Is Longer Vehicle Life Span Changing How People Buy Cars? New AutoMD.com Survey Says Yes ...
Study shows only one in four consumers are opting to purchase new vehicle, most opting for pre-owned and factoring in replacement parts cost; vehicle cost outweighs all other purchase decision influences, with majority defining a 'good deal' as at or below invoice
CARSON, Calif., May 24, 2016 /PRNewswire/ -- A new survey from AutoMD.com indicates that the lengthening vehicle ownership cycle is impacting vehicle purchasing. The survey, conducted online among over 1,000 vehicle owners, 59% of whom said they planned to purchase within six months, reveals that the majority are opting for a pre-owned vehicle, with three quarters saying that their purchase decision would be influenced by the cost of replacement parts.
And, while price trumped every other purchase decision factor, knowing a vehicle will last ten years was the second most important influencer. In addition, these consumers want a good deal, with the majority defining a good deal as at or below invoice pricing – and they are opting for third party research sites and Google, not dealership websites, to make sure they get that deal.
"At AutoMD.com, we have been reporting for years1 on the lengthening vehicle ownership cycle. This survey indicates how that extended vehicle lifecycle is impacting consumer vehicle purchase decisions," said Tracey Virtue, vice president of AutoMD.com. "Clearly many consumers embrace the notion of a pre-owned vehicle as a viable primary vehicle, and are looking to keep them running for the long term."
SURVEY HIGHLIGHTS
Pre-owned Vehicles Rule – Only One in Four Plan to Buy New
When asked what kind of vehicle they would purchase for their next primary vehicle, only one in four say they plan to buy new; but 76% will purchase a pre-owned vehicle, and over half (55%) are opting for a vehicle that is more than two years old.
| What kind of vehicle are you most likely to buy as your next primary vehicle? |
|
| A Pre-Owned vehicle, older than 2, but less than 10 years old. |
45% |
| A new vehicle. |
24% |
| A Pre-Owned vehicle, less than 2 years old. |
21% |
| A Pre-Owned vehicle, more than 10 years old. |
8% |
| A Pre-Owned vehicle, and a real fixer upper! |
2% |
And, confirming the lengthening buy cycle, 32% say their current primary vehicle is six years or older with 12% reporting that they are driving a vehicle that is over 10 years old.
Replacement Parts Key Consideration – Keeping That Vehicle Running for the Long Term
Seventy-four percent reported that replacement parts would be a consideration when purchasing their next vehicle. Interestingly, of those who said it was not a consideration, over half said it was because it either did not occur to them or that they did not know where to look for that information. For the rest, style/brand trumped replacement parts cost.
| Some vehicles are more costly to repair than others because their |
|
| Yes |
74% |
| No |
26% |
Vehicle Price Top Influencer, but Longevity Close Behind
Not surprisingly, when asked what would influence their vehicle decision most, price came first, but knowing that the car would last for ten years was number two.
| Next time you purchase a primary vehicle, please indicate what will influence |
|
| Price (I will be shopping within a certain budget range) |
23% |
| Longevity, i.e. knowing that car will last for at least ten years |
18% |
| Utility (I will shop for a vehicle based on practical considerations – big enough for kids/family; useful for hauling; 4WD because I live in the mountains, etc.) |
17% |
| Cost to repair (I will shop for a vehicle that is not costly to maintain) |
15% |
| Fuel-efficiency/gas mileage |
14% |
| Style (I will make my decision based on the vehicle's appearance, trim etc.) |
14% |
The majority of respondents said that they would be looking for a vehicle that was about the same, or less than, the price of their current vehicle, although over one third were willing to pay more. And, they are looking for a good deal, with 62% saying they define a 'good deal' as being at or below invoice pricing.
Electric/Hybrids Not High on the Vehicle Shopping List, but Brand Loyalty, Ford, Chevrolet and Toyota Are
The good news for automakers is that, although most of these consumers are focused on pre-owned purchases, nearly half said they were likely to purchase the same brand as their current vehicle, with 29% reporting they would choose a different brand. Only 11% were interested in a hybrid or electric vehicle, reflecting how low on the list of top purchase influences fuel efficiency ranked. When asked specifically what brand they would pick, Ford was chosen by the largest number, followed by Chevrolet and Toyota.
Third Party Research and Google Driving Vehicle Information, Dealership Sites Rank Low
Third party research sites such as Edmunds and Kelley Blue Book were ranked as the most valuable online resources when making a vehicle purchase decision. Google tied with third party buying sites such as AutoTrader and TrueCar as second most valuable. Auto dealership websites ranked second to last in value.
The AutoMD.com survey was conducted among 1,142 car-owners in 2015/2016.
About AutoMD.com
AutoMD.com™ (www.automd.com) is a leading comprehensive and unbiased free online automotive repair resource designed to empower car owners with the best way to repair their vehicles. Backed by a team of automotive data specialists and certified auto mechanics who are advocates for the car owner, AutoMD.com allows both car owners and DIYers to 1. Get instant comparative quotes on repair jobs from local repair shops, 2. Find the right local auto repair shop at the right price for their issue, 3. Know how much auto repairs should cost, 4. Troubleshoot car problems, 5. Get auto repair questions answered by the AutoMD.com community, and 6. Understand the steps needed and the time it should take with How-to Auto Repair guides. AutoMD.com was named Best Automotive Website in the 8th annual American Business Awards, also known as the Stevie® Awards.
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Media Relations
Melanie Webber, mWEBB Communications, (424) 603-4340, [email protected]
Elizabeth Johnson, mWEBB Communications, (213) 713-4865, [email protected]
1 https://www.automd.com/about-automd/press/09-15-2015/
Photo - http://photos.prnewswire.com/prnh/20160519/369957
SOURCE AutoMD.com
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