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Centre for Automotive Management The University of Buckingham Business School www.buckingham.ac.uk/cam

A REPORT FOR BCA

The Used Car Market Report 2013

The Used Car Market – a report by BCA

3

Foreword

We are delighted to bring you

this 23rd edition of the BCA

Used Car Market Report.

This year's report looks at how

nearly five years of financial

anxiety has affected motorists'

decisions on buying a used car

and the impact of prolonged,

low new car market volumes on

the used car industry.

Our editor, Professor Peter N C Cooke, the Professor of Automotive

Management, the Centre for Automotive Management at The University of

Buckingham is a well-known commentator on the motor industry.

Professor Cooke spent over 20 years in the motor industry and has taught,

researched and written about the industry at business schools for a similar

period. He has undertaken much work on the fleet, used car and LCV sectors

and edited the BCA Used Car Market Report for several years.

The Buckingham Automotive team has sought to retain the key aspects of

this highly-regarded report, and has undertaken new analysis on the changing

shape of the used car market.

Given early signs of economic recovery, the BCA Used Car Market Report

2013 also looks at the prospects for sustained growth in the UK's automotive

industries.

Jon Olsen

CEO

BCA Vehicle Remarketing

Contents

Foreword 3

Introduction 6

Overview

New and used car market volumes rise The new car market The used car market Consumer perspective

7

789

10

UK Market Review

Used car volumes top seven million Used:new car ratios Used car market segments Dealers’ used car sales Private-to-private used car sales 6-8 year-old cars outpace the market UK car market value reaches new high Dealer/private sector used car market value Used car selling prices Used car prices at auction Average age of cars reaches a 30-year high Three-quarters of cars reach 12 years The ‘parc turn’ indicator Car parc ageing effect Encouraging signs on the horizon

12

121212131516161718191920212223

Consumer Perspective

Part One – What Used Car to Buy? What used car to consider buying? Influences on search for car 'Crunch factors' Part Two – Where to Buy From? Which used car retailer to buy from? Buying from franchised and non-franchised dealers Three-quarters of motorists buy a used car Seven out 10 households own a car Hatchbacks most popular Buying a used car rather than new? Sales of used diesels rise Used car satisfaction remains very high Part Three – Car Owners' Options and Buying Intentions Buying a car in the next year? What type of car to buy next? Where to buy the next car? Low or 0% interest next time? Sell your car 'for cash' next time? Reasons for selling 'for cash' Part Four – Economic Recovery, Running Costs, and Keeping in Touch What car to buy during economic uncertainty? Steps already taken to cut car running costs

24

2525262628282929303132323335353536363739404041

Contents

Regional Review

'Personal experience' tops the list in nine regions When to buy the next car? Where to buy the next car? What car to buy next? Satisfied used car owners Major influences on car search Selling your car 'for cash' Buying a new car instead of used

42

4243444445464647

European Overview

New car market volumes Western European markets New member states Used car volumes Car parc Parc turn percentage Used:new volume ratios Used car sales per 1,000 population United Kingdom, Germany. Italy France, Spain

49

4950515253545656575859

Macroeconomics Behind the Used Car Industry

UK economic recovery versus other countries UK economic recovery Changes in GDP CPI and RPI Implications of macroeconomic issues? A new economic policy? What does the future hold?

61

61626364666666

Unique New and Used Car Market – Purple Patch or Grey Mist?

The European new car market The UK new car market UK car market developments New and used car market relationships Used car volume and value The professional used car retailer Future profitability?

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67687071727273

Used LCVs – Where Would We be Without Them?

Economic growth and demand for used LCVs Used LCV supply Role of the LCV dealer Developing used LCV sourcing Used LCV market profile Short and medium-term supply resolution It could become critical

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BCA – Partnering with Buyers and Sellers to Power the Market

BCA Network

Statistical Data

Research

The Used Car Market – a report by BCA

6

Introduction

The BCA Used Car Market Report 2013 aims to provide the same valuable insight

into the latest developments in the UK used car market that each of our previous

reports have done.

The UK Market Review is based on statistical information from national sources. This

is updated and compared with previous years’ data to provide an authoritative view

on volume and value trends in the used car market.

The Consumer Perspective section of the report is based on a BMRB International

survey of UK car owners. This comprises a review of the key issues that influence

used car buyers when deciding which car to buy, where to buy from and what car

owners expect when buying and owning a used car.

This year, respondents were asked if they had taken any steps to reduce their car

running costs and, if the economic recovery remains slow, what type of car they

might consider buying next. They were also asked if they might consider selling their

car directly 'for cash' and whether the offer of 'low or 0% new car finance' might

persuade them to buy a new car instead of a used one when they change their car.

The European section of the Used Car Market Report contains updated trend

information on Europe’s new and used car markets.

Other sections include 'A Unique New and Used Car Market' looking at the UK's

niche market position in Europe, highlighting some caveats as the economy moves

forward – and the 'United Kingdom Economic Situation' considering the impact of the

economy on the country's new and used markets.

The report also looks briefly at the used LCV market and the key issues driving this

important automotive sector.

BCA is pleased to provide its Used Car Market Report 2013 to all those closely

associated with the UK automotive industry.

The Used Car Market – a report by BCA 7

Overview

New and used car market volumes rise

Higher new and used car volumes in 2012 saw combined car sales exceed the nine

million mark for the first time in five years.

Market volumes new vs. used; 2003 – 2012

2.02.02.12.42.32.42.62.6

1.9 2.0

6.66.36.7

7.17.47.3

6.87.2

6.77.1

9.59.49.8 9.79.7

8.88.3 8.6 8.6

9.1

1

2

3

4

5

6

7

8

9

10

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Mill

ions

New Used Total

Source: SMMT/BMRB

New car sales recovered to 2.04 million units last year, but remained well behind the

volumes achieved prior to the start of recession.

Weak sales elsewhere in Europe saw the UK's share of Western Europe's new car

market climb 2.2% to 17.4% in 2012, reclaiming second place in the European new

car sales league – 146,000 units ahead of third-placed France. Much stronger private

sector sales saw UK new car volumes rise 5.3% and 103,000 units to 2.04 million in

2012.

UK used car volumes fell during the height of recession to 6.3 million in 2009, edging

up to 6.7 million units in 2011 before reaching 7.1 million in 2012.

Overview


The new car market

The new car market value climbed significantly to £32.3 billion in 2012 close to pre-

recession levels as selling prices rose and new car sales staged a modest recovery.

Following several years comfortably over £30 billion, the UK new car market value

dropped to £28.1 billion in 2008, making little headway over the next three years as

new car volumes settled below two million units – before rising to £32.3 billion in

2012.

New car market volume and value; 2003 – 2012

2.42.4

2.62.6

2.3

2.1

1.9

1.7

2.01.9

32.3

29.028.728.028.1

33.032.432.232.4

33.5

1.0

1.2

1.4

1.6

1.8

2.0

2.2

2.4

2.6

2.8

3.0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Mill

ions

20

25

30

35

£ b

illion

Volume Value Scrappage deals

0.30.1

Source: SMMT//BMRB

UK new car registrations, which settled around 2.5 million units between 2001 and

2005, fell steeply during recession and economic uncertainty to a 17-year low of 1.94

million units in 2011.

A rise of 12.9% and 106,300 units in private sector sales helped push overall new car

volumes up 5.3% to 2.04 million in 2012. New cars sales to the 25-plus fleet sector

were stable at 1.03 million units last year, falling to 50.2% of the market from 52.5%

in 2011.

As the country's economy begins to show signs of recovery, new car volumes

continue to grow in 2013 – up 10% to 1.163 million units for the first six months of

the year, fuelled by a 17.1% year-on-year rise in private sector sales.

Year-to-date new car sales are running just 9% below 2007's pre-recession level,

and are expected to remain relatively strong in the second half of 2013. The SMMT's

latest forecasts show the new car market growing by 8.4% to 2.216 million units for

the full year 2013 and by a further 1% to 2.239 million in 2014.

Overview


The used car market

UK used car sales hit a 10-year high of 7.4 million in 2006, dropping over the next

three years to 6.3 million units, as recession and financial pressures eroded

consumer confidence. Since then, used car volumes have recovered much of the lost

ground reaching 7.1 million units in 2012.

Used car market value reached a new record level of £38.1 billion in 2012, having

risen steadily from 2008's figure of £32.4 billion.

Used car market volume and value; 2003 – 2013

7.1

6.66.7

7.1

7.47.3

6.8

7.2

6.7

6.332.0

30.0 32.3

33.933.3

32.4

34.2 35.035.7

38.1

4

5

6

7

8

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Mill

ions

20

25

30

35

40

£ b

illion

Volume Value

Source: BMRB

Strong sales of 6-8 year-old cars and recovery in the 0-2 year and 3-5 year sectors

pushed used car volumes up by 430,000 to 7.1 million units in 2012.

Dealers' and the private sector's used car sales both grew in 2012 – the former by

8.9% to 4.07 million and the latter by 3.7% to 2.73 million units.

Sales of 0-2 year-old cars rose by 18.6% (120,000 units) to 762,000 in 2012,

their share of the used car market up to 10.7% from 9.6% the previous year.

Sales of cars in the 3-5 year age band increased last year, by 6.1% (104,000

units) to 1.83 million, the segment's market share stable at 25.7%.

Sales of 6-8 year-old cars rose for the fifth year running in 2012, by 11.2% to

1.99 million units, pushing this sector's market share up 1.4% to an all-time high

of 28%.

9 years-plus used car volumes were flat at 2.53 million units, their share of the

market dropping 2.2% to 35.2%.

Overview


Consumer perspective

Twenty-six per cent of car owners in this year's survey had bought a new or used car

during the past two years compared with 24% last year – three-quarters of them

opting to buy a used rather than a new vehicle. The same percentage of men and

women had bought a car over the past 24 months, with 75% of men and 77% of

women buying a used car instead of a new one.

'Personal experience of make and model' was the strongest influence when

considering what used car to buy, mentioned by 29% of respondents in this

year's survey ahead of 'view of friends and family' (26%). Taking a 'test drive'

rose from 15% of responses to 21% year on year – while 'Internet

shopping/consumer sites' (14%) and 'used car showrooms/sites' (13%) play an

increasingly key role when buyers decide which used car to look for next.

Car owners were asked for the first time what issues have the biggest influence

on the way they conduct their search for a suitable used car. Nearly two-thirds

(64%) of car owners cited 'price range' as the main driving force, while two out of

five motorists said 'brand' and 'model range' were foremost in their mind during

the search.

'Price' (41%), and 'low mileage' and 'make and model', cited by 30% of car

owners, remain top of car buyers' shopping list when deciding which particular

used car to buy.

The 'right car at the right price' from a 'reliable and trustworthy dealer', climbed

car buyers' shopping list in this year's survey when deciding which used car

retailer to deal with – the former up 8% to 37% and the latter 5% higher at 19%

of respondents. Three out of 10 consumers expect 'a good deal', while a fifth of

car buyers place considerable emphasis on being able to 'trade in' their car.

Hatchbacks increased in popularity in this year's survey, 4% more car owners

(51%) choosing this option at the expense of saloons which saw their market

share drop by 5% to 17%. MPVs' share of the used car market slipped to 7%

from 10% a year earlier.

Diesel-engined cars’ share of the used car market rose 3% to 36% in this year's

survey to a level last seen in 2010, as growing numbers of diesels entered the

used car supply chain.

Used car owners' satisfaction with their used car hit 95% for the second year

running – those 'very satisfied' reaching an all-time high of 71%, with a further

24% of motorists saying they were 'quite satisfied' with their car.

This year's research saw a rise in the number of car owners who said they will

'certainly' or 'quite likely' buy a car in the next 12 months – up 4% to 14% year

on year. The number of motorists, who think there is a '50:50 chance' they will

be in the market for a car, rose one point to 10%.

Overview


More than three-quarters (78%) of motorists intend to buy a used car when they

next change, 37% of used car buyers favouring a diesel compared with 30% in

last year's survey.

The number of respondents saying they intended to deal with a 'franchised

dealer' slipped two points to 48% this year, 57% of them planning to trade in

their existing car. A third of potential used car buyers plan to by from 'a family

member or a friend', 16% from a 'non-franchised used car retailer' and 9% from

an 'Internet trader' – 2% more than last year.

Low or 0% finance would tempt 17% of potential car buyers to 'certainly'

consider a new car instead of used one next time they change. A further 23%

said it was 'quite likely' they would give buying a new car some thought.

A half of men and two out of five women said 'Yes' – when asked 'would you

consider selling your car directly for cash?' While this 'opportunity' seems to

appeal more to 35-45 year-old and wealthier car owners, it is of much less

interest to older drivers.

Having lived through the longest, deepest economic downturn on record, only

one in 10 respondents said they would 'buy the same type car again', a 50%

drop over the past three years.

Four out of five respondents said they had already taken steps to cut their car

running costs – 'keeping tyres at the right pressure', 'driving more slowly',

'avoiding heavy braking', 'accelerating less quickly' and having 'a more fuel-

efficient car' were at the forefront of measures adopted.


UK Market Review

Used car volumes top seven million

Lower inflation, lower fuel

costs, rising employment

and a more stable economy

helped restore car buyers'

confidence somewhat in

2012.

This helped push new car

sales up 5.3% to 2.04

million units last year;

private sector sales rising

12.9% to 929,000 units.

An even greater rise was

recorded in used car sales

which climbed 6.4% to 7.1 million units in 2012.

Used:new car ratios

The ratio of used car sales to new car sales

increased for the third year running to 3.5:1 in

2012, as the rise of 6.4% in used car volumes to

7.1 million units outpaced the growth in new car

sales.

Used car market segments

Strong sales of 6-8 year-old

cars and a recovery in the

0-2 year and 3-5 year age

groups helped overall used

car volumes grow by

430,000 units to 7.1 million

in 2012.

Dealers' and the private

sector's used car sales both

rose last year – the former

by 8.9% to 4.07 million and

the latter 3.7% higher at

2.73 million units.

Car volume trends; 2008 – 2012

2.1 2.0 2.0 2.0 2.0

6.76.3

6.6 6.77.1

0

1

2

3

4

5

6

7

8

2008 2009 2010 2011 2012

Mill

ions

New Used

Source: SMMT/BMRB

Used:new car ratios; 2008 – 2012

2008 3.2:1

2009 3.2:1

2010 3.3:1

2011 3.4:1

2012 3.5:1

SMMT/BMRB

Volume of used car sales by source; 2008 – 2012

0.4

2.7

3.6

6.7

0.6

2.2

3.5

6.3

0.5

2.4

3.7

6.6

0.3

2.6

3.7

6.7

0.3

2.7

4.1

7.1

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Mill

ions

2008 2009 2010 2011 2012

Other/Auction Private Dealers Total

Source: BMRB

Used car sales climbed to 7.1 million in 2012

UK Market Review


Looking at sales in the key age groups shows the used car market continued to

evolve in 2012;

Sales of 0-2 year-old cars rose by 120,000 units (18.6%) to 762,000 in 2012.

This segment's share of the used car market rose to 10.7% from 9.6% the

previous year.

Sales of cars in the 3-5 year age band increased last year, by 104,000 to 1.83

million units, the group's market share stable at 25.7%.

