Consumer Behaviour When Purchasing Cars · Information sources used prior to purchasing x...
27
Consumer Behaviour When Purchasing Cars April 2016 1
Transcript of Consumer Behaviour When Purchasing Cars · Information sources used prior to purchasing x...
Consumer Behaviour When Purchasing Cars
April 2016
1
Background & Objectives
• On behalf of the CCPC, Behaviour & Attitudes undertook two concurrent surveys on consumer’s behaviour in relation car purchasing
1. A face-to-face Barometer survey of 1,008 Irish adults.
2. An online survey of 350 Irish adults (a booster sample of adults who have purchased a car in the last 5 years).
• The results of these two surveys have been combined and the resulting data weighted in line with overall population. The effect of incorporating the online data into the Barometer survey has been to increase the number of respondents with specific types of finance.
Last car purchasedBase: All adults (1,358)
Q.1Q.2
When did you last buy a car?And was this last car purchase a new car or used (second hand) car purchase?
2 in 5 (41%) of those who have purchased a vehicle did so in the last three years (and 3 in 5 since 2012). Over a quarter (28%) last purchased a new car.
70%
30%
No
Yes
Ever Purchased a Car When Last Car Was
Purchased(Base: All ever purchased a car – 1,082)
10
17
14
10
10
6
7
3
6
3
4
9
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Before 2006
%
28
72
New car
Used car
New/Used Car Purchased on
Last Occasion(Base: All ever purchased a car – 1,082)
%
Where last used car was purchased (1 of 2)
Base: All adults purchased a used vehicle (710)
Q.1Q.2
When did you last buy a car?And was this last car purchase a new car or used (second hand) car purchase?
Those over the age of 50 and the social economic grouping ABC1 are more likely to have purchased from an authorised dealership, while those under 35 are much more likely to have opted for a private individual sale. Men are more inclined to use a private individual sale
than women, whereas women favour independent dealers substantially more so than men.
*Note: Auctions included in other due to low volume.
38 40 36
13
3037
4857
4233
25 21 31
21
23
27
27
23
25
26
34 3731
59
4432
2420
3038
2 3 3 6 3 4 1 0 3 3
ALL ADULTS Gender Age Social Class
Male Female U25 25-34 35-49 50-64 65+ ABC1 C2DE710 342 368 37 192 272 137 72 378 297% % % % % % % % % %
Authoriseddealership
Independent garage/dealer
Private individualsale
Other*
Where last used car was purchased (2 of 2)
Base: All adults purchased a used vehicle (710)
Q.1Q.2
When did you last buy a car?And was this last car purchase a new car or used (second hand) car purchase?
Dublin-dwelling car purchasers are much more likely to have purchased from an authorised dealership, whereas rural car purchasers are more likely to have used a private individual sale.
*Note: Auctions included in other due to low volume.
3847
34 38 3340
34
25
24
2527
25
2525
34 2539 32
40 31 38
2 4 1 3 2 4 2
ALL ADULTS Region Social Class
Dublin Rest of Leins
Muns Conn/Uls Urban Rural
710 151 172 249 138 479 231% % % % % % %
Authoriseddealership
Independent garage/dealer
Private individual sale
Other*
Sources used to identify the car to purchaseBase: All ever purchased a car (1,082)
Q.3aQ.3b
When purchasing your car what sources of information did you use to identify the car?Which did you find the most important source of information?
While almost half (48%) used online sources as part of their research, visiting garage forecourts was by far the source seen to be of most importance.
53
13
11
10
2
63
34
21
24
8
10
Visit garage forecourts
Online- car dealer websites
Online - general classified sites (on DoneDeal,Gumtree etc)
Online - car sales websites (i.e. Car BuyersGuide, AutoTrader, Carzone, Cars Ireland)
Newspaper/Magazines/Adverts/Classifieds
Other
Most Important
Source
%
All
Sources
%
48% used online sources when
researching what car to buy
Information sources used prior to purchasing x demographicsBase: All ever purchased a car (1,082)
Q.3 When purchasing your car what sources of information did you use to identify the car?
