Table of Contents
Issues in the Market
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- Key issues
- Definition
- TGI lifestage definitions
- Abbreviations
Future Opportunities
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- Usage rather ownership
Market in Brief
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- Falling demand for cars
- Scrappage scheme lifts sales
- New car sales to fall back in 2010
- But UK market suffers from a structural problem
- The purchase process
- Price, fuel economy and reliability is what buyers want
- Brand aspirations limited by budget
- Rational or emotive brands?
Market Background
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- Key points
- New and used car sales fall
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- Figure 1: New car registrations and used car sales, 2004-09
- Figure 2: Private new car registrations and used car sales, 2004-09
- Car sales and interest rates
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- Figure 3: Total new and used car sales and interest rates, 2001-09
- The importance of finance
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- Figure 4: Trend in retail car sales and car finance penetration, 2003-09
- Figure 5: Trend in retail car sales and car finance penetration, 2003-09
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- Figure 6: Expected method of payment for next car, new and second-hand, December 2008
- The price overlap between new and used
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- Figure 7: Expected cost of car purchase, new and second-hand, December 2008
Car Market Forecasts
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- Value of car sales
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- Figure 8: Volume sales of new and used cars, 2004-14
- Figure 9: Total value of car sales, 2004-14
- New car sales
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- Figure 10: Value of new car sales, 2004-14
- Used car sales
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- Figure 11: Value of used car sales, 2004-14
- Factors used in the forecast
- Government support
- Increasing legislation
- EU legislation – greener cars
- An electric future?
- Smarter and safer cars
- Multiple car ownership grows
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- Figure 12: Number of cars owned, by individual households, 1985/86-2006
- Figure 13: Number of cars per household and cars per adult aged 17+, 1985/86-2006
- Recent purchasing of cars declining
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- Figure 14: When obtained (only car or most recently obtained car), 2004-09
- Replacement cars dominate but on the decline
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- Figure 15: First, additional or replacement car (intend to buy in the next 12 months), 2005-08
- Growth in demand for diesel cars
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- Figure 16: New car registrations, by fuel type, 2000-09
- But low take-up of alternative fuels
Broader Market Environment
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- Key points
- Continued growth in PDI and consumer expenditure
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- Figure 17: GDP, PDI, consumer expenditure and savings, at current prices, 2004-14
- Population growth in key groups
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- Figure 18: Trends in the age structure of the UK population, by gender, 2004-14
- Growth among key car users
- ABC1s on the rise
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- Figure 19: Forecast adult population trends, by socio-economic group, 2004-14
- Number of families to remain static
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- Figure 20: Forecast adult population trends, by lifestage, 2004-14
- Smaller households and smaller cars?
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- Figure 21: UK households, by size, 2004-14
- Consumer spending priorities
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- Figure 22: UK spending priorities for year ahead, 2005-09
Car Ownership and Purchase Intentions
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- Key points
- Car ownership trends – All adults
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- Figure 23: UK car ownership, 2004-09
- Car purchasing intentions – all adults
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- Figure 24: Car purchasing intentions of all adults (intend to buy in the next 12 months), 2005-08
- Car purchasing intentions – car owners
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- Figure 25: Car purchase intention, by current car ownership status, June 2009
The Purchase Process – Purchase Funnels
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- Key points
- Emotional or rational decision making?
- The purchase process
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- Figure 26: The car purchase process – purchase funnels
- Purchase funnel stages
- The importance of the role of the dealer and the salesman
- An ongoing relationship with a dealer is important
- The importance of the role of the internet
- Car brand selection
- Brand re-evaluation
- Brand re-evaluation – a case study
- How Alfa Romeo replaced Audi!
Car Purchasing – Which Features and Benefits Matter
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- Key points
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- Figure 27: Most important features sought when buying a car, December 2008
- New car buyers emphasise safety, style, design, comfort and quality
- Used car buyers emphasise price, reliability and fuel consumption
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- Figure 28: Most important features sought when buying a car, new and second-hand, December 2008
- Male and female differences
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- Figure 29: Most important features sought when buying a car, men and women, December 2008
- Influences upon brand selection
Brand Preferences and Selection
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- Key points
- Brand preferences
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- Figure 30: Brand preferences of those intending to buy a new or second-hand car, June 2009
- New and second-hand brand preferences
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- Figure 31: Brand preferences of those intending to buy, new and second-hand, June 2009
- Figure 32: Brands with a stronger appeal as a new car purchase than as a used car purchase, June 2009
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- Figure 33: Brands with a stronger appeal as a used car purchase than as a new car purchase, June 2009
The Purchase Process – Future Car Buyers
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- Key points
- New and used car buyer differences
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- Figure 34: Agreement with attitudes towards buying next/first car by whether likely to buy a new or used car, June 2009
- How long to purchase?
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- Figure 35: Length of time from considering make and model to final purchase, June 2009
- Attitudes towards car purchase by car brand
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- Figure 36: Agreement with attitudes towards buying next/first car, by choice of car brand, June 2009
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- Figure 37: Agreement with attitudes towards buying next/first car, by choice of car brand, June 2009
- Brand selection
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- Figure 38: Brand selection, by purchase intention, June 2009
- The selection process – brands or models?
- Rational or emotional brand purchasing?
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- Figure 39: The car brand selection process
- Rational brands
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- Figure 40: Rational purchase car brands, June 2009
- Emotional brands
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- Figure 41: Emotional purchase car brands, June 2009
- Rational emotional brands
- Analysis insight
- Lifelong brand loyalty?
- Brands or models?
- The key is emotive brand benefits – or dealer service
- The budget is the main determining factor
- Grand designs
- Niche models are not enough
- Building an emotive volume brand
- Is the purchase process emotive or rational?
Appendix
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- Figure 42: Ownership of car, by demographics, June 2009
- Figure 43: Likely to buy new or used car in next 12 months, by demographics, June 2009
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- Figure 44: Length of purchase process, by demographics, June 2009
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