s decision to buy it.

“If the car turns out to be stolen, written-off or with finance still outstanding, whether it costs £5000 or less, it’s still a lot of money for a young car buyer to lose,” adds Kirk Fletcher. “Whatever the price of the vehicle, getting an AA Car Data Check done to ensure its integrity and an AA Vehicle Inspection to ensure the car is not going to end up costing you more, is a very small price to pay.”

The research was completed by Experian’s consumer research service, Canvasse Opinion, which surveyed a representative sample of 2,320 adults in the UK online, between 11 and 17 January 2007.