Used car market volumes by age of car; 2008 – 2012

762642

978

762710

18301725

184018841882

15831481

1669

1993

1793

2208 2174

2352

25342529

500

1000

1500

2000

2500

3000

2008 2009 2010 2011 2012

Tho

usan

ds

0-2 3-5 6-8 9+ yrs

Source: BMRB

Sales of 6-8 year-old cars rose for the fifth year running in 2012, by 201,000

units (11.2%) to 1.99 million, pushing this sector's market share up 1.4% to an

all-time high of 28%.

9 years-plus used car volumes were flat at 2.53 million units, their share of the

market dropping 2.2% to 35.2%.

Dealers’ used car sales

Stronger sales of cars up to 8 years old saw used car retailers' volumes outpace the

market, rising 8.9% (333,000 units) to 4.07 million, their share of the used car market

up 1.3 points to a new high of 57.2% (see overleaf).

Retailers' sales of 0-2 year-old cars increased by 76,000 units (14.2%) to

611,000.

Used car retailers' volumes outpaced the market in 2012

UK Market Review


Dealers’ used car volumes and market share; 2003 – 2012

4.07

3.743.67

3.533.61

3.97

3.66

3.874.01

3.87

53.6 53.6 53.3

54.8

56.3

54.3

56.0 55.8 55.9

57.2

2.0

2.5

3.0

3.5

4.0

4.5

5.0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

% M

arket share

40

45

50

55

60

Mill

ions

Millions Market share

Source: BMRB

Dealers' volumes in the 3-5 year age group rose by 11% (145,000 units) to 1.47

million, their market share up 3.5 points to 80.3%, reportedly retailing a higher

number of trade-ins resulting from last year's much higher private sector new car

sales.

Used car retailers' sales of 6-8 year-old cars continued to grow in 2012, up

125,000 units (11.1%) to 1.25 million, with their share of the market remaining at

62.7%. Dealers continue to focus more on older used cars to mitigate the

uncertain supply of younger vehicles.

Dealers’ used car volume by age of car; 2008 – 2012

543

663

856

535611

14621358

1302 1325

1470

1126

1250

10631034

780755 741759

473513

0

200

400

600

800

1000

1200

1400

1600

1800

2008 2009 2010 2011 2012

Tho

usan

ds

0-2 3-5 6-8 9+yrs

Source: BMRB

Dealers continue to focus more on older used cars

UK Market Review


Dealers' volumes in the 9 years-plus used car segment dipped 1.4% to 741,000

last year, their market share slipping from 29.9% to 29.2% year on year.

Dealers strengthened their

grip on the 0-8 year-old

used car sector last year,

their sales rising 346,000 to

3.3 million units, accounting

for 81.8% of their used car

business a rise of 2% on the

previous year.

Used car retailers' success

in older segments has seen

their used car volumes in

the 6-8 year age group rise

285,000 units to 1.25 million

over the past five years –

accounting for 31% of their

business in 2012 compared with 24% in 2007.

Private-to-private used car sales

While the private sectors' used car sales rose 3.7% (98,000 units) to 2.73 million in

2012, they failed to keep pace with market growth, their share of the market dropping

one point year on year to 38.3%.

Private-to-private used car volumes by age of car; 2008 – 2012

1016065 47 93

281281278317

326

708

348442

573513

1774 17751644

15061594

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2008 2009 2010 2011 2012

Tho

usan

ds

0-2 3-5 6-8 9+yrs

Source: BMRB

Volume share of dealers’ used car sales, by age of car 2012

6-8 years31%

3-5 years36%

0-2 years15%

9+years18%

Source: BMRB

Retailers' sales in the 6-8 year age group rose to 1.25 million units over the past five years

UK Market Review


Private-to-private sales of 0-2 year-old cars climbed 40,000 units to 101,000 in

2012, accounting for 13.2% of sales in this segment.

The private sector's volumes in the 3-5 year age group were flat at 281,000

units, its share of the market dropping one point to 15.3% last year.

Private-to-private sales of 6-8 year old cars rose 11.7% (60,000 units) to 573,000

in 2012, their share of the this market sector stable at 28.7%.

Private sector sales and share of the of the 9 years-plus age sector were 1.78

million units and 70% respectively in 2012.

6-8 year-old cars outpace the market

A faster parc churn, stimulated by trade-ins from the sale of 100,000 additional

private sector new cars, helped push sales of cars in the 3-5 year age band up 6%

and 104,000 units to 1.83 million last year.

However, as the number of units in 3-5 year old car parc segment dropped to a 15-

year low of 5.8 million units, 200,000 more used car buyers bought a car in the 6-8

year age group in 2012 – 1.99 million in total.

UK car market value reaches new high

The overall value of the UK's new

and used car markets climbed £5.7

billion to a record £70.4 billion in

2012 – some £4 billion higher than

2007's pre-recession figure of

£66.3 billion.

The value of the new car market

rose £3.3 billion in 20`12 reflecting

103,000 extra new car sales and a

modest rise in new car selling

prices.

A 430,000 rise in used car sales last year offset flat selling prices to drive the used

car market value up £2.4 billion to an all-time high of £38.1 billion – £5.8 billion higher

than the new car market value.

New and used car market values; 2008 – 2012

£ billions 2008 2009 2010 2011 2012

New 28.1 28.0 28.7 29.0 32.3

Used 32.4 34.2 35.0 35.7 38.1

Total 60.5 62.2 63.7 64.7 70.4

Used % * 53.6 55.0 54.9 55.2 54.1

* as % of total market value

Source: BMRB

Value of UK's new and used car markets climbed to a record £70.4 billion

UK Market Review


Dealer/private sector used car market value

Dealers' used car market value increased by £1.5 billion to £28.3 billion in 2012; as

volumes climbed, average sales values fell and dealers sold greater numbers of

lower-value, older used cars. The private sector's used car market value also went up

last year, by £0.5 billion to £7.9 billion, reflecting a moderate rise in both used car

volumes and average selling prices.

Value of used car sales by source; 2008 – 2012

1.43.4

1.5 1.91.7

5.67.0 6.8 7.4 7.9

24.025.2

26.5 26.828.3

32.434.2 35.0 35.7

38.1

0

5

10

15

20

25

30

35

40

2008 2009 2010 2011 2012

£ B

illio

ns

Other/Auction Private Dealers Total

Source: BMRB

Share of used car market value; 2003 – 2012

75.376.374.2 75.5 77.074.475.175.6

73.774.0

19.5 18.2 17.8 17.6 17.721.6

16.419.3 20.7 20.7

0

10

20

30

40

50

60

70

80

90

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

%

Franchised/non-franchised Private to private

Source: BMRB

UK Market Review


Franchised and non-franchised used car retailers retained their traditional three-

quarters share (74.4%) of used car market value in 2012; while the private sector's

share was flat at 20.7% as a slightly higher number of used car owners bought from

auction or other sources last year.

Used car selling prices

Overall average used car selling prices edged up to £5,352 in 2012 from £5,336 a

year earlier. Dealers’ average used car selling prices fell for the second year, from

£7,169 in 2011 to £6,972 last year as their used car sales mix aged – while the

private sector saw its average used car price rise from £2,815 to £2,896 year on

year.

The following chart shows the relationship between dealers' used car selling prices

and the Retail Price Index (RPI) over the past 25 years. While the two indices have

followed a similar trend for much of this period, dealers' selling prices tend to be

lower than RPI for some considerable time following recession and a period of

economic uncertainty.

Average dealers' used car selling prices; 1998 - 2012

230.9

164.8162.1

223.9

199.2

147.3

142.8139.5

134.8131.6129.6

124.9

118.0

107.8

152.4154.7

159.3

174.6169.6

179.6185.3

193.3

203.9

213.7

198.0

203.6

186.0

148.4

138.6

117.4 103.7

120.9

120.6

121.3

132.8

101.4

162.4158.1

164.5163.0166.7

174.1177.5

178.3178.0183.6

202.9

207.2

100

110

120

130

140

150

160

170

180

190

200

210

220

230

240

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

RPI Dealers' used car selling price

Source: ONS/BCA Used Car Market Report

The current gap between selling prices and RPI is wider than the last recession in

1991. This is symptomatic of the recent recession being much deeper than its

immediate three predecessors – and the exceedingly slow pace of recovery which

continues to restrict disposable earnings and erode consumer confidence– see BCA

Broad View Report April 2013.

While the Retail Price Index is expected to slow over the next two years, it will be

some time before enough first-time used cars reach the market to trigger a significant

recovery in dealers' average used car selling prices.

Franchised and non-franchised retailers retained three-quarters share of market value

UK Market Review


Used car prices at auction

Average used car prices at auction fell steeply during recession to £4,836 at the end

of 2008, making a strong recovery in 2009 before reaching £7,361 in December 2012

– a rise of £2,525 over the four year period.

Average used car prices at auction; 2008 – 2013

£7,361

£6,451

£5,905

£6,188

£4,836

£7,000

£5,880

£4,000

£4,500

£5,000

£5,500

£6,000

£6,500

£7,000

£7,500

Jan-08

Apl July Oct Jan-09

Apl July Oct Jan10

Apl July Oct Jan-11

Apl July Oct Jan-12

Apl July Oct Jan-13

Apl

Source: BCA

Apart from a 'traditional' dip around Easter, auction prices remain remarkably

consistent in 2013, suggesting supply and demand are relatively well balanced – with

fleet and lease values rising to £8,860 in June this year, up 10.1% on the same point

in 2012. Dealers' part-exchange values climbed to £3,692 in June 2013 registering a

year-on-year rise of 28.4% on the same month the previous year.

While average age and mileage of fleet and lease cars have dropped somewhat, there

is still some concern regarding quality of stock reaching the marketplace – with

buyers' interest focusing on 'retail ready' units that continue to outstrip price guide

expectations and boost average sale values.

Average age of cars reaches a 30 year high

The number of cars in the UK car parc has been flat around 30 million for the past

eight years and will rise very slowly until new car sales substantially exceed the two

million mark – see overleaf.

The average age of cars on the country's roads fell to 6.69 years in 2004, before

reaching a 30-year high of 7.59 years in 2012 – reflecting prolonged, low new car

volumes. The SMMT's current new car market forecasts mean the car parc will

continue to age until much higher new car volumes enter the parc for several years to

offset the impact of the record high new car volumes of the early 2000s hitting the

10-years plus mark.

Fleet and lease values up 10.1% on the same point in 2012

UK Market Review


UK car parc – average age of car; 2000 – 2015

30.4 30.5 30.7 30.9 31.130.327.2 29.429.028.527.8 29.8 29.9 30.2 30.3 30.1

7.817.69

7.257.06

6.736.706.69

6.887.01

6.78

7.11

6.796.93

7.557.597.44

10.0

15.0

20.0

25.0

30.0

35.0

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Mill

ions

5.00

5.50

6.00

6.50

7.00

7.50

8.00

Averag

e age years

Millions Average age

Source: SMMT

Three-quarters of cars reach 12 years

Three-quarters

(76.3%) of cars

now make their

twelfth birthday

and more than half

(51.6%) are

reaching the 14-

year mark –

testimony to better

build quality and

owners perhaps

keeping their cars

a little longer

during financial

hard times.

Around 350,000

cars were

scrapped during their 15th year in 2012, leaving two million cars aged 15 years or

over in the parc, accounting for 7% of the cars on the country's roads.

UK car parc survival rate; 2012 vs. 2003

30

40

50

60

70

80

90

100

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Years

Sur

viva

l rat

e %

2012 2003

Source: SMMT

Three-quarters of cars now make their twelfth birthday

UK Market Review


The ‘parc turn’ indicator

The ‘parc turn’

indicator, which

expresses annual

new and used car

volumes as a

percentage of the

UK car parc, is a

valuable way of

monitoring car

sales trends.

While the overall

parc turn rose 1.6

points to a five-

year high of 29.9%

in 2012, it was 4%

below the figure

recorded 10 years earlier. 2012's ratio reflects higher new and used car volumes of

9.1 million versus a flat car parc of 30.5 million units.

The new car parc turn went up to 6.6% in 2012 from 6.3% the previous year,

reflecting a rise of 5.3% and 103,000 units in new car volumes.

The used car parc

also recorded a

marked rise last

year, up 1.4 points

to 23.4% thanks to

a 6.4% (430,000)

lift in used car

volumes.

Franchised and

non-franchised

retailers' used car

parc turn climbed

to 13.5% in 2012

from 12.2% the

previous year, while

the private-to-private sector's share edged up 0.3 points to 8.9%.

Car parc turn; 2003 – 2012

22.1 20.9 21.8 22.023.423.5

24.824.823.1

24.5

6.66.36.66.66.97.97.78.08.89.0

29.928.328.427.6

29.0

33.832.0 32.5 31.532.5

0

5

10

15

20

25

30

35

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

%

Used % parc New % parc Total

Source: SMMT/BMRB

Dealer vs. private sector used car parc turn; 2003 – 2012

11.911.6

12.1 12.2

13.513.213.713.5

12.513.1

8.98.6

8.1

7.3

8.98.9

9.710.19.6

10.3

5.0

7.5

10.0

12.5

15.0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

%

Dealer % of parc Private % of parc

Source: SMMT/BMRB

The used car parc recorded a marked rise last year – to 23.4%

UK Market Review


Car parc ageing effect

The BCA Used Car

Market Report has

been discussing

the impact of the

UK's ageing car

parc for several

years. Of course,

at the outset, it

could not be

foreseen that new

car volumes would

remain so low for

so long – taking

much longer to

recover to anything

like pre-recession levels than in previous economic crises.

Unsurprisingly, the impact has been quite severe; the average age of cars on the

UK's roads reached 7.59 years at the end of 2012, and is destined to get worryingly

close to eight years before the upward trend is reversed – with substantial

implications for the used car market.

This year's report shows that franchised and non-franchised used car dealers rely

heavily on the supply of cars in the 3-5 and 6-8 year age groups which, together,

accounted for two-thirds of their used car volumes in 2012.

UK car parc 3-5 and 6-8 year segments; 2000 – 2015

6.3 6.46.6

6.9

7.37.6 7.6

7.37.0

6.86.5

6.2

5.8 5.8 5.96.1

5.35.5

5.86.1

6.3 6.46.7

7.17.3 7.3

7.16.8 6.7 6.6

6.25.9

0

1

2

3

4

5

6

7

8

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Mill

ions

of c

ars

3-5 year parc 6-8 year parc

Source: SMMT/Buckingham

UK new car sales; 2000 – 2015

0.28

0.11

2.22

2.04

2.24

2.582.56

2.46 2.44

2.57

2.40

2.13

1.71 1.92

1.94

2.282.22

2.34

1.0

1.2

1.4

1.6

1.8

2.0

2.2

2.4

2.6

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Mill

ions

of

cars

New car sales Scrappage deals New car sales forecast

2.031.99


The average age of cars on the UK's roads reached 7.59 years at the end of 2012

UK Market Review


2.6 million fewer cars

The chart on the previous page shows the parc for 3-5 year-old cars dropped to 5.8

million units at the end of 2012, some 1.5 million units lower that 2007's pre-

recession figure – and, based on the latest SMMT forecasts, is likely to remain

relatively flat for the next three years or so.

