Study shows only one in four consumers are opting to purchase new vehicle, most opting for pre-owned and factoring in replacement parts cost
Carson, CA — May 24, 2016 — 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 life span of 10 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.”
The following are highlights of the survey:
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.
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.
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Dealer Marketing Magazine
Author: Digital Dealer
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