- November 15, 2018
- Posted by: Kari Jones
- Category: Automotive Industry, Tips For Dealers
The majority of buyers are moving away from the traditional method of purchasing a car, that is, paying the full cost outright, although findings from the latest Auto Trader Market Report reveal that a significant proportion of consumers still want to own a vehicle.
Of the total sample, 80% still want to own a car, preferring this option over car finance and sharing concepts.
Generation Z Are Most Keen to Own
Typically, the attitudes of the younger generation correlate most closely with predictions for future market trends, but surprisingly, the report showed that respondents aged between 16 and 21 were the most eager to own a vehicle.
When asked, “Do you think you will always own your own car?” 86% confirmed that they did believe this, despite signals that the future of mobility is moving towards a model based on less permanent options.
81% of respondents from this age group also believe they will want to and be able to buy a brand-new car by the time they are 25. With so many young people determined to buy vehicles, it may be a wise move for dealers to target offers toward this age group.
Auto Trader’s research also investigated people’s attitudes to car sharing. More than half (52%) of individuals said they wouldn’t consider a car-sharing service, with the most popular reasons being that it would be inconvenient for them and they’d simply be unwilling. On average, car owners would want a 55% saving to switch to sharing.
98% of motorists who have entered a car finance agreement agreed that they feel like they own the car, even though it legally belongs to the finance provider. Last year, 30% of used cars were bought on finance, and according to Auto Trader’s report, this will increase to 40% in the next five years.
These statistics contradict what was found about attitudes to finance versus ownership. It is possible that people may not fully understand finance options or know what to expect from an agreement. Car finance packages should therefore be presented as clearly as possible and dealers should emphasise their flexibility.
As more people begin to understand and try car finance, attitudes towards mobility options that don’t involve ownership should start to become more positive.
To find out how Click Dealer can help your dealership make the most of the remainder of 2018, get in touch today by emailing us at firstname.lastname@example.org, calling us on 01782 478220 or sending us a message via our contact page!