The parc of 6-8 year-old cars reached an all-time high of 7.3 million units in

2008/2009, falling steeply thereafter, as cars from the record high sales of the early

2000s passed through this age group – continuing to drop to around 5.9 million units

by 2015. In other words, there will be 2.6 million fewer cars between three and eight

years old in 'used vehicle stock' in 2015 than the start of the recession.

A major concern for used car dealers is the further decline of three-quarters of a

million cars in the 6-8 year parc over the next three years – a sector dealers have

come to rely on more heavily as supply of good quality, younger vehicles became less

reliable.

Encouraging signs on the horizon

While it is impossible to miraculously conjure up more cars in the country's 3-8 year

car parc (used car stock), achieving a significantly higher 'stock turn' will help protect

dealers' used car volumes.

An encouraging development on this front is the much stronger private sector new

car sales over the past 18 months – the vast majority of which will drive a part-

exchange vehicle into the used car market and spur further used car sales down the

chain.

Private new car sales rose by 106,000 units year on year in 2012, and are 81,000

units higher than the previous year for the first six months of 2013 – the badly-

needed impetus the used car market needs following five years of depressed new car

volumes.

Much stronger private sector new car sales over the past 18 months


The Consumer Perspective

The Consumer Perspective section of the BCA Used Car Market Report looks at the

pattern of car ownership in the United Kingdom and the key issues that drive

motorists' decision on what used car to buy and where to buy from.

BCA commissioned BMRB International to carry out face-to-face interviews with

4,000 car owners in the UK to identify their priorities and experiences in buying and

owning a used car – what convinced them to buy their latest used car, what

influenced their choice of seller, what type of car they might buy next, who they might

buy from and when.

This year, car owners were also asked if they would consider selling their car directly

'for cash' and whether the availability of low or 0% interest new car finance might

persuade them to buy a new car instead of a used one when they change their

vehicle. The consumer research also looked at what steps motorists had taken to

substantially reduce their car running costs and, if economic recovery remains slow,

what car they might look for when they replace their vehicle.

Fieldwork for the BMRB consumer research took place during April 2013.

The Consumer Experience section is split into four parts;

What Used Car to Buy? – looks at the sources of information that affect used car

buyers’ decision on what car to consider buying, what factors have the strongest

influence on the way they conduct their search for a suitable vehicle – and the critical

points when deciding which specific used car to buy.

What Car to Buy and Where From? – this part of the report considers what factors

concern car owners when choosing which dealer to buy their used car from, and

what influences them most when dealing with a franchised or non-franchised used

car retailer. It also looks at the pattern of car ownership across the country, why

motorists buy a used instead of a new car, the type of used car they bought – and

how satisfied they are with their vehicle.

Car Owners' Intentions and Options – focuses on when motorists might replace

their car next, what type of car they plan to buy and where they might buy from. This

part of the report also looks at whether low or 0% interest new car finance might

persuade car buyers to opt for a new car instead a used car next time – and in what

circumstances car owners might sell their car 'for cash'.

Economic Uncertainty and Car Running Costs – examines what type of car

motorists might think about buying next in the face of ongoing economic uncertainty,

and what steps car owners have taken already to reduce their motoring costs.



Part One – What Used Car to Buy?

What used car to consider buying?

'Personal experience of make and model' was the strongest influence when

considering what used car to buy, mentioned by 29% of respondents in this year's

survey ahead of 'view of friends and family' (26%).

Influences on type of used car considered

2

3

5

5

7

8

8

10

10

13

14

21

29

26

Facebook/Twitter

Car Manf Advs

Dealer advice

Car TV shows

Dealer websites

Motoring magazines

Cars on street

Consumer reports

Classified used car websites

Used car showrooms/sites

Internet shopping/consumer sites

Testdrive

Views family friends

Personal experience make/model %

Source: BMRB

Taking a 'test drive' rose from 15% of responses to 21% year on year – while

'Internet shopping/consumer sites' (14%), 'used car showrooms/sites' (13%) and

'classified used car websites' (10%), all play a key role when used car buyers decide

which used car to look for next.

As in previous surveys, used car buyers are less likely to pay too much attention to

'car TV shows, 'dealer advice' or 'car manufacturers' adverts' when thinking about

what car to search for, while 'social media' (Facebook/Twitter) is hardly in the frame

during this first stage of the buying process.

'View of friends and family' (28%) tops the list for women, when deciding what car to

consider, whereas men are more likely to take heed of 'personal experience of make

or model' (31%), a 'test drive' (24%) or 'motoring magazines' (10%) when thinking

about what car they might buy.

'Personal experience of make or model' far outstrips all other considerations for 45-

54 year-old and wealthier car buyers, and owners of used cars costing between

£10,000 and £15,000. Wealthier car owners are also more likely than others to take

note of 'consumer reports/programmes', 'motoring magazines' and 'car TV shows',

when taking this first step in replacing their vehicle.

Taking a 'test drive' rose from 15% to 21% of responses



Influence on search for car

Car owners were asked for the first time what issues have the biggest influence on

the way they actually approach their search for a suitable used car.

Nearly two-thirds (64%) of car owners cited 'price range' as the driving force in this

process, while two out of five motorists said 'brand' and 'model range' were foremost

in their mind during the search.

Other factors, that

influenced car owners

when searching for a

car, were 'type of

used car seller'

(24%), 'variant and

specification' (17%),

and how far they were

prepared to travel to

view a car

('location/distance') at

11%.

There is little

difference between

men and women and

across age and social groups on which factors influence their car search most – 'type

of used car seller' is important to 65 years-plus car buyers, while 'price range'

outstrips all other considerations for low-income motorists.

On the purchase price front, 'price range' and 'brand' are the top issues for owners

of cars over the £15,000 mark, while 'type of seller' is very much on the radar of

buyers of cars costing £20,000 plus.

'Crunch factors'

'Price' (41%), and 'low mileage' and 'make and model' cited by 30% of car owners,

remain top of car buyers' shopping lists when deciding which particular used car to

buy, while 'engine size' stepped up two points to 20% of respondents this year – see

overleaf.

Men and women think much alike when deciding which used car to buy, although

'engine size' has more influence with women (23%) than men (17%), who take more

notice of 'specification' (12%) than their female counterparts (6%).

While 'price' surpasses all other considerations for half of 17-34 year-olds and low-

income car owners, it is of very little concern for older and wealthier motorists – who

are more influenced by 'make and model of vehicle' than other car buyers.

Strongest influences on carrying out search for car

11

17

24

37

39

64

Location/distance

Variant/specification

Type of used carseller

Model Range

Brand

Price range %

Source: BMRB

Nearly two-thirds of car owners cited 'price range' as the driving force



Critical factors in choosing a particular used car

41

30 30

20

1715

14

119 9 8

3

0

5

10

15

20

25

30

35

40

45%

Price

Low m

ileag

e

Make/

mod

el

Engin

e siz

e

Body t

ype

Age

Fuel

optio

n

Insura

nce

Specif

icatio

n

Safety

Colour

Enviro

nment

al

Source: BMRB

Unsurprisingly, 'price' is a major issue for car owners who bought a car for less than

£3,000. It also concerns half of motorists who paid between £15,000 and £20,000 for

a used car last time, who are equally swayed by 'make and model'.



Part Two – Where to Buy From?

Which used car dealer to buy from?

When deciding which used car retailer to deal with, the 'right car at the right price'

from a 'reliable and trustworthy dealer', climbed car buyers' shopping list in this

year's survey – the former up 8% to 37% and the latter 5% higher at 19% of

respondents. Three out of 10 consumers expect 'a good deal', while a fifth of car

buyers place considerable emphasis on being able to 'trade in' their existing car.

Factors influencing choice of dealer

3

3

4

4

6

7

9

10

15

15

16

17

19

22

30

37

Read about dealer

Showroom facilities

Low finance

Quick delivery

Recommended

Easy negotiation

Aftersales

Wide choice

Friendly,helpful

Warranty

Bought before

Local

Reliable, trustworthy

Trade-in

Good deal

Right car, price %

Source: BMRB

'Dealing locally' (17%) with a dealer they have 'bought from before (16%) and 'friendly

and helpful staff' (15%) also rate highly with used car buyers.

More men favour 'getting a good deal' (37%) than women (23%), whereas a quarter

of women rely on being able to 'trade in' their car compared with just a fifth of men.

Half of younger buyers value negotiating a 'good deal' on the car and buying from a

'reliable and trustworthy dealer', two-thirds of them preferring to 'deal locally'.

A half of owners of cars costing more than £10,000 expect their selling dealer to have

'the right car at the best possible price', while buyers of cars over the £20,000 mark

expect much more. Many of them look for a strong blend of 'price', a 'good deal',

'ability to trade in' and 'deal locally' from a 'reliable and trustworthy dealer' with

'friendly, reliable and helpful staff'.

Three out of 10 consumers expect a 'good deal'



Buying from franchised and non-franchised dealers

Used car buyers' expectations of franchised dealers selling the same make of car are

well established. Two out of five motorists want 'the right car at the right price'

followed by 'a good deal' (29%), the ability to 'trade in their car' (27%) and to do

business with a 'reliable and trustworthy dealer' (25%). A fifth of car owners also like

to deal with a 'local retailer', one they 'have bought from before', and value

negotiating with 'friendly, reliable and professional staff'.

Factors influencing choice of dealer

12

7

6

4

2

33

28

18

13

11

9

10

6

4

2

1

4

3

2

22

20

20

13

13

23

25

39

29

27

12

Right car right price

Got a good deal

Trade-in

Reliable/trustworthy

Bought before

Local

Friendly, helpful

Warranty

Range of choice

Aftersales

Lack of pressure

Quick delivery

Recommendation

Showroom facilities

Low finance

%

Franchised dealer same make

Used car retailer

Source: BMRB

A third of car buyers who bought from a non-franchised used car retailer sought 'the

right car at the right price', while nearly three out of 10 expected to strike a 'good

deal'. Although a fifth of non-franchised dealers' customers look to 'trade in' their

car, and 13% expect 'reliable and trustworthy' treatment, they are deemed less

critical aspects.

Three-quarters of motorists buy a used car

Twenty-six per cent of car owners in this year's survey had bought a new or used car

during the past two years compared with 24% last year – three-quarters of them

opting to buy a used rather than a new vehicle (see overleaf).

The same amount of men and women (26%) had bought a car over the past 24

months, 75% of men and 77% of women buying a used car instead of a new one.

Twenty-six per cent of car owners had bought a new or used car in the past two years



Cars bought over past two years – by age group

26 26 26

14

3034 34

17

28

76 77

70

8582

7875

6365

0

10

20

30

40

50

60

70

80

90

All ages Men Women 17-24 25-34 35-44 45-54 55-64 65+

Age

%

% bought car in last two years % of these bought used

Source: BMRB

A third of survey respondents in the 35-54 year age group had bought a car in the

past two years, compared to just 14% of 17-24 year-olds and 17% of 65 years-plus

motorists.

Car owners in the 25-34 year age group were the biggest buyers of used cars, 85%

of them opting for a used vehicle, as did 82% of 35-44 year-olds, in contrast to only

63% of 55 years-plus motorists who made a similar decision.

While a third of wealthier respondents had bought a new or used car in the past two

years, just one in 10 of low-income motorist had followed suit – 72% of the former

and 80% of the latter choosing a used car last time.

Seven out of 10 households own a car

For the third year running, 72% of families own at least one car, some way short of

the 77% of households in 2010's BCA consumer survey (see overleaf).

Households of 45-54 year-old respondents have the most cars, 79% of them have at

least one, while 42% of them own two or more vehicles. At the other end of the scale,

just 59% of the 17-34 year age group and 66% of low-income households have a car

at all, just 16% of the former and 10% of the latter in the two-car bracket.

Ninety per cent of wealthier families have at least one car, a half of them owning two

or more cars – while seven out of 10 owners of £20,000 plus vehicles have two cars,

12% of them with three or more cars in the household.

Car owners in the 25-34 year group were the biggest buyers of used cars



Recession and the

agonisingly slow

economic recovery

continue to take its toll

on car ownership in the

2013; households

without a car rising 5%

to 28% over the past

three years. Two-car

families which dropped

3% to 22% in 2012

edged up one point to

23% this year, while the

number of three or

more car families

remains at 5% of

households compared with 8% three years earlier.

Hatchbacks most popular

Hatchbacks increased

in popularity in this

year's survey, 4% more

car owners (51%)

choosing this option –

at the expense of

saloons which saw their

market share drop 5%

to 17%. MPVs' share of

the used car market

slipped to 7% from

10% a year earlier,

while Sport/Coupe's

edged up 2% to 6% of

the market.

Men (53%) have a slightly bigger appetite for hatchbacks than women (49%) who

favour a Micro/City Car (6%) more than their male counterparts at a lowly one per

cent. While three out of 10 motorists in the 65 years-plus group opted for a Saloon

last time they changed, one in 10 younger car owners chose to buy a Sports/Coupe.

On the price front, hatchbacks accounted for three out of five cars in the £5,000 to

£10,000 band – while Saloons and Sports/Coupes made up a quarter of used car

purchases in the £10,000 to £20,000 band.

Cars in the household

Two23%Three or more

5%

One44%

None28%

Source: BMRB

Type of used car bought

Hatchback51%

Saloon17%

Prestige1%

Micro/City4%

MPV7%

Sports/Coupe6%Off-road

5%

Other2%

Estate8%

Source: BMRB

Households without a car rose 5% to 28% over the past three years



Buying a used car rather than new

Three per cent

more car owners

than last year

(37%) said they

'couldn't afford a

new car' was the

chief reason for

buying a used car

– whereas a fifth

believe 'they offer

better value for

money'.

While a quarter of

men and a fifth of

women are

convinced 'used

cars offer better value for money', they are of a similar mind on the 'couldn't afford a

new car' front.

Forty per cent of car owners in the 17 to 54 year age bracket said they bought a

used vehicle because they 'couldn't afford a new car', in contrast to just a quarter of

65 years-plus motorists who expressed the same view.

Wealthier car owners believe more strongly than others that 'used cars provide better

value for money' (30%) and 'there is lower depreciation' (25%) – as do those who

bought cars in the £5,000 to £10,000 bracket.

Sales of used diesels rise

Diesel-engined cars’ share of the used car market rose 3% to 36% in this year's

survey to a level last seen in 2010, as growing numbers of diesels reach the used car

supply chain.

Diesel new car volumes accounted for 50% of the new car market in 2011 and 2012;

a rise of some 15% in five years. They are forecast to settle around this level for the

foreseeable future, suggesting sales of used diesels will rise steeply over the next few

years as much higher volumes of diesel-powered units enter the used car market.

Forty per cent of men bought a used diesel when they changed their car compared to

just 31% of women. While 44% of 35-44 year-old motorists bought a diesel-engined

used car last time, only a fifth of younger and 65 years-plus motorists made the same

decision.

Buying new or used?

3

6

10

16

22

37

More choice

Needed quickly

Always buy used

Depreciation

Better value

Couldn't afford new %

Source: BMRB

A quarter of men and a fifth of women are convinced 'used cars offer better value for money'



Diesel cars

become more

prevalent as

volumes rise in the

£10,000 to

£15,000 used car

price bracket. Half

the vehicles

bought in this price

band run on diesel,

as do two-thirds of

used cars costing

between £15,000

and £20,000.