Visiting garage forecourts the most popular source of information when identifying a car to purchase. This is mainly driven by those over the age of 50 and those who are purchasing a new car. Online is more
prominent when buying second-hand but visiting forecourts is still the most used method.
Total
Gender Age Social Class Area Car Purchased
Male Female -24 25-34 35-49 50-64 65+ ABC1 C2DE F Urban Rural New CarUsed Car
1,082 529 553 47 252 389 248 146 603 423 56 746 336 372 710
% % % % % % % % % % % % % % %
Visit garage forecourts 63 62 64 39 50 63 74 75 66 59 75 64 61 84 55
Online - car dealers websites 34 33 36 44 44 39 30 11 40 33 16 36 31 35 34
Online - car sales websites such as Car Buyers Guide, AutoTrader, carzone, carsIreland.ie etc.
24 24 24 34 32 30 16 4 25 25 11 25 23 16 27
Online - general classified sites such as donedeal, gumtree
21 22 20 49 36 22 7 4 19 24 13 20 22 5 27
Newspaper/Magazine Adverts/Classifieds
8 9 6 12 10 6 10 6 8 8 6 8 8 7 8
Other 10 11 9 11 8 10 10 13 9 12 7 9 12 5 12
Any Online 48 47 49 71 64 53 37 16 51 48 22 48 47 38 51
Checks made prior to purchasingBase: All adults who purchased a used vehicle (710)
Q.4a Having identified a potential car what checks did you complete prior to purchasing?
While 3 in 5 (59%) checked all documentation/service history, and half (49%) had a mechanic check the car, just 1 in 6 (17%) paid for a background check on the car.
59
49
34
23
18
17
3
17
Check all Documentation / Service history
Have a mechanic check the car
Check/Ask if car was crashed
Check/Ask if the Odometer reading was genuine
Check if any outstanding finance on the car
Paid for a background check (using cartell.ie, motorcheck.ie etc.)
Other
Didn’t carry out any checks
%
Checks made prior to purchasing x demographicsBase: All adults purchased a used vehicle (710)
Q.4a Having identified a potential car what checks did you complete prior to purchasing?
Those under the age of 25 and those living in Dublin are the most likely to have carried out any checks on the car. Those over the age of 50 are more inclined not to have carried out any checks.
Total
Gender Age Region Area
Male Female -24 25-34 35-49 50-64 65+ DublinRest of Leins
MunsConn/
UlsUrban Rural
710 342 368 37 192 272 137 72 151 172 249 138 479 231
% % % % % % % % % % % % % %
Check all Documentation/service history 59 61 57 69 60 62 48 60 72 50 53 62 60 58
Have a mechanic check the car 49 49 49 61 53 51 37 42 52 48 48 46 50 46
Check/Ask if car was crashed 34 34 33 43 39 34 30 19 30 27 38 40 34 33
Check/Ask if the Odometer reading was genuine
23 25 21 37 23 23 21 18 27 22 21 23 25 20
Check if any outstanding finance on the car 18 18 17 28 20 17 16 11 32 15 15 9 21 11
Paid for a background check (using cartell.ie, motorcheck.ie etc.)
17 17 17 20 17 19 15 13 33 11 12 14 21 11
Other 3 4 3 2 4 3 6 1 4 3 6 1 3 3
Didn’t carry out any checks 17 16 19 10 16 14 25 22 12 20 20 15 15 21
Reason for not running background/finance checksBase: Purchased a used vehicle without carrying out background/finance checks (520)
Q.4b You didn’t “complete a background check (using cartell.ie, motorcheck.ie etc.)” or “check if any outstanding finance on the car”, why did you not carry out any of these checks?
There is basic unfamiliarity with the concept of running these types of checks.
