Car buyers waiting for job security

A third of consumers say only job security would make them buy a car this year, according to the latest survey from leading vehicle information organisation HPI, in association with Car Dealer, a prominent magazine for the motor trade. Despite news of global economic recovery plans, the recession clearly continues to impact on home soil, with people’s buying decisions swayed by their head and not their heart.

Daniel Burgess, Automotive Director at HPI comments, “No one will be surprised to see that 79% of those surveyed regard lower prices as the most likely influence on their buying decisions and over two thirds said the credit crunch means they are more likely to buy used instead of new. This is despite a focus on the new and nearly new car market by the Government with its Act on CO2 campaign and the introduction of a used car scrappage scheme. Interestingly, the most popular incentive was ‘buy one, get one free’, catching 32% of the vote from consumers. However, 31% say that cheap finance would encourage them to visit a showroom.”

When asked how they will fund the purchase of their next car, 47% of buyers said they would use savings, followed by a bank loan (29%) and just 20% choosing dealer finance. “It is hardly surprising that nearly 50 per cent of people are considering using their own savings to finance their next purchase. They might as well use them given there is currently little or no return on savings account in the current climate,” adds James Baggott, motor industry expert and editor of Car Dealer. “And it seems buyers still fully intend to have exactly the car of their dreams, too. 25% say they will choose a prestige car next. In contrast, only five per cent will choose a ‘green’ model. However, what perhaps indicates the future shape of car retailing as the country comes out of recession is that a whopping 88% said that irrespective of what type of vehicle they were looking to buy, they would research their purchase online even if they did not go on to buy online,.”

2009 has already seen a new breed of buyer, who will demand a better package than ever before, combining cheap finance with great purchase prices. Burgess concludes, “Whilst all is being done to encourage motorists to be environmentally conscious, the bottom line remains that it is the cost of the car and the finance deals on offer to support that purchase, which will rejuvenate the motor industry.”