Kids now have a bigger say in the car buying decision

Changes in family life have had a big impact on the automotive industry, as children as young as eight influence the car buying choice, according to Experian, the global information solutions company.

These are the findings from consumer research conducted by Future Foundation, an Experian company, which has identified four key factors that determine car purchases:

1. The family influence

There are now few households where men alone have the sole task of deciding what car is to be purchased. Women now have a bigger influence and children over the age of eight are also consulted more for their opinion, which was never the case in the past.

2. The lifestyle factor

In addition, lifestyles have changed significantly over the years. With an increase in divorce, second marriages and single parents, lifestyles are more volatile and can no longer be pigeonholed into simply age groups, as was previously the case. Despite this, many motor retailers still target potential customers by categorising them in this way.

3. Wealth

Wealth is another key factor, with consumers more affluent than ever before. The average income is now 50 per cent higher than it was 15 years ago. Yet, according to Future Foundation’s research, despite having more money consumers are more focused than ever before on price – expecting higher standards and greater value for money. With the average income expected to increase by 50 per cent over the next 15 years, the industry can expect consumer demands to intensify.

The perception of cars has also changed. In the past, cars were considered a luxury commodity, only bought by those who could afford them. However, almost anyone can buy a car these days and with more and more people owning cars, they are no longer classed as luxury items.

4. The Internet

The Internet is now at the heart of the car purchasing decision. Whilst less than two per cent of consumers have bought a car online, over 60 per cent of car buyers compare cars online before parting with their cash.

Rob Whalley, Managing Director of Experian’s Automotive division, said: “The trends highlighted by Future Foundation show why there is a real need for motor retailers to become more adept at running targeted marketing campaigns. Instead of simply categorising people by age, dealers need to understand more about who and where their potential customers are, not only in terms of looking for new prospects, but also by looking internally to their existing customer base. Ongoing data cleansing programmes should be employed to ensure data is up-to-date, so money isn’t wasted on mailing unprofitable or non-existent customers.

“With the level of importance consumers place on the Internet, dealers need to maximise their exposure in this area, not only by making their own site as user friendly as possible, but by also linking into other relevant external sites and listing their stock.

“With car prices coming down, endless lines of special offers both in the used and new car markets and an environment where there are more cars than consumers, dealers need to maximise the profitability of both new and used car sales. They can achieve this by taking steps to better understand their current and potential customers and employing intelligent marketing techniques, which help them better target, acquire, manage and maximise customer relationships.”