19
16
16
12
6
5
21
14
Didn’t think about doing it
Never heard of it
Asked a friends point of view on the car
Happy to take a chance/happy to risk not doing it
Think it is too expensive to do
Don’t know how to do it
Other reason
Don’t know/No reason
%
Reason for not carrying out background/finance checks prior to purchasingBase: Purchased a used vehicle without background/finance checks (520)
Women, those under the age of 35 and those living in urban areas more likely to say they didn’t think about carrying out these types of checks.
Total
Gender Age Region Area
Male Female -24 25-34 35-49 50-64 65+ DublinRest of Leins
MunsConn/
UlsUrban Rural
520 247 273 23 137 196 102 62 80 136 197 107 335 185
% % % % % % % % % % % % % %
Didn’t think about doing it 19 14 26 23 25 19 11 22 21 15 20 23 22 16
Never heard of it 16 16 15 11 16 18 10 17 19 15 21 8 15 17
Asked a friends point of view on the car 16 16 15 23 19 14 14 16 9 14 16 22 16 16
Happy to take a chance/happy to risk not doing it
12 15 8 15 14 14 7 6 10 13 10 13 12 11
Think it is too expensive to do 6 7 5 11 10 5 8 1 5 3 5 12 6 7
Don’t know how to do it 5 3 7 13 6 5 2 2 1 5 6 6 6 3
Other reason 21 25 16 14 13 19 34 23 24 19 26 15 18 25
Don’t know/No reason 14 11 17 12 10 12 19 18 13 22 10 11 15 12
Q.4b You didn’t “complete a background check (using cartell.ie, motorcheck.ie etc.)” or “check if any outstanding finance on the car”, why did you not carry out any of these checks?
Factors of importance during decision making process (1 of 2) Base: All ever purchase a car (1,082)
Q.8 When purchasing your car how important were each of the following factors on your purchasing decision. Please rate on a scale of 1 to 7 where 1 is not very important and 7 is very important.
70 6859 58 55
16 18
19 19 21
8 812 12 11
3 35 7 6
1 1 3 2 31 1 1 2 30 1 1 0 1
7
6
5
4
3
2-1
DK
Mechanical Reliability PriceCar Safety features
Fuel Efficiency (MPG)Motor Tax
which applies
% % % % %
Mean score: 6.48 6.45 6.24 6.16 6.08
VERY
IMPORTANT
NOT VERY
IMPORTANT
Mechanical reliability and price are the two most important factors when considering purchasing a car.
Q.8 When purchasing your car how important were each of the following factors on your purchasing decision. Please rate on a scale of 1 to 7 where 1 is not very important and 7 is very important.
55 52 5342 43
18 19 19
18 15
12 15 11
16 18
8 87
9 11
2 34
5 5
4 2 5 8 71 1 2 3 1
7
6
5
4
3
2-1
DK
Reputation of the sellerInformation
given by the sellerGuarantee/ warranty
providedLevel of CO2 emissions
Convenience of seller/garage
% % % % %
Mean score: 6.04 6.03 5.94 5.58 5.55
VERY
IMPORTANT
NOT VERY
IMPORTANT
Irish adults who have purchased a car claim to be least swayed by level of CO2 emissions and convenience of seller/garage during the decision making process.
Factors of importance during decision making process (1 of 2) Base: All ever purchased a car (1,082)
Are the same consumer rights applicable when purchasing from a private seller as when purchasing from a trader?Base: All ever purchased a car (1,082)
Q.9 Do you believe that you have the same rights when purchasing from a private seller as you do when purchasing from a trader?
30 32 29
49
31 31 29 26 28 31
58 5857
42
56 58 6162 61 56
12 10 14 9 14 12 10 13 11 12
Yes
No
Don’t know
Those under the age of 25 are most inclined to believe that the same rights are applicable when buying privately as from a trader.
