Car buyers buck credit crunch trend

Whilst soaring fuel costs and the impact of the credit crunch means buyers will be thinking carefully before parting with their cash, Exchange & Mart reveals that 65% of over a 1000 used car buyers surveyed, intend to make a purchase within the next six months. Exchange & Mart is urging dealers to think cleverly about their marketing activity and to create packages designed to entice buyers.

“Our research showed that many of the 65% who are actively looking to buy, are actually planning to do so within the next three months, suggesting a promising September plate change,” says Debra Healy, Digital Director at Exchange & Mart. “Interestingly, the remaining 35% of people surveyed said they were considering making a purchase, but not necessarily planning on buying within the next six months. This suggests that the research period of buying a car could be longer than dealers may think, making the marketing of stock ever more challenging.”

According to the SMMT Q1 figures, used car sales only slipped by 1.1%, from 1.91 million to 1.89 million units, indicating some market stability. However, March sales saw a slump, down to 654,502 from 690,000 in 2007. The Q2 figures will offer a key indication of where the used car market is going.

Healy adds, “There are a number of factors putting pressure on buyers, which means dealers are right to be cautious over the next few months. The price of fuel and changes to vehicle excise duty are both taking their toll on used car buyers. Add to that capital allowances and rising congestion charges for gas-guzzlers, fuel-efficiency becomes an even more crucial factor for potential customers.

“Although the used car market is showing some resilience, mounting economic pressure means dealers need to make sure they can get through the lean times. But they have done so before, and can do so again. While price is always the underlying factor influencing the decision to purchase, buyers will be looking to find the best package, as well as the best price. They need to feel they are getting a package that saves them money and hassle long after the initial expense of buying. Savvy dealers need to make sure they can respond appropriately and quickly to market demands, offering buyers long-term value, as opposed to simply slapping a bargain price across the windshield.”