Although 'better

fuel consumption' remains the foremost reason for buying a diesel-powered car, the

number of respondents citing this aspect dropped to 52% this year, compared with

57% in the 2012 survey and 68% in 2011. A third of used car owners think diesels

are 'cheaper to run', while 15% are convinced they have a 'more reliable engine'.

Used car satisfaction remains very high

Used car owners'

satisfaction with their

used car hit 95% for

the second year

running – those 'very

satisfied' reaching an

all-time high of 71%,

with a further 24% of

motorists saying they

were 'quite satisfied'

with their car.

While men and women

are equally 'satisfied'

(95%) with their used

car, the number of 17-

24 year-old motorists

'very satisfied' with

their car dropped nine points to 59% this year, a further 31% of them in the 'quite

satisfied' category.

Reasons for buying diesel

52

33

15

10 109

8 7

0

10

20

30

40

50

60

%

Fuelconsumption

Cheaper torun

More reliableengine

Maintainsvalue

Environment High mileage Engine lastslonger

Lower CO2

Source: BMRB

Used car satisfaction

Very satisfied71%

Quite satisfied24%

Neither3%

Quite dissatisfied

2%

Source: BMRB

Used car owners' satisfaction with their used car hit 95% for the second year running



Satisfaction high in 45-54 year sector

'Satisfaction' for all other age groups tops 90%; and is particularly high in the 45-54

year sector at 99% – 84% 'very satisfied' and 15% 'quite satisfied'. While

'satisfaction' of wealthier respondents was steady at 97%, low-income used car

owners dropped three points to 89% this time, just 57% claiming to be 'very

satisfied' and 32% 'quite satisfied' with their vehicle – a sign perhaps that many in

this group run older, out-of-warranty cars.

As in previous surveys, the number of car owners ‘satisfied’ with their used car rises

much in line with purchase price – reaching 97% for cars costing between £5,000

and £15,000 and 100% for cars priced over the £20,000 mark.



Part Three – Car Owners' Options and Buying Intentions

Buying a car in the next year?

A somewhat less

gloomy economic

outlook, higher

unemployment and

lower inflation saw

a rise in the

number of car

owners who said

they will 'certainly'

or 'quite likely' buy

a car in the next

12 months – up

4% to 14% year on

year. The number

of motorists, who

think there is a '50:50 chance' they will be in the market for a car, rose one point for

the second year running to 10%.

Fifteen per cent of men felt they would 'certainly' or 'quite likely' buy a car in the next

year, as did 12% of women. While a fifth of motorists in the 17-24 year age group

and 16% of wealthier car owners feel they might buy a car in the next 12 months, just

7% of motorists over the age of 55 feel the same way.

What type of car to buy next?

More than three-

quarters (78%) of

motorists intend to

buy a used car

next time they

change their car.

Of those who

intend to buy a

used car, 37%

plan to buy a

diesel compared

with 30% in last

year's survey –

short, though, of

diesels' current

50% share of the

new car market.

Likelihood of buying a car in the next year

5

9 10

26

20

28

3

0

5

10

15

20

25

30

%

Certainlywill

Quitelikely

50:50chance

Unlikely Certainlynot

Won'tbuy again

Don'tknow

Source: BMRB

Next car bought will be

42

26

31

3 26

3

12

0

5

10

15

20

25

30

35

40

45

%

Used

car p

etrol

Used

car d

iesel

Used

car h

ybrid

Used

car a

ltern

ative

Nearly

new

pet

rol

Nearly

new

dies

el

New ca

r petr

ol

New ca

r dies

el

Don't

Know

Source: BMRB

Rise in number of car owners who said they will 'certainly' or 'quite likely' buy a car in the next 12 months



The biggest prospective group of buyers of used cars are 25-44 year-old (83%) and

middle-income motorists (80%). More male (40%) than female (33%) used car buyers

intend to buy diesel next time – as are two out of five wealthier car owners and 90%

of those in the market for a car over £15,000.

Where to buy the next car?

Although some car owners might consider more than one option, the number of

respondents saying they planned to deal with a 'franchised dealer' slipped two points

to 48% this time, 57% of them planning to trade in their existing car. A third of

potential used car buyers plan to by 'privately' or from 'a family member or a friend',

16% from a non-franchised used car retailer and 9% from an 'Internet trader'.

Men (36%) are

more likely to buy

'privately' than

women (30%),

while a 'car

supermarket' is

preferred by 35-54

year-old car buyers

and owners of

used cars in the

£15,000 to

£20,000 price

band.

A half of 17-24

year-olds and low-

income car buyers

say they will buy

'privately' or from 'a friend or member of their family' on the next occasion, while only

12% of 65 years-plus are of a similar mind. Three out of five owners of cars costing

between £10,000 and £15,000 are intent on doing business with a 'franchised

dealer'.

Low or 0% interest next time?

Respondents to this year's consumer survey were asked 'If low or 0% interest finance

is available next time you change your car would you consider buying a new car

instead of a used one?'

This option seems a distinct possibility for 17% of potential car buyers, who said they

would 'certainly' consider buying a new car instead of used one, if low or 0% interest

finance is available at the time of their next change (see overleaf) – while a further

23% said it was 'quite likely' they would give this some thought.

Where next car will be bought

16

10

9

7

5

4

10

23

48

Don't know

Other

Auction

Car supermarket

Internet trader

Family friend

Used car dealer

Private

Franchised dealer %

Source: BMRB

17% of potential car buyers would 'certainly' consider buying a new car instead of new



Low or % interest; new instead of used car purchase

6

17

23

24

30

Don't know

Certainly

Quite likely

Unlikely

Certainly not %

Source: BMRB

Twenty-two per cent of wealthier and 45-54 year-old potential used car buyers said

low or 0% interest finance could 'certainly' tempt them to think about buying a new

car instead of a used one, compared to just 11% of older and low-income motorists.

Two out of five owners of cars in the £15,000 to £20,000 group said it is 'quite likely'

they could be persuaded to think about such a proposition.

Sell your car for cash next time?

A half of men and two out of five women said 'Yes' – when asked 'would you

consider selling your car directly for cash?'

Consider selling car 'for cash'

45

49

42

47

5356

43

38 37

0

10

20

30

40

50

60

All ages Men Women 17-24 25-34 35-44 45-54 55-64 65+

%

Source: BMRB International



While this opportunity seems to appeal more to 35-45 year-old and wealthier car

owners, and those with cars costing between £15,000 and £20,000, it is of much

less interest to older drivers. Auto Trader was cited as the most likely route of

'converting a car into cash' – favoured by two out of five of car owners who said they

might consider this option in this year's survey.

A quarter of respondents said they might consider 'eBay', while around a fifth of

motorists might look to a 'local newspaper ad/website', 'small local garage' or 'used

car trader'.

There is little difference between men and women and across age and social groups

on how best to sell a car 'for cash'. Auto Trader is favoured by a quarter of car

owners in the 17-44 year age group and a fifth of wealthier motorists, but has less

appeal for older and low-income drivers.

A similar pattern to Auto Trader exists for eBay. Older car owners (55-64 year-olds)

are more likely to use a 'local newspaper advert/website' and those in the 45-64 age

group lean towards selling to a 'small local garage' more than others.

Channels for selling car 'for cash'

1

2

5

6

6

7

8

15

18

18

19

25

39

Friend/family

Private sale

National newspaper ad/website

Used car supermarket

Auction

Non--franchised used car dealer

webuyanycar.com etc.

Franchised dealer

Used Car Trader

Small local garage

Local newspaper ad/website

Ebay

Auto Trader %


When it comes to price, selling 'for cash' through Auto Trader appeals more to

owners of cars initially costing between £3,000 and £10,000, and eBay for cars

valued between £2,000 and £5,000. On the other hand, owners of cars bought for

between £15,000 and £20,000 are more likely to try to sell 'for cash' through

'franchised dealers', 'car supermarkets' or 'auction'.

Auto Trader was cited as the most likely route of 'converting a car into cash'



Reasons for selling for cash

Reasons for selling 'for cash''

3

6

13

16

23

30

32

Use alternative transport

Cash for other reasons

Not afford to run car

Part deposit forreplacement

No longer need car

Negotiate better deal

Better price than tradingin the car

%


Car owners' reasons for considering selling their car 'for cash' provide an interesting

insight into the benefits motorists anticipate from this when replacing their car, rather

than trading it for a new or used vehicle.

A third of motorists believe they 'will achieve a better price than trading in their car', a

similar number think 'they will be able to negotiate a better deal on a new or used

car'— while nearly a quarter (23%) of motorists feel they would sell 'for cash' when

'they no longer need a car'.

While men (38%) believe more strongly than women (28%) that selling their car 'for

cash' obtains 'a better price than trading in their car', a third of both believe this will

allow them to 'negotiate a better deal on a new or used car'.

A fifth of 25-34 year-olds and low-income car owners would take the cash route if

'they could no longer run or maintain their car', while 21% of drivers in the 45-54 year

age group would think about 'retaining part of their car's value in cash and use part

as a deposit for a replacement vehicle'.

A half of cars owners, who bought a used car for between £10,000 to £15,000 and

two-thirds in the £20,000 plus band, are sure they 'will achieve a better price' if they

sell their existing car 'for cash' rather than trading it in.

A third of motorists believe they 'will achieve a better price than trading in their car'



Part Four – Economic Recovery and Car Running Costs

What car to buy during an economic uncertainty?

Having lived through the longest, deepest economic downturn on record, suffered

five years of financial pressures, with little hope of a swift recovery – what type of

vehicle might car owners think about buying next time they replace their car?

Buying a car during slow economic recovery

3

3

5

5

9

9

10

10

14

14

15

22

29

Bigger car

Lower specification

Low interest loan

Lower depreciation

Best part-exchange price

Used instead of new

Same type of car

Lower CO2

Lower maintenance

Smaller car

Best purchase price

Lower road tax

Better fuel consumption %


Only one in 10 respondents said they would 'buy the same type of car again', half as

many as three years earlier – with 90% of car owners planning to look for a different

type of car when they change.

Changing to a car with 'better fuel consumption' was cited by 29% of motorists,

while 22% were looking for a model with 'lower road tax'. 'Best purchase price', 'a

smaller car' and 'lower maintenance' were other prominent features that motorists

might take into account when deciding which car to buy next time round.

Men (31%) are more focused on finding a car with 'better fuel consumption' than

women (26%), whereas only a fifth of younger motorists have this in their sights. Car

owners, in the 45-54 year age group, are more interested than others in finding a car

with blend of 'better fuel consumption', 'lower road tax', 'lower CO2' and perhaps a

'smaller car'.

Only one in 10 respondents said they would 'buy the same type of car again'



People who own used cars that cost more than £20,000 are the most determined to

change their type of vehicle next time – in terms of 'better fuel consumption', 'lower

road tax', 'best possible purchase price', 'lower maintenance costs' and 'lower

depreciation'.

Steps already taken to cut car running costs

As average household income continues to run below inflation, many car owners have

had to find some way of controlling their car running costs.

Steps taken to substantially cut car running costs

2

4

5

5

6

7

9

9

10

12

13

15

15

21

15

Lower cost service provider

Fewer cars in the household

DIY service\repairs

Change to car lower insurance

Close windows when possible

Shorter trips

Use public transport

Switch off air conditioning

Lower insurance premium

Bought a smaller car

More fuel efficient car

Accelerate less quickly

Avoid heavy breaking

Drive more slowly

Tyres at right pressure %

Source: BMRB

Seventy eight per cent of respondents this year said they had already taken steps to

cut their car running costs – a rise of 8% over last year's survey. Motorists will clearly

adopt a range of these measure and, taken together, 'keeping tyres at the right

pressure' (22%), driving more slowly' (15%), 'avoiding heavy braking' (15%)

'accelerating less quickly' (15%) and 'a more fuel-efficient car' (13%), will produce big

savings.

Similar to last year, men are far more determined than women to introduce cost-

cutting measures, as are car owners in the 35 to 54 year group – whereas very few

younger motorists have 'cutting car running costs' on their agenda.

Men are more determined than women to introduce cost-cutting measures


Regional Review

The BCA consumer research provides a valuable insight into the pattern of car

owners' buying and owning experiences across the various regions in the UK.

This year's survey shows that Northern motorists (35%) were the biggest buyers of a

new or used car during the past two years, with South Western, Welsh, East Anglian,

East and West Midlands' car owners not far behind. Just a quarter of South Eastern

and Scottish car owners had bought a car over the past two years, while London

remains the lowest car buying region of all, only 12% of respondents buying a new or

used car in the past 24 months, 3% fewer than the previous year.

Car bought over past two years

12

25

32

31

31

29

30

27

26

35

25

London

South East

South West

Wales

East Anglia

East Midlands

West Midlands

Yorks/Humb

North West

North

Scotland

%

Source: BMRB

When choosing between a new and used car, Yorkshire and Humberside topped the

used car buying league; 83% of car buyers opting for a used vehicle, as did 80% of

East Midland car owners. Three-quarters of West Midlands and Welsh car owners

had bought a used car in the past two years as did two-thirds of Scottish car buyers.

‘Personal experience' tops the list in nine regions

‘Personal experience of make/model' is the most influential factor in nine of the UK's

11 regions when considering what car to buy next – cited by two out of five

respondents in Yorkshire/Humberside and a third of motorists living the South West,

East Anglia, East and West Midlands and the North (see overleaf).

'The views of friends and family' resonate most with car owners in the South West

(32%) and the East Midlands (30%), but much less so with East Anglian car owners at

just 19%. Taking a 'test drive' is important to nearly three out of 10 Londoners, while

'independent Internet sites' are favoured most in the West Midlands.

Northern motorists were the biggest buyers of a new or used car during the past two years

Regional Review


Considering what car to look for

282323

14

21

14

10

15

17

34

24

17

26

35

34

26

38

34

33

24

26

32

25

19

30

29

23

24

24

9

20

28

21

28

17

24

21

12

21

11

11

13

15

17London

South East

South West

Wales

East Anglia

East Midlands

West Midlands

Yorks/Humb

North West

North

Scotland

%

Personal experience Friends/Family Test drive Internet

Source: BMRB

When to buy the next car?

Welsh car owners (16%) are most likely to buy a car in the next year as are 15% of

South Eastern respondents – in contrast to just 10% of their Northern counterparts.

Buying a car in the next 12 months

3

6

5

5

3

6

1

4

3

5

4

6

7

10

9

11

9

9

10

7

8

9

6

9

11

9

11

9

13

7

10

14

13

79

75

78

78

81

82

71

74

77

78

75London

South East

South West

Wales

East Anglia

East Midlands

West Midlands

Yorks/Humb

North West

North

Scotland

%

Certainly Quite likely 50/50 Unlikely/Not

Source: BMRB

Fourteen per cent of East Anglian and 13 % of Welsh car owners said there was a

50/50 chance they would buy a car in the next 12 months, whereas 82% of Scottish

motorists felt they were unlikely or wouldn't follow suit in the coming year.

Regional Review


Where to buy the next car?

While nearly two-thirds (64%) of Scottish motorists and 59% of South Western

respondents plan to deal with a franchised dealer when they replace their vehicle, car

owners in Wales and the North West are less inclined to do so.

Where to buy the next car

6412

5

46

47

42

39

53

40

39

44

49

59

15

20

14

22

25

17

11

17

13

13

2

6

13

10

8

16

14

6

3

14

London

South East

South West

Wales

East Anglia

East Midlands

West Midlands

Yorks/Humb

North West

North

Scotland

%

Franchised Independent Private/family

Source: BMRB

Non-franchised used car retailers are favoured more in the East Midlands (25%),

West Midlands (22%) and the North West (20%) than other UK regions, but much less

so in Wales where just 11% of respondents said they have this in mind.

Motorists most likely to buy their next car 'privately or from a friend or family member'

live in London (16%) and South East, cited by 14% of car owners.

What car to buy next?

Three-quarters of South Western, Welsh, East Anglian and East and West Midlands'

car owners have a used car in their sight when they next make a change, whereas

Norhern motorists are more likely than others to be in the market for a nearly-new

vehicle than their North Western neighbours.

Buying a new car is more likely to be in the frame for Scots and Londoners, but much

less so for those car owners living in the East Midlands or East Anglia .

Non-franchised used car retailers are favoured more in the East Midlands

Regional Review


What type of car next?

67

76

72

69

76

76

61

67

70

76

76

7

6

6

8

1

9

7

6

8

1

15 12

15

10

8

4

13

10

9

5

11

16

12

10

12

10

7

12

12

13

10

12

17

London

South East

South West

Wales

East Anglia

East Midlands

West Midlands

Yorks/Humb

North West

North

Scotland

%

Used car Nearly new New car Don't know

Source: BMRB

Satisfied used car owners

The most satisfied motorists in this year's consumer survey live in Yorkshire and

Humberside, where 90% were 'very satisfied' with their used car and a further 9%

were 'quite satisfied' with their purchase. The lowest satisfaction level was recorded

in East Anglia at 90%.

Four out of five Northern and three-quarters of South Western and North Western

used car buyers confirmed they were 'very satisfied' with their car, in contrast to just

53% of Londoners and 62% of South Eastern cars owners who felt the same way .

Very satisfied and quite satisfied used car owners

67

81

76

90

69

67

70

72

75

62

53

25

11

17

9

30

29

20

26

23

31

39

Scotland

North

North West

Yorks/Humb

West Midlands

East Midlands

East Anglia

Wales

South West

South East

London %

Very satisfied Quite satisfied

Source: BMRB

The most satisfied motorists live in Yorkshire and Humberside

Regional Review


Major influences on car search

When asked what most influenced the way they conduct their search for a car, 77%

of West Midlands' car buyers were driven mostly by 'price range', as were 69% of

Northern, East Midlands and South Western car owners – in contrast to Londoners

(59%) and South Eastern (60%) respondents who were less preoccupied by price.

Searching for car influences

59

60

69

67

61

69

77

62

56

69

64

38

40

40

36

41

41

33

37

46

47

30

38

36

34

45

32

32

41

43

34

31

37

London

South East

South West

Wales

East Anglia

East Midlands

West Midlands

Yorks/Humb

North West

North

Scotland%

Price Brand Model

Source: BMRB

At 47% and 46% respectively, the North and the North West top other regions for the

influence that 'brand' has on the way car buyers search for the car of their choice. In

contrast, just three out of 10 Scottish motorists chose 'brand as a significant factor.

Welsh used car buyers (45%) were driven more by 'model range' than other motorists

as were 43% of Yorkshire/Humberside car shoppers.

Selling your car 'for cash'

Selling their car 'directly for cash' appeals most to Londoners and West Midlands' car

owners; 57% of the former and 55% of the latter indicating they would consider doing

so when they came to replace or dispose of their existing vehicle.

Selling 'for cash' is a less attractive proposition for car owners in the North of

England, however – just 33% of Northerners and 37% North Western motorist were

prepared to consider selling for cash.

Selling their car 'directly for cash' appeals most to Londoners and West Midland's car owners

Regional Review


Sell car for cash

57

43

48

43

46

41

55

49

37

33

46

London

South East

South West

Wales

East Anglia

East Midlands

West Midlands

Yorks/Humb

North West

North

Scotland %

Source: BMRB

Buying a new car instead of used

Buying a new car rather than used

29

11

12

19

6

12

20

16

19

13

30

25

26

21

12

25

23

21

24

22

20

22

21

34

23

30

19

24

19

24

18

23

19

25

29

44

39

50

41

40

36

41

44

29

London

South East

South West

Wales

East Anglia

East Midlands

West Midlands

Yorks/Humb

North West

North

Scotland

Certainly Quite likely Unlikely Certainly not

Source: BMRB

Regional Review


East Anglians not in the frame

More than half of London (54%) and Scottish (52%) survey respondents said they

would 'certainly' or 'quite likely' consider buying a new car instead of a used one if a

'low or 0% interest new car finance deal' was available next time they change their

car.

On the other hand, 'low or 0% new car finance' is much less likely to persuade East

Anglian car owners to think about buying a new rather than used car – just 6% of

them would 'certainly' and 25% 'quite likely' consider this prospect, half of them

declaring it is 'certainly not' in the frame as far as they are concerned.


European Overview This section of the Used Car Market Report looks at new and used car markets in key

European countries that make up the EU27, plus the three European Free Trade

Association countries (EFTA). Western Europe is the original EU15 states plus EFTA.

EU15 Austria, Belgium, Denmark, Finland, France, Greece, Germany, Ireland, Italy,

Luxembourg, the Netherlands, Portugal, Spain, Sweden, the UK

EU25 EU15 plus the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland,

Slovakia, Slovenia

EU27 EU 25 plus Bulgaria, Romania

EFTA3 Iceland, Norway, Switzerland

Western Europe EU15 plus EFTA3

Europe has a population of 504 million and a car parc of some 239 million passenger

cars, 202 million of them in Western European countries. According to ACEA (European

Automobile Manufacturers Association), Europe has two million people directly involved

in automotive manufacturing and a further 4.6 million jobs in related manufacturing and

services sectors.

New car market volumes

Europe's new car registrations peaked at 16 million units in 2007. Despite the support of

wide-spread scrappage incentive schemes in 2009 and 2010, new car volumes dropped

to 12.5 million over the past five years– some three million units lower than pre-recession

levels.

European new car volumes; EU27 plus EFTA 2003 – 2012

15.8

12.5

15.115.3 15.3

13.613.8

14.514.7

16.0

10

11

12

13

14

15

16

17

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Mill

ions

of ca

rs

Source: ACEA

Europe's new car volumes dropped to 12.5 million over the past five years

European Overview


Western Europe's (EU15/EFTA) new car sales, which accounted for 94% of the

overall European total, tumbled 8.1% and one million units to a 20-year low of 11.8

million in 2012.

Western European markets

Of Europe's major markets, only the UK saw its new car volumes rise in 2012, by

5.3% to 2.04 million units. While Germany's new car sales slipped 2.9% to 3.08

million, the remaining major markets suffered a more marked decline as they

struggled with recession – France (-13.9%), Italy (-19.9%) and Spain (-13.4%).

EU15 new car registrations; 2012

3.08

2.041.90

1.40

0.700.50 0.49

0.34 0.280.17 0.11 0.08 0.06 0.05 0.03

0.00

0.50

1.00

1.50

2.00

2.50

3.00

Mill

ions

German

y UK

Fran

ce Italy

Spain

Nethe

rland

s

Belgium

Austri

a

Sweden

Denmar

k

Finlan

d

Irelan

d

Greece

Luxe

mbu

rg

Portug

al

Source: ACEA

Apart from the UK, and Denmark and Luxembourg (where new car markets were flat

last year), all other Western European countries saw their new car volumes drop in

2012, most notably Greece (-40.1%), Portugal (-37.9%), Belgium (-14.9%) and

Ireland (-11.5%).

While German new car market volumes slipped 2.9% to 3.08 million units in

2012, they remain in touch with pre-recession levels. French new car sales,

which had remained relatively strong during several years of financial uncertainty,

fell 13.9% and 305,000 units to 1.9 million in 2012, dropping to third place in the

EU new car sales league.

Italy's and Spain's new car sales struggled in 2012. Italy recorded the biggest fall

of the EU's major new car markets, dropping 350,000 units (19.9%) to 1.75

million – 1.1 million less than 2007's pre-recession figure. Spain's new car

volumes continued their steep downward trend, falling a further 13.4% (108,000

units) to 700,000 – less than half the volumes recorded in the mid 2000s.

Italy's and Spain's new car sales struggled in 2012

European Overview


New car sales major EU markets; 2003 – 2012

1.90

2.202.25

2.01 2.01 2.072.00

2.06 2.05

2.27

3.083.17

2.92

3.24 3.27 3.323.47

3.153.09

3.81

1.40

1.75

2.25 2.26 2.242.33

2.50

2.16

1.96

2.16

0.700.81

0.98

1.52

1.381.53

1.63 1.61

1.16

0.95

2.041.94

2.34

2.40

2.442.572.58

2.032.13

1.99

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Mill

ions

of

units

France Germany Italy Spain United Kingdom

Source: ACEA

UK new car volume growth outpaced the European market by some distance in

2012, rising 103,000 to 2.04 million units, regaining second place in Europe's

new car sales table.

The major markets' (France, Germany, Italy, Spain and the UK's) share of the EU's

new car business was stable at 72.9% last year, thanks to the significant rise in UK

new car sales and Germany's volumes dropping less than the overall EU market.

New member states

New car sales new EU member states, 2012

273.6

174.0

69.3 66.453.0 48.6

19.4 17.3 12.2 10.7

0

50

100

150

200

250

300

Polan

d

Czech

Rep

l

Slov

akia

Roman

ia

Hunga

ry

Slov

enia

Bulgar

ia

Esto

nia

Lithu

ania

Latvi

a

Tho

usan

ds

Source: ACEA

European Overview


Apart from Romania (-18.7%) and Slovenia (-16.7%), which saw their new car sales

fall substantially last year, all other Eastern European countries outpaced overall EU

performance. While Hungary's new car volumes rose 17.6% to 53,000 units in 2012,

and the Czech Republic's volumes remained flat at 174,000 – the CEE's largest new

car market, Poland, experienced a fall of just 1.4% to 273,600 units.

Used car volumes

Overall European used car volumes are considerably higher than EU new car sales;

the six biggest markets in this report accounting for over 25 million used car sales

last year.

Used car volumes, 2012

7.16.9

5.4

2.5

1.8 1.6

1 0.8 0.7 0.5 0.4

0

1

2

3

4

5

6

7

8

Mill

ions

UK

German

y

Fran

ce Italy

Nethe

rland

sSpain

Sweden

Austri

a

Belgium

Denmar

k

Portug

al

Source: National Trade Bodies

The major used car market trends' chart shows UK used car volumes dropped from

7.4 million to 6.3 million units in 2009 during a period of recession and economic

downturn, recovering over the past three years to 7.1 million in 2012 – maintaining

the UK's position as Europe's largest used car market.

While Germany's used car sales continued their recovery, rising half a million units to

6.9 million in 2012, French and Spanish used car volumes have been flat for several

years.

Italian used car sales, which had been surviving the country's serious economic woes

relatively well, slipped some 300,000 units to 2.5 million in 2012, some way short of

pre-recession levels.

Maintaining the UK's position as Europe's largest used car market

European Overview


Used car volumes major markets, 2003 – 2012

5.25.4

5.65.55.45.45.3 5.5 5.5 5.4

6.06.16.3

6.76.6

6.86.8

6.4 6.4

6.9

2.9 2.8

3.23.23.12.92.93.0

2.82.5

1.41.51.71.61.6

1.21.4

1.7 1.6

1.6

6.3

6.7 6.6

7.2

6.8

7.37.1

7.4

6.7

7.1

0

1

2

3

4

5

6

7

8

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Mill

ions



Car parc

Seven out of 10 of Europe’s 239 million cars are located in the five main markets of

France, Germany, Italy, Spain and the United Kingdom. Car ownership varies

considerably across Europe.

Parc sizes, 2011

42.9

36.5

31.4 30.5

22.0

7.6

5.2 4.5 4.4 4.32.1

0

5

10

15

20

25

30

35

40

45

Mill

ions

German

yIta

ly

Franc

eUK

Spain

Nether

lands

Belgium

Portug

al

Austria

Sweden

Denmar

k

Source: Eurostat

European Overview


Germany has the highest car density of the large markets, at 517 per 1,000

inhabitants, followed by France with 502 and the UK's 470 per 1,000 of the

population. There are 477 cars per 1,000 population for Europe as a whole,

compared with 461 cars per 1,000 people in the USA, 456 in Japan and just 32 in

China.

The average age of cars on European roads is 8.3 years. The UK has the youngest

car parc of the EU’s major markets at 7.6 years compared with Germany's 8.3,

France's 8.2.

Parc turn percentage

The dynamism of any car market can be measured by the churn in the marketplace

i.e. – the number of vehicles changing hands each year relative to the country's car

parc – known as the ‘parc turn’. Countries, with a well-developed wholesale

infrastructure for used cars, and tax-friendly treatment of used car sales, generally

have a much higher churn of vehicles.

Parc turn percentages, 2012

33.8

30.1 29.9 29.6

26.2

23.4 23.2 23.1

12.110.7 10.3

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

%

Denmark UK

Netherl

ands

Sweden

Austria

Belgium

German

y

Franc

e

Portug

alIta

lySpain

Source: ACEA/National Trade Bodies

With combined new and used car sales of 9.1 million units, the United Kingdom

remains the most dynamic of Europe's major car markets with a parc turn of 30.1% in

2012, some seven points ahead of Germany's figure of 23.2 % and France’s 23.1%.

This underlines the UK’s highly-developed infrastructure of the country's used car

sector and strong wholesale market.

The UK has the youngest car parc of the EU's major markets

European Overview


Italy's parc turn tumbled to 10.7% in 2012 from 12.5% in 2011, as its combined new

and used car volumes fell by nearly half a million units last year. Spain’s parc turn

continued to drop in 2012, by a further 0.6% to 10.3% driven by a 174,000 downturn

in new car volumes.

Parc turn percentage major markets, 2003 – 2012

2324

2526

25 25 25 2524

25

2322

2322

22 22 22

20

22

24

1112

15

15 15

1516

15

1314

1011

12

15

14

16

15

16

1211

30

28

33

31

3332

34

292928

5

10

15

20

25

30

35

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

%


Source: ACEA/National Trade Bodies

The UK's parc turn, which dropped from 34% in 2003 to settle at 28%/29% during

the country's longest and deepest economic crisis, rose to 30% in 2012, as new and

used car volumes showed signs of recovery. Apart from a dip in 2007, the German

parc turn has been relatively flat over the past 10 years, hitting 24% in 2009 due to

higher scrappage incentivised new car volumes.

The French parc turn remained remarkably steady until 2011, slipping to 23% in 2012

as its new car volumes dipped by 305,000 units. Italy's parc turn has been almost in

'free fall', dropping from 16% in 2007 to just 11% in 2012, as its new and used car

volumes fell steeply over the past five years.

A roughly similar picture exists for Spain, which has seen its parc turn slide six points

since 2007 to 10%, as its new car sales more than halved during this period.

Spain has seen its parc turn slide six points since 2007

European Overview


Used:new volume ratios

The UK's used:new volume ratio edged up a further decimal point to 3.5:1 in 2012,

heading the EU's other major car markets by some distance. France's figure rose

from 2.4:1 to 2.8:1 year on year, reflecting a marked drop in new car sales rather a

lift in used car volumes.

In much the same vein, Italy's and Spain's used:new car ratios also rose in 2012, to

1.8:1 and 2.2:1 respectively, as their new car volumes fell sharply. While Germany's

ratio remained at 2.2:1 for the second year running, the Netherland's used:new ratio

rose two points to match the UK's at 3.5:1. Portugal's 4.6:1 used:new car ratio is a

reflection of the collapse of the indigenous new car market.

Used:new volume ratios, 2012

1.5

1.8

2.2

2.2

2.4

2.8

3.2

3.5

3.5

3.5

4.6

Belgium

Italy

Germany

Spain

Austria

France

Denmark

UK

Netherlands

Sweden

Portugal

Source: ACEA/ National Trade Bodies

Used car sales per 1,000 population

The UK continues to top the 'used car per 1,000 population' rankings, its ratio up

four points to 113 in 2012 – leaving the EU's other large car markets very much in its

wake. Germany's used car per 1,000 inhabitants rose from 79 to 84 year on year,

while France's dropped three points to 82.

While Spain's figure remained flat with a poor score of 34, Italy's used car sales per

1,000 people was down from 47 in 2011 to 41 in 2012.

The UK continues to top the 'used car per 1,000 population' rankings

European Overview


Used car sales per 1,000 population, 2012

113

106

105

98

96

84

82

66

42

41

34

UK

Netherlands

Sweden

Denmark

Austria

Germany

France

Belgium

Portugal

Italy

Spain


United Kingdom

While UK new car sales rose

103,000 units to 2.04 million in

2012, they remained some half

a million less than those

recorded in the early 2000s.

However, UK new car volumes

have been gathering pace

during the first half of 2013 and

are forecast by the SMMT to

reach 2.22 million units for the

full year.

The UK’s used car volumes

rose 430,000 to 7.1 million units in 2012; its performance ratios of a 30% parc turn, a

3.5:1 used:new volume ratio, and used car sales of 113 per 1,000 inhabitants,

outstripping those of the other major EU used car markets.

UK used car sales; 2008 – 2012

6.76.3

6.6 6.77.1

0

2.5

5

7.5

2008 2009 2010 2011 2012

Mill

ions


UK new car volumes have been gathering pace during the first half of 2013

European Overview


Germany

Although Germany's new car volumes dropped 90,000 to 3.08 million last year; it

maintains a lead of around one million units over its nearest rival, the UK, in the EU

new car sales rankings.

Germany’s used car volumes

recovered from a recessionary

low of six million in 2009, rising

half a million units to a new

high of 6.9 million in 2012,

challenging the UK's long-held

position at the top of the used

car sales tree.

Germany saw its used car

performance ratios improve

considerably last year – its parc

turn rose 0.8% to 23.2%,

used:new ratio was up from

2.0:1 to 2.2:1, and its used car

sales per 1,000 people reached an all-time high of 84.

Italy

Italy's car market suffered a 'double whammy' in 2012. Its new car and used car

sales both tumbled – the former by 350,000 to a lowly 1.75 million and the latter by

300,000 to 2.5 million units.

Italy’s already very low

performance indicators

suffered accordingly, its parc

turn dropping 1.8% to 10.7%

and used car sales per 1,000

inhabitants down from 47 to 41

year on year.

A 19.9% fall in new car sales

versus a lower drop of 10.7%

in used car volumes saw Italy's

used:new volume ratio rise

from 1.6:1 in 2011 to 1.8:1 in

2012.

German used car sales; 2008 – 2012

6.1 6.06.4 6.4

6.9

0.0

2.5

5.0

7.5

2008 2009 2010 2011 2012M

illio

ns


Italian used car sales; 2008 – 2012

3.0 2.92.8 2.8

2.5

0.0

2.0

2008 2009 2010 2011 2012

Mill

ions


Germany saw its used car performance ratios improve considerably last year

European Overview


France

French new car market

volumes fell for the second

year in 2012, by 305,000 to 1.9

million units – surrendering

second place to the UK in the

EU's new car sales rankings.

French used car sales held up

reasonably well in 2012,

slipping just 2.1% to 5.36

million as France entered

recession in the second half of

the year.

The marked decline in France's

new car volumes saw its parc

turn drop 1.3% to 23.1%. and its used:new volume ratio rise from 2.5:1 in 2011 to

2.8:1 in 2012. The French used car sales per 1,000 population of 85 was relatively

flat year on year.

Spain

Spain's new car market

remains under pressure as the

country continues to fight

recession with little or no

respite in sight.

While Spanish new car

volumes fell by 108,000 to a

low of 700,000 in 2012, its

used car sales remained

stable at 1.57 million units.

Spain's used car sales per

1,000 people held steady at

34 last year, while its

used:new volume ratio went

up from 2.0:1 in 2011 to 2.2:1 in 2012. The country's parc turn, on the other hand,

dipped from 10.9% to 10.3%, the lowest in Western European

French used car sales; 2008 – 2012

5.45.2

5.5 5.5 5.4

0

2

4

6

2008 2009 2010 2011 2012

Mill

ions


Spanish used car sales; 2008 – 2012

1.51.4

1.71.6 1.6

0

0.5

1

1.5

2

2008 2009 2010 2011 2012

Mill

ions


Spain's new car market remains in pretty dire straights

European Overview


Additional sources include:

ACEA (Association des Constructeurs Européens d’Automobiles)

Office for National Statistics

Verband der Automobilindustrie e.v.

Statistisches Bundesamt Deutschland

Zentralverband des dt. KFZ-Gewerbes

Ministerie de l’Equipement, des Transports et du Logement

CCFA (Comité des Constructeurs Français d’Automobiles) France

Centraal Bureau voor de Statistiek, Nederland

FederAuto, Belgium

National Institute for Statistics, Belgium

Danish Automobile Federation

Danmarks Statistik

ANFIA - Studies & Statistics, Italy

INE, España

GANVAM, España

Marketing Systems Iberia

ACAP (Associacão do Comércio Automóvel de Portugal)

Statistik Austria



Professor Peter N C Cooke

The UK used vehicle industry is influenced by a complex mix of external

macroeconomic factors as well as consumer demand for used cars.

Macroeconomics is rather like a long train journey. One looks through the window

gathering little more than a hazy appreciation of what you see whizzing by. Not until

the train stops can one can take in a deeper view of a microcosm of the journey.

This section of the report considers some of the wider influences; politics, the

economy, position in the economic cycle, surrounding countries – and their effect on

the new car industry which, in turn, impacts on the used car market. It also updates

some of the economic data presented in the BCA Broad View Report published in

April 2013.

Given the inter-relationship and complexity of the global automotive industry, changes

far away increasingly influence what happens in the UK.

UK economic recovery versus other countries

There is little doubt the UK economy has recovered less quickly and less robustly

from recession than other major economies – which, of course, has knocked through

to new and used car sales performance.

Profile of UK economic downturn vs. leading world economies; 2006 - 2013

106.4

99.2

101.3

91.3

98.8

96.1

103.5

97.4

85

90

95

100

105

110

2006

Q1 Q3

2007

Q1 Q3

2008

Q1 Q3

2009

Q1 Q3

2010

Q1 Q3

2011

Q1 Q3

2012

Q1 Q3

2013

Q1

Q1 2008 = 100

Canada France Germany Italy

Japan United Kingdom Revised USA United Kingdom Previous

Source: ONS

There is little doubt the UK economy has recovered less quickly than other major economies



The economies of Canada, Germany, and the USA have more then made up the

ground lost due to recession, with Canada performing the strongest. Japan's,

France's and the UK's economies have yet to recover to the level of output at the

start of the economic crisis, while Italy's output continues to contract.

The most recent revisions to the UK's GDP, in the Blue Book 2013, show the country

had a deeper initial downturn than initially reported, greater than all the countries

shown except Japan. The UK is also recovering more slowly than all but Italy,

languishing at just 96.1% of Quarter 1 2008's output – 21 quarters below the pre-

recession 'Plimsoll Line' so far.

UK economic recovery

Rarely a day goes by without some commentary on the rate of the UK's economic

recovery. Maybe, as many economists like to state, ‘the current recovery is different –

it’s based on a recession of our own making’. Of course, one might argue that

recovery should be of our own making too.

However, there is no denying the country's economic recovery has been slow

compared with other recessions. In the first quarter of 2013, the volume of output

was 4.1% below the pre-recession peak – a bigger gap than the first published

shortfall of 3%. The downturn in 2008/2009 was deeper than first thought, and the

pace of recovery has also been significantly slower than previously estimated.

Profile of current UK economic downturn compared with past three recessions

104.6

103.4

107.8

97.0

95.9

90

95

100

105

110

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Pre-recession peak = 100

Q2 1973

Q2 1979

Q2 1990

Q1 2008 - Previous

Q1 2008 - Revised

Source: ONS

The chart shows that, in the economic downturns in the 1970s, 1980s and 1990s,

output recovered to its pre-recession peak between 12 and 14 quarters after the start

of the downturns. Both the previously published and revised estimates by the ONS

suggest that the UK's output remains some considerable way below this benchmark

following the 2008/2009 recession – at the 21 quarter stage.

The UK is recovering more slowly than all but Italy



The practical implications of this unprecedented trend?

Given that recovery from the previous recessions was driven partly by increased

house building, rises in house prices, and the government’s current policies of

encouraging house building with subsidised mortgages, is it reasonable to expect a

more rapid economic recovery?

Changes in GDP

At a more mundane level, the following chart illustrates how gross domestic product

(GDP) has changed over the past seven years. The orange line indicates the quarter

by quarter by change versus the previous year, while the blue columns show changes

versus the previous quarter.

UK GDP Growth vs. pervious quarter and previous year; 2006 - 2013

1.3

0.8 1.

2

-1.5

-0.2

0.4

0.4 0.

6

-0.4

0.5

-0.1

0.7

-0.20.

0

0.7

0.3

-1.8

0.6

0.6

-0.5

-0.9

0.10.2

1.21.3

0.4 0.5 0.7

0.1

-2.1

-5.4

-3.3

1.5

0.3

-2.5

0.0

2.4

0.1

0.0

1.11.0

3.7

2.7

2.12.0

2.6

3.6

4.6

3.8

2.7

1.1

-6.1

-2.4

0.5

2.0 1.8

0.8

1.7

-4.6

0.6

-7.0

-6.0

-5.0

-4.0

-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

2006

Q1

2006

Q3

2007

Q1

2007

Q3

2008

Q1

2008

Q3

2009

Q1

2009

Q3

2010

Q1

2010

Q3

2011

Q1

2011

Q3

2012

Q1

2012

Q3

2013

Q1

-7.0

-6.0

-5.0

-4.0

-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

vs.Previous Quarter vs. Quarter previous year

Source: ONS

The overall message is again one showing a slow, uncertain economic recovery. The

challenge is whether GDP has yet pulled into a positive and sustainable pattern, and

if the slow move towards economic recovery is yet sufficient to generate sustainable

growth and encourage consumers back into the market.

Such a historic pattern is hardly inspiring yet, as is presented in the individual car and

LCV chapters, the more recent marked rise in sales has perhaps been driven by

short-term market conditions and incentives; a message which has confounded the

best of forecasters.

Is it reasonable to expect a more rapid economic recovery?



CPI and RPI

One of the most immediate and important pointers for new and used car buyers is the

rate of inflation. Will their incomes keep up with higher costs and will would-be buyers

be able to afford a new or younger used a car?

CPI and RPI; 2006 - 2013

3.1

2.8

-2.0

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

Jan

2006

Jan

2007

Jan

2008

Jan

2009

Jan

2010

Jan

2011

Jan

2012

Jan2

013

%

% c

hang

e o

n p

revi

ous

yea

r

RPI CPI

GovernmentCPI Target

Source: ONS

CPI is regarded as the benchmark for inflation – portraying the rise in the cost of

goods and services. The figures show a steep drop in prices at the depth of the

economic downturn, which have since recovered and are now running close to a 3%

rise year on year – compared with the Bank of England's CPI inflation target of a 2%

growth per annum.

The new Governor of the Bank of England may well have different ideas in terms of

helping to promote economic recovery, perhaps taking a greater hit on inflation.

Average wage rates rises are currently running in the region of 1% per annum – so

individuals and families are having their real spending power eroded. Quite simply,

they are able to buy less and less with their incomes. The age of austerity?

The chart overleaf shows the quantity of goods bought in the retail sector (retailing

sales volumes) and the amount spent (retailing sales values).

The volume and the value of retail sales grew steadily between Quarter 1 2004 and

Quarter 1 2008. The former rose by 11.4%, and the latter by 14.5%, the difference

due to price rises, CPI having increased by 9.3% over the same period. At the same

time, gross domestic product (GDP) grew by 11.6%.

The volume and value of retail sales grew steadily



UK retailing volumes and values; 2008 - 2013

103.5

110.6

90

95

100

105

110

115

2008

Jan

2008

Apr

2008

Jul

2008

Oct

2009

Jan

2009

Apr

2009

Jul

2009

Oct

2010

Jan

2010

Apr

2010

Jul

2010

Oct

2011

Jan

2011

Apr

2011

Jul

2011

Oct

2012

Jan

2012

Apr

2012

Jul

2012

Oct

2013

Jan

2013

Apr

Index level 2010 = 100

Volume Value

Source: ONS

Between Quarter 1 2008 and Quarter 1 2013, the volume of retail sales grew by just

1.2%. The value of retail sales rose by 12.8% during this time, highlighting the extent

that prices have risen since the start of the economic downturn – CPI up by 17.8%.

Average UK household disposable income; 2009 - 2013

£155

£157

£154

£162

£165

£159

140

145

150

155

160

165

170

175

Jan-

09 Mar

May Ju

lySep

tNov

Jan-

10 Mar

May Ju

lySep

tNov

Jan-

11 Mar

May Ju

lySep

tNov

Jan-

12 Mar

May Ju

lySep

tNov

Jan-

13 Mar

£ p

er w

eek

curr

ent

pric

es e

xcl b

onu

ses

Source: Asda/Centre for Economics and Business Research

One further chart in this sequence, taken from the monthly Asda Income Tracker,

shows how much average household disposable income has been eroded over the

past five years. Given that used cars are acquired almost exclusively by private

buyers, the importance of household disposable income is crucial.



Implications of the macroeconomic Issues?

Some of the problems the macroeconomic environment has created for the European

motor industry are having an impact on the UK new car sector;

The steep fall in new car sales in many Eurozone markets has seen a number of

manufacturers offering substantial discounts and exceptional finance deals to

boost volumes in the more buoyant UK market.

Discounting and pre-registration measures could persuade some potential used

car buyers to opt for a lower specification, lower-priced, smaller new car rather

than a used one, with implications for dealer used car operations.

It is possible that the new car sales decline in mainland EU markets may have a

longer-term effect on model mix and brand volumes in the UK, as well as ongoing

service business.

A new economic policy?

The new Governor of the Bank of England, Mark Carney, has delivered his first and

much-trailed press briefing on his planned policy. The intention is to hold interest

rates at their current level until unemployment drops to 7%, to help reduce

unemployment and kick start economic recovery.

However, this strategy could be at the expense of inflation and return on savings –

resulting in savers, pensioners and others on fixed incomes taking the biggest hit. It

will be interesting to see how politically acceptable this approach is with a general

election looming.

What does the future hold?

The effect of the new Governor's policy will take time to emerge and, at the time of

writing, the jury is still out on its impact.

Recent forecasts suggest the United Kingdom, if not the Eurozone, has started the

long, slow climb back to economic recovery. However, there is still more austerity to

come and government expenditure has to be cut still further. While the Chancellor

has unveiled the need for a further £11 billion of cuts in public sector expenditure,

independent economists are already debating a further £15-20 billion reduction.

Although discussions have tended to focus on cost reduction, the real need is for

expansion in production and services – which is discussed in the next chapters.

The message, looking at the macroeconomic indicators in the foregoing paragraphs,

suggest that as the economy starts to recover there may be a shortage of used cars

to satisfy a potentially pent-up demand. While the used car and used LCV sectors

have been able to cope with the decline in demand so far, the challenge will come as

the economy starts to recover.

There is still more austerity to come


Purple Patch or Grey Mist?

A Unique New and Used Car Market


The prolonged economic problems caused by the banking crisis and, latterly, the

Euro crisis have created a unique new and used car market situation in Europe and

the United Kingdom in particular.

These notes seek to analyse the new car market situation and highlight the niche

market in the United Kingdom in 2013 – and offer some caveats as the economy

moves forward.

The European new car market

The automotive industry is global and one needs to review at least the European new

car situation and the way it is currently influencing the UK market to understand the

present market situation.

The EU, particularly the Eurozone, has been hit by a double whammy. Firstly, the

banking crisis destabilised the banking system which, in turn, exposed the underlying

weakness of the Eurozone. Secondly, some states have been borrowing against the

strength of the Euro and their economic performance has failed to support the

borrowings – hence the current retrenchment.

This long-term economic uncertainty has led to a relative implosion in European new

car market volumes. The concern is the steep fall in new car sales over the past five

years (see page 49) which is continuing in 2013, and forecasters predict it will be

2014 or later before any meaningful recovery starts.

European new car registrations; 2012 - 2013

1,00

1

923

1,50

0

1,06

3

1,15

0

1,25

3

970

723

1,13

3

998

965

838

918

829

1347

1081

1083

1175

.4

-6.3-8.5-7.2

-9.3

-6.7 -6.4

-1.9

-7.7-8.1

-11.1

-4.9

-10.1

-15.8

-8.3-10.2-10.2

1.7

-5.8

0

100

200

300

400

500

600

700

800

900

1000

1100

1200

1300

1400

1500

1600

Jan-12

Feb Mar Apl May Jun Jul Aug Sep Oct Nov Dec Jan-13

Feb Mar Apl May June

1,00

0 un

its

-20

-15

-10

-5

0

5

10

15

20

% inc/d

ec previous year

Source: ACEA

The Eurozone has been hit by a double-whammy

Purple Match or Grey Mist?


The chart on the previous page shows EU new car registrations recorded a year on

year drop in 17 of the 18 months leading up to June 2013, and are sitting at a 20-

year-low for Western Europe at the end of the first six months in 2013.

Any such medium or longer-term change in the European new car market triggers

two immediate concerns for motor manufacturers;

Review of markets which may offer ongoing sales opportunities in the short and

medium term.

Strategic review of manufacturing capacity and a plan to balance supply, demand

and production facilities rationalisation.

In the former, the United Kingdom has been identified as the market offering short-

term sales opportunity, even if substantial direct and indirect incentives are required

to attract higher numbers of new car buyers.

The latter strategy, which involves plant and model rationalisation has started to

emerge, albeit manufacturers have to contend with EU legislation and national politics

which restricts some of their more radical proposals.

The UK new car market

UK new car sales have also suffered from recession and economic pressures, sitting

around the two million mark for the past five years (see page 8). In complete contrast

to the scene across most of Europe, UK new car volumes are now showing clear

signs of recovery, with a marked rise for 15 out of the past 18 months.

UK new car registrations; 2012 - 2013

128.

9

61.9

372.

8

142.

3

162.

3

189.

5

143.

9

59.4

359.

6

151.

3

149.

2

123.

6

143.

6

66.7

394.

6

163.

4

180.

1

214.

9

5.9

14.813.4

11.0

11.3

7.9

11.5

3.7

12.1

8.2

0.1

9.3

3.53.3

1.8

-2.5

0.0

7.9

0

50

100

150

200

250

300

350

400

Jan12

Feb Mar Apl May Jun Jul Aug Sep Oct Nov Dec Jan13

Feb Mar Apl May June

1,0

00

uni

ts

-10.0

-7.5

-5.0

-2.5

0.0

2.5

5.0

7.5

10.0

12.5

15.0

% inc/d

ec previo

us year

Source: SMMT

UK new car volumes are now showing clear signs of recovery



The inevitable consequence of prolonged, low new car volumes is a rise in the

average age of cars in the car parc, which has climbed steeply over the past eight

years – see page 19.

UK car parc, average age of cars; 2000 - 2015

30.4 30.5 30.7 30.9 31.130.327.2 29.429.028.527.8 29.8 29.9 30.2 30.3 30.1

7.817.69

7.257.06

6.736.706.69

6.887.01

6.78

7.11

6.796.93

7.557.597.44

10.0

15.0

20.0

25.0

30.0

35.0

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Mill

ions

5.00

5.50

6.00

6.50

7.00

7.50

8.00

Averag

e age years



This trend will continue until significantly higher new car volumes enter the parc for

several years to offset the impact of the ageing record-high new car volumes of the

early 2000s.

UK new car registrations; 2008/2012 versus 2004/2008 (0-5 year car parcs)

-400,000 -300,000 -200,000 -100,000 0 100,000 200,000

Volvo

Volkswagen

Vauxhall

Toyota

Suzuki

Skoda

SEAT

Renault

Peugeot

Nissan

MINI

Mercedes

Mazda

Land Rover

Kia

Jaguar

Hyundai

Honda

Ford

Fiat

Citroen

Chevrolet

BMW

Audi

Alfa Romeo




One further strategic issue regarding the UK car parc is the way that some

franchises' parc has changed more than others – depending on how their new car

sales were affected by recession, a flagging economy and the impact of the

2009/2010 scrappage scheme which boosted the sale of smaller, cheaper cars.

The chart on the previous page shows how volume brands' 0-5 year car parcs have

contracted since 2008 with the steep fall in new car volumes – and retailers face

fewer used cars of this age reaching the used car market.

UK car market developments

Although UK new car sales have been encouraging for some months, and forecasts

continue to be more optimistic, the economy is still 'not out of the woods', inflation is

rising and unemployment refuses to register a marked decline.

This apparent contradiction in the UK new car market versus economic conditions,

and the European experience might be tracked down to a number of factors;

A considerable number of motorists have received windfall cash from PPI and

other mis-selling programmes. While exact sums are difficult to establish, it is

considered to be well in excess of £8 billion to date – with much more to come.

Recipients can use such a windfall to pay off credit cards or, if there is sufficient,

‘change their car’. This may be a new car if the price and/or finance deal is right,

or a younger used car.

Historically low interest rates on savings, invariably negative rates when inflation

is taken into account, have tempted some consumers to spend their savings –

and aggressively attractive car and finance deals sometimes prove irresistible.

Given the recent resurgence in mortgage availability and signs of a developing

housing market, one must ask if this trend will continue.

New car and pre-registration car prices are astoundingly attractive with big

discounts from sticker prices – as manufacturers seek sales to help keep plants

running as a result of the poor markets in Europe.

Fuel prices continue to escalate and, with a weakening pound, may not fall

quickly. As new cars generally offer radically improved fuel consumption versus

older models, many car owners may decide to change to a new, often smaller

car.

Private motorists may well be tempted to replace their ageing cars ‘before they

start giving problems’ – entering the market for a new or younger used car.

The economy is still 'not out of the woods'



Used car prices have been relatively strong for quite some time, encouraging

many motorists to replace their car if they can negotiate a good enough part-

exchange price.

The issues noted above apply principally to private buyers; as business car users and

fleet operators generally have longer-term replacement policies.

While the new car market has enjoyed a 'purple patch' for the past few months, how

long this will last is a matter for conjecture.

New and used car market relationships

Although the recovery of the new car market tends to be one that attracts headline

writers, the largely ignored used car market is significantly bigger in volume and value

terms.

Indeed, the used car volume is more than three times the new car volume. While

many older cars aren't sold by used car retailers, nearly three out of five used cars

pass through dealers' hands.

Market volumes new vs. used; 2000 – 2012

6.77.1

8.69.1

2.01.92.02.42.32.42.62.62.62.5

2.2 2.1 2.0

6.67.1

7.47.36.8

7.2

6.66.46.8 6.7

6.3

8.6

9.48.99.0

9.8

9.29.7 9.7

9.5

8.88.3

1

2

3

4

5

6

7

8

9

10

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Mill

ions

New Used Total

Source: SMMT/BMRB

The following chart illustrates how the gap between used car and new car market

value has widened since the onset of recession – in the region of £6 billion for the

past four years in favour of the used car sector.

The used car market is significantly bigger in volume and value terms



New and used car market value; 2000 - 2012

32.3

29.028.7

32.4

29.8

27.5

33.532.4

28.028.1

33.0

32.4

32.2

38.1

35.735.0

27.3 25.4

28.1

32.0

30.0

32.3

33.933.3

32.4

34.2

24

26

28

30

32

34

36

38

40

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

£ b

illio

n

New Used

Source: BMRN

Used car volume and value

The relative shortage of younger used cars coming to market has been reflected in a

number of ways;

The remarketing industry has reported rising average mileages on cars sold,

although that trend appears to be reversing.

Quality of used cars; regular anecdotal reports of used vehicles coming to market

being in poorer condition than has been the case.

Uncertain used car supply is making dealers rethink used vehicle acquisition, in

many cases changing the focus of the used car sales manager's role to ensure

sustainable used car supply.

The professional used car retailer

Consider some of the issues that used car retailers may need to take on board;

Used car sourcing; given that good quality, younger used cars are likely to remain

in short supply for the foreseeable future, it is vital dealers secure sustainable

supply routes;

Ensure there are strong links with the manufacturers to source nearly-new and

delivery mileage vehicles.

Uncertain used car supply is making dealers rethink used vehicle acquisition



Determine a clear policy with regard to trade-ins – what will be retailed and what will

be traded.

Agree a sensible internal strategy for equitable sharing of costs and profit on

refurbishing used cars.

Develop a clear policy for auctions, electronic and physical, and decide how they can

be best exploited.

Create a clear plan regarding the inventory and sales profile; what will be the

target markets; what stock will be required; pricing strategy and who will have

overall responsibility for managing and monitoring the policy.

Establish appropriate finance sources for used car buyers so they have access to

alternative sources of funding should one be unwilling to accept their initial

proposition.

Review used vehicle presentation and trading strategies for cars not selling, and

guidelines regard pricing or moving to another site or rapid disposal if necessary.

Establish a profile of historic and targeted used car buyers and their expectations

– and stock against that profile.

Careful analysis of the used car sector is likely to reveal a market parallel to the new

car sector in many ways but, with the added dimension of heterogeneous quality,

age, mileage and condition. It is a more complex market than the new car sector.

Future profitability?

The grey mists of used car operations, which once encouraged some car retailers to

restrict their involvement in this sector, should have long gone.

For the foreseeable future, it is likely the car market will be heavily influenced by the

used car sector – albeit the new car private sector is in a bit of a 'purple patch' at

this point in time.

Successful, profit-oriented franchised dealers will be well advised to strike a clear

balance between new and used car sales. And, in future, may well revert to historical

values of seeking value-added at every opportunity, taking profit a little but often

rather than purely from the initial sale of the vehicle.

Establish finance sources for used car buyers


Used LCVs; Where Would We be Without Them?


Politicians may forget to their peril that economic recovery starts at the bottom.

Economics and business development are not a grand collection of statistics and

trends. Rather, they are about what happens with individuals starting new ventures,

small businesses having the confidence to seek more work – and others willing to buy

their products and services. To accomplish this, SMEs often need mobility, for

themselves, for their tools, for materials. Nothing too grand to start with, but they

need to get started. Only then, will the economic juggernaut start to roll.

LCVs can be a critical lubricant to start that whole system rolling. Not new LCVs, they

are too expensive, but a used LCV with its age, condition and mileage determining

the price.

While small businesses and new start-ups may complain about the lack of capital and

access to funds, perhaps the critical issue is really ‘what are these funds for?’ In

many instances, the requirement is for ‘wheels’ – as likely as not a used LCV.

It's perhaps an exaggeration, but the supply of used LCVs of different ages and

prices can be such an important element in economic recovery.

Economic growth and demand for used LCVs

Small businesses, as a group, are able to respond quickly to changes in demand

which, in turn, knocks through to their supply chain – including the supply of used

LCVs. It is, therefore, interesting to watch changes in the overall economy and the

way this affects LCV demand.

Start-up small businesses (SMEs) have been a driving force over the past few years.

More than half a million new businesses were created in the past year alone. Of

course, not all of these need LCVs or any type of vehicles. However, the CBI has

forecast a steady growth in the services sector, one that may well require additional

LCVs.

The industries that may well be expected to grow in the second half of 2013 and

during 2014 will include housing and house building, driven by government

underwriting of mortgages – with trades that form an integral part of this sector –

plumbing, electrics, bricklaying and carpentry, typically SMEs needing to provide

mobility for their workers. And, who wants to take a new LCV on to a building site?

There is invariably a challenge for SMEs to source used LCVs very quickly once

business opportunities open up.

SMEs need mobility for themselves, for their tools, for materials



Used LCV supply.

Used LCV supply is ultimately driven by operators changing their once-new vehicles.

Given a downturn in the economy the conventional buyers of new LCVs will seek to

cut their costs, which may mean retaining existing LCVs, reducing mileage and

perhaps cutting service. The overall impact will be for new LCV buyers to acquire

fewer units.

UK new LCV sales rose steeply to a record high of 338,000 in 2007 – plummeting by

150,000 units to 186,000 two years later in the face of recession.

UK new LCV registrations; 2000 - 2015

239

254266

304

330323 327

338

289

186

223

260

275265

240

262

100

150

200

250

300

350

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Tho

usan

ds

of

units


Following a recovery in 2010 and 2011, LCV volumes dropped back once more to

240,000 units last year. Although LCV volumes have grown 11.2% year on year for

the first six months of 2013, it will be several years before they reach anything like

pre-recession levels.

While the latest SMMT forecasts see the new LCV market reaching 265,000 units in

2014, there could yet be pressures brought on the market through extreme pricing

action and attractive finance deals – driven by weak European economies and the

collapse of new LCV sales in Europe as shown overleaf.

Such a strategy appears to be already in place in the new car market. However, a

price-driven sales programme for LCVs may not be as effective, as major LCV

operators already enjoy exceptional price deals and manufacturers may be reluctant

to offer such largesse to SMEs or even mid-size firms.

It will be several years before they reach anything like pre-recession levels



European new LCV registrations; 2003 - 2015

1.83

2.012.07 2.09

2.22

1.41

1.54

1.66

1.54

1.42

1.501.55

1.99

1.00

1.25

1.50

1.75

2.00

2.25

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Mili

on u

nits

Source: ACEA/Buckingham

The chart shows European new LCV volumes over the past decade and

Buckingham's forecast for the following three years. The clear message is the way

the market crashed in 2009 and has failed to recuperate since. European LCV sales

have continued to fall in 2013, down by 5.8% year on year at the end of June, putting

an end to any hopes of a marked recovery any time soon.

While major players in the sector may extend replacement cycles often supported by

revised preventative maintenance programmes, SMEs and used LCV buyers will

generally make do and mend. Overall, as is born out by auctions, used LCVs,

particularly post-second users, are coming to market with higher mileage, greater age

and commonly lower quality.

UK new LCV registrations; 2000 – 2015 and supply gap

239

254266

304

330323 327

338

289

186

223

260

275265

240

262

100

150

200

250

300

350

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Tho

usan

ds

of

units

Supply Gap

Source: Eurostat



A ‘used LCV supply gap’ has opened up over the past few years and, assuming that

historically supply and demand were in broad equilibrium, there is a potential

shortage of younger used LCVs in the region 300,000 units – which will take several

years to flush through the system.

While the exact size of the LCV used supply gap may be open to discussion, the fact

it exists and cannot be filled quickly is significant. There is no way used vehicles can

be conjured up overnight. Such a gap may be of purely academic interest in a

continuing period of economic recession or marginal growth, as operators may ‘make

do and mend’ with their existing vehicles.

The concern arises when the economy starts to recover more strongly and there is an

upturn in demand for used LCVs – units that will not be readily available. The problem

could also be accentuated by recovery in Europe or plant closures restricting the free

supply of new units.

Role of the LCV dealer

Conventionally, the role of used LCV dealers has been to buy, refurbish and sell used

LCVs at a profit. Given the current status of the used LCV market, this role is

changing, albeit subtly, and their role becomes more proactive in a period of potential

used LCV famine.

The first issue is the shortage of younger used LCVs. Such a big shortfall changes

LCV dealers' role to become a 'true trader' balancing supply and demand.

Economic recovery raises two important questions for used LCV retailers;

What is my true customer base and how might it develop with economic

recovery?

How many used LCVs will I need to source, of what type, age, mileage and price

– and when?

The luxury of ‘supply and demand equilibrium’ may disappear to be replaced by one

of more professional and sustainable sourcing. For dealers to have to source short-

term purely from the market could be a recipe for adversity?

Developing used LCV sourcing

With any free market supply potentially very tight, it’s fair to assume prices at auction

or trade-in will rise which is likely to be reflected in sales prices. Equally, there may

be a need for vehicle refurbishment if units are older, have higher mileage or have not

been maintained to an acceptable standard during their working life.

The first issue is the shortage of younger used LCVs



As with used cars, a new or strengthened function may be needed in some

circumstances – a 'Used LCV Sourcing Specialist'. Such a position will have a far

wider role than merely ‘acquiring nice used LCVs’. It will need to establish sustainable

sources, ensure quality is fitting, know how many units are required – and when.

A broad range of used LCV sources might be tapped and exploited – such as;

Trade-in units against replacement

Direct acquisition from volume sellers

Dealer to dealer exchange

Acquire through closed/open auctions

Buy through electronic auctions

Manufacturer-sourced demonstrators, pre-registration units

Dealer demonstrators, rental stocks

While the list is high level, it gives a broad indication on the sourcing issues to be

resolved by a 'Supply Specialist'. He or she may also be involved in negotiating used

LCV supply deals with major volume sellers as well as arranging refurbishment

programmes and costing exercises.

He or she may also need to arrange links and participate in online auctions to

broaden the used LCV supply chain to sustain an adequate supply.

Used LCV market profile

LCV dealers may also have the opportunity or, indeed, the need to deal in older units.

The following two charts show how the LCV parc has aged rapidly due to five years

of desperately low new LCV volumes. Historically, franchised dealers focused largely

on younger used LCVs.

The first chart shows how the average age of LCVs on the country's roads climbed

from 6.87 years in 2007 to 7.4 years in 2012 as many fewer new LCVs entered the

supply chain, and will continue to rise until new LCV volumes approach 300,000 units

once more.

Given the fast-ageing parc and willingness or necessity of customers to accept older

units, these vehicles might provide a important opportunity.

Negotiating used LCV supply deals with major volume sellers



UK LCV parc, average age of vehicles; 2007 - 2015

3.39 3.513.473.453.42 3.52 3.55 3.58 3.63

7.587.406.696.837.01 7.086.87

7.79 8.01

1.00

1.50

2.00

2.50

3.00

3.50

4.00

2007

2008

2009

2010

2011

2012

2013

2014

2015

Mill

ions

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Average age


a


The chart below shows just how much the LCV parc age mix has changed since

2007– and will continue to do so over the next two or three years.

UK LCV parc by age segment; 2000 - 2015

0

500

1000

1500

2000

2500

3000

3500

4000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Tho

usan

d u

nits

0-2 3-5 6-8 9 plus


Economic recovery will put a strain on the used LCV sector but, even with rapid

economic improvement, the market will not change significantly for several years to

come.



Short and medium-term supply resolution

While there may be a dearth of younger used LCVs entering the market in the short

term, the extent of any scarcity will undoubtedly be linked to the speed of economic

recovery – the faster the recovery the bigger the shortage.

A number of short or medium-term actions might be considered;

Daily rental development; extended LCV rental services to make vehicles

available. However, the cost of these could mean they would be relatively

expensive for SMEs and would need to be hired on a daily or weekly basis. From

SMEs' point of view, this may mean more disciplined business management and

timing. Equally important from rental companies' point of view, perhaps retaining

vehicles longer or having used LCVs on fleet may allow them to offer lower-priced

rental.

LCV micro rental; the short-term rental of LCVs may be an option during a

period of recovery, when the vehicle may be hired for an hour or two when

required, thus offering the opportunity for more than one user to hire the vehicle

during the working day.

Vehicle sharing; may be possible between businesses with partners having a

vehicle for say one or two days a week, then passing it on to another member of

the syndicate. While there may be administration and cost-sharing issues to be

resolved, it could be practical in some circumstances.

LCV manufacturer supply, f inance and pricing; given the extraordinary low

demand for new LCVs across Europe, it may be reasonable to expect

manufacturers to promote LCVs harder in the UK market. As such, attractive,

tailored finance deals may be necessary.

It could become critical

The role of used LCVs in a period of economic recovery is an area that has not been

widely explored. However, given a supply gap of some 300,000 younger units, it may

become a crucial factor, providing LCV retailers with an opportunity to establish a

strong position and build a reputation for professionalism and profitability.

So far, the paucity of used LCVs has been a nuisance rather than a serious problem

but, once genuine economic recovery starts, it could very well become critical.

The short-term rental of LCVs may be an option during a period of recovery



BCA is Europe’s largest vehicle remarketing company with 19 UK remarketing

centres and a dedicated administrative hub and data centre, plus a further 26

Mainland European facilities. BCA employs over 2,100 well-trained and highly

motivated staff delivering a wide range of services to buyers and sellers of used

vehicles.

BCA sells around 600,000 vehicles annually in the UK, with a further 200,000 sold in

Europe through a variety of physical and online channels.

BCA – Growth and innovation

The changing shape of the remarketing and automotive markets is delivering new

challenges and opportunities and BCA has delivered a wealth of initiatives to make it

easier for our customers to buy and sell more vehicles.

In the physical and online remarketing arenas, BCA is investing to deliver a

comprehensive service. Recent announcements have included the acquisition of We

Buy Any Car, ensuring the BCA market place remains the largest, most effective and

efficient, delivering residual value performance for our vendors and supplying a good

stock mix for our buyers. BCA also acquired nkl automotive ltd, the vehicle logistics

specialists based in Goole, Yorkshire, enhancing the range of services we offer our

customers with additional storage and refurbishment services in the UK.

New developments announced for 2013 include a Buyer Funding facility, a new Video

Appraisal service and an all-new online sales initiative that will deliver a range of

buying and selling opportunities.

BCA has its finger on the pulse of the industry

BCA is leading the field in the use of business intelligence data and remarketing

analytics to help our customers buy and sell vehicles more efficiently. This includes

looking at a wider range of data to inform reserve price setting, such as daily,

condition adjusted vehicle valuations, vehicle demand data and utilising consumer

data such as retail market pricing and demand information.

BCA also analyses data around the benefits of vehicle preparation, mechanical

checks, vehicle movements and other activities in the remarketing process.

Combined with other BCA information, such as inspection costs, appraisal images/

grades, number of days in stock, Auction View interest and performance/market data

of similar vehicles, all inform our customers to make the right remarketing decisions.



This data is used to plan sales activity from the most appropriate sales channel

through to a realistic pricing strategy. It is also used to ensure that the right buyers

are aware of the vehicles and attending the sales, physically or online. All of this will

help both buyers and sellers achieve their objectives, with BCA providing value in

between.

BCA sets the pace for online sales

The use of Internet channels to remarket used vehicles is now so well established

that it is hard to imagine how we ever got by without online bidders. In the 13 years

since BCA introduced the Live Online concept to the UK market, the annual volume

bought by BCA online bidders has gone from a few dozen manufacturer cars to

round 150,000 plus units annually and growing.

Our customers tell us they want to buy and sell used vehicles online 24/7, 365 days a

year. To gain a competitive edge BCA offers a choice of online routes to market –

Live Online, Bid Now, Buy Now and e-Auction– and vehicles can be Offsite or Onsite

when they are offered for sale.

Our sales are supported with a sophisticated logistics operation, accounting for

around 850,000 collections and deliveries and 120,000 end-of-life inspections in the

UK alone, while 732,000 vehicles are pre-sale prepared using a range of specialist

services.

The critical factor for online success is to have the tools and processes that make

buyers feel as comfortable buying via their laptop or mobile device as they do seeing

the vehicle being driven through an auction hall. Quality of information and objectivity

is key to this.

BCA’s online video appraisals have met with positive buyer feedback, and that

technology will have an increasing importance in the remarketing sector to meet the

needs of online buyers.

Clever technology

In today’s demanding environment, it is important to be ‘easy to do business with’

and BCA does much more than sell used vehicles. We offer a range of bespoke

outsourced services that go much further.

These include managing all the remarketing for volume sellers as a business partner,

managing upstream Affinity Sales and Driver Sales, running manufacturer Stock

Market and Fleet Repatriation Services, delivering full service de-fleet management,

operating as a Pan-European remarketing partner delivering a structured sales

programme across multiple markets, running Offsite Sales Programmes for a range of

vendors and handling all ‘end of life’ vehicle movements as a Logistics Partner.



BCA’s Inventory Management system (IMS) gives the seller complete control over the

remarketing process and can include document management, logistics management

including inspection and collection, storage and refurbishment, and selling through a

range of high performance online remarketing channels, Tele-sales and physical

auction channels, and multi-point marketing. BCA has also developed a white label e-

sales platform that fully integrates with the Inventory Management system, allowing

vehicles to be sold instantly in a closed environment.

For the dealer sector, the award winning Appraise Value and Sell online tool delivers a

range of business benefits and is being adopted by some of the biggest names in the

industry. Comprising three modular components for used car sellers, it generates

consistent and objective appraisals, powered by BCA Autograde, accurate real-time

valuations – BCA Marketprice – using the UK’s largest used vehicle databank and

Smart Sell – a seamlessly linked remarketing process. Sellers can use just one, two

or all three functions and as a web-based tool the product can be used by any

computer with an Internet connection – from tablet to desktop.

BCA – we’re easy to do business with

BCA is innovative and adaptive to changing market conditions and has listened to its

customers to focus on delivering services that meet their needs, whether they are a

buyer or seller. By constantly measuring customer satisfaction and benchmarking

service levels, BCA works with its customers to deliver effective outcomes in a highly

competitive marketplace.


BCA Network


Statistical Data

This section of the Used Car Market Report includes data taken from the 2013 BMRB

International survey of 4,000 UK car owners, providing an insight into their views and

preferences in buying or owning a used car.

It supplies background information on the Consumer Experience and Regional

sections of the report, and allows readers to draw comparisons with their own views

and experience of the UK used car market.

NB All responses are percentages.

Statistical Data


Q How many cars are in your household?

Total Men Women 17-24 25-34 35-44 45-54 55-64 65+ AB C1 C2 D E

One 44 44 45 34 40 48 37 47 55 43 48 47 43 29

Two 23 24 22 16 23 28 34 28 10 39 23 19 10 3

Three or more 5 5 5 8 3 4 8 6 1 8 5 4 2 1

None 28 28 28 41 34 20 21 19 34 10 23 29 45 67

Scotland North Yorks & Humb

North West

West Mids

East Mids

East Anglia

Wales South West

South East

London

One 37 44 49 43 42 53 33 41 46 44 47

Two 24 29 20 25 29 23 50 25 26 20 7 Three or more 2 1 2 7 5 2 7 9 10 5 3

None 36 26 29 24 24 21 10 25 18 30 43

Q Have you bought a new or used car recently?


Yes, new in 2008 or earlier 3 2 3 - 1 4 2 5 4 4 2 2 2 2

Yes, new in 2009 1 1 1 - 0 2 1 2 2 1 2 1 1 1

Yes, new in 2010 3 4 1 1 2 3 4 4 3 5 2 2 1 1

Yes, new in 2011 3 3 2 1 2 3 3 2 3 4 3 2 2 1

Yes, new in 2012 3 4 3 3 2 4 3 6 2 5 4 2 1 1

Yes, new in 2013 1 1 1 0 1 1 1 3 1 1 2 1 1 1

Yes, used in 2008 or earlier 7 7 7 6 6 8 10 8 6 9 7 7 5 4

Yes, used in 2009 4 4 4 2 3 6 3 7 3 5 4 4 4 1

Yes, used in 2010 5 7 4 2 5 6 10 5 3 9 4 5 4 2

Yes, used in 2011 6 6 7 3 8 8 9 7 4 8 6 8 6 1

Yes, used in 2012 10 10 10 4 16 14 15 7 4 14 11 8 8 5

Yes, used in 2013 4 4 4 3 5 6 5 4 1 5 4 4 3 2

No 52 51 54 76 50 40 41 45 63 36 50 56 65 81


North West

West Mids

East Mids

East Anglia

Wales South West

South East

London

Yes, new in 2008 or earlier 4 2 6 2 1 3 - 3 2 3 2

Yes, new in 2009 3 1 1 1 1 4 2 1 - 1 0

Yes, new in 2010 4 6 3 4 1 2 - 6 2 3 1

Yes, new in 2011 4 3 2 5 5 1 - 3 2 2 1

Yes, new in 