Ever Bought a
Car
Gender Age Type
Male Female U25 25-34 35-49 50-64 65+ New Used
% % % % % % % % % %
Car Financing
Which first: finance or car?Base: All adults purchased a car (1,082)
Arranging finance and budget first is more common amongst those purchasing a used car than those purchasing a new car. Those under 25, and those living in Dublin and Munster also more likely to
budget first.
Q.8 When considering purchasing a car did you arrange your finance and budget first and then go looking for a car, or did you choose your car first and then arrange the finance?
54%
46%
Choose your car first
and then go
arranging the finance
Arrange finance
and budget firstly
and then go
looking for
a car
Arrange finance and budget first x
demographics
54
5554
715555
4954
5357
47
6442
6841
4757
Total
Male
25-34
50-64
C2DE
Leinster
Conn/Ulster
New car
%
Alternative finance options/products comparedBase: All adults purchased a car (1,082)
When considering alternative finance options, products, Irish adults more likely to think of bank/Credit Union loans. Only a fifth (19%) considered PCP finance from their dealership, and about a quarter looked at it in total.
Q.6a
Q.6b
When arranging finance for the car did you compare alternative options/products which may be available to you in the market?What alternatives did you consider?
75%
25%
No
Yes
Alternatives considered(Base: All considered alternative
options/products (299))
64
44
19
15
14
6
3
21
Bank/finance loan
Credit Union
PCP finance from dealer
Other dealer finance
Loan from family/friend
PCP finance from…
Other
Any PCP
%
Did you compare alternative
options/products which may be available?
New car buyer 32%
Used car buyer 23%
Finance Considered vs. Finance PurchasedBase: All compared alternative options/products (299)
64
44
19
15
14
6
3
Bank finance/loan
Credit Union
PCP finance from dealer
Other dealer finance
Loan from family/friend
PCP finance from independentprovider
Other
%
Finance Considered Finance Purchased (& made comparisons)
Own Money
Bank Loan CU LoanHire
PurchasePCP Trade-in
150 62 72 30 27 46
% % % % % %
61 70 68 67 76 61
46 49 38 48 52 57
20 20 18 19 36 17
9 21 18 30 31 12
21 15 11 19 10 14
5 10 10 7 18 6
5 - 2 - - -
Q.5aQ.6b
How did you finance this purchase?What alternatives did you consider?
Those who bought PCP and made comparisons are considerably more likely to have reviewed multiple options.
How are finance options/products compared?Base: All considered alternative options/products when purchasing a car – 29….a quarter of buyers only
Men, those aged 35-49 and those purchasing a new car were more inclined to compare interest rates. Women were more likely to check the monthly repayment figures, while those purchasing a used car over indexed on ‘just checked they would finance/lend’.
Q.6c How did you compare?
61
45
39
21
2
Compared interest rates
Compared total cost of financefigures
Compared monthly repaymentfigures
Just checked they wouldfinance/lend
Loan from family/friend
%
Gender Age New or Used
Male Female -24 25-34 35-49 50-64 65+ New car Used car
148 151 16 81 123 55 24 135 164
% % % % % % % % %
67 55 54 63 67 48 65 73 55
47 44 36 43 47 56 26 52 42
36 42 28 35 48 37 17 51 33
18 25 14 26 20 23 12 11 26
2 3 - 1 2 2 13 1 3
How purchase was financedBase: All adults purchased a car (1,082)
Q.5a How did you finance this purchase?
65
20
11
10
5
3
2
Own resources (money)
Credit Union loan
Trade-in
Bank loan
Hire purchase arranged with seller
PCP
Other
%
Two thirds of people (65%) purchased their last car using (at least in part) their own resources (money). A fifth (20%) sought a loan from the Credit Union.
Higher among men, U25s,
over 65s and Dubliners
Higher among 35-49s and those living in
rural areas or buying second-hand
Higher among 35-64s, ABC1, new car buyers
Higher buying new (7% versus 1% second-hand)
Higher 35-64 and buying new
5
3
3
2
11
2
20
16
Proportion of full purchase price covered by each methodBase: All adults purchased a car (1,082)
56% of Irish adults used their own resources (money) to cover 100% of the cost of the last car they purchased. Where bank finance, PCP or HP use, it tends to cover a wider amount overall.
Used
Used to cover 100%
65
56
(86% of all who used cash)
(78% of those who use the credit union)
(Just 21% of those who
used a trade in)
Used
Used to cover 100%
10
7
(67% of those used a bank
loan)
(66% of those who used HP)
2
2
(94%)
(65% of those who used
PCP)
Own resources
(money)
Credit Union
loanTrade-in
Bank loan Hire purchase PCP Other
Q.5a How did you finance this purchase?
Q.5b And roughly what proportion of the full purchase price/consideration was by each method (i.e. if had trade-in and finance, etc.)
Length of time spent researching pre-purchaseBase: All adults purchased a car in past 5 years (350)
Q.7 Please give your best estimate of the length of time that you spent in hours researching/selecting the make and model and car of your choice at home (via e.g. online, telephone etc.)
Men, those in the middle age range and those who purchased a used car more inclined to spend longer researching at home pre-purchase.
9.710.7
9.07.9
9.3
11.1
8.2 8.8 9.310.0
ALLADULTS
Male Female U25 25-34 35-49 50-64 65+ New car Used car
Average
(hours)
GENDER AGE
Researching/selecting the make and model and car of your choice at home (e.g. via online,
telephone, etc.)
PURCHASED
Online survey
only
Length of time spent viewing pre-purchaseBase: All adults purchased a car in past 5 years (350)
Q.7 Please give your best estimate of the length of time that you spent in hours physically viewing cars prior to deciding on the car of your choice (include travel times here)
7.28.4
6.5
4.9
6.77.6 7.9
6.78.0
6.6
ALLADULTS
Male Female U25 25-34 35-49 50-64 65+ New car Used car
Average
(hours)
GENDER AGE
Physically viewing cars prior to deciding on the car of your choice (include travel times)
PURCHASED
Online survey
only
Going by average time spent on last purchase, more time viewing cars is spent by men, those between the ages of 35 and 50 and those purchasing a new car.
Length of time spent researching finance optionsBase: All adults purchased a car in past 5 years (350)
Q.7 Please give your best estimate of the length of time that you spent in hours considering/ researching your options/alternatives for financing the car.
On average car buyers in spend 3.8 hours considering car finance options. Those under the age of 25 spent the least amount of time researching the different options and alternatives available for financing their car purchase.
Average
(hours)
GENDER AGE
Considering/researching your options/alternatives for financing the car.
PURCHASED
Online survey
only
3.84.4
3.3
1.4
4.5 4.1
2.2
4.3 4.53.1
ALL CARBUYERS
Male Female U25 25-34 35-49 50-64 65+ New car Used car
Key Findings
Key FindingsThe Decision-Making Process: Car Selection• When choosing a car two thirds (63%) visit garage forecourts, with over
half (53%) considering this their most important source of information. The popularity of the forecourt is mostly driven by older adults and those looking to purchase a new car.
• Half (48%) nominate online sources as an element of their research, and 35% say it is the key conduit. The use of online sources is more popular among those under the age of 35 and those looking at used cars.
• In terms of deciding factors when looking at cars to purchase, the key aspects are mechanical reliability (70% very important) and price (68% very important).
Key FindingsThe Decision-Making Process: Finance• Over half (54%) say that for their last purchase, they chose to arrange
their finance first and then select the car. This is more characteristic of used car buyers (57% sort out the money first) than of new buyers (only 47% arrange the finance first.)
• Just 1 in 4 say they reviewed alternative finance options, with this being more typical of new (32% did) buyers than of used (23% did.) Such comparisons most typically involve comparing interest rates, with fewer comparing the total cost of finance and fewer still just checking on the amount of monthly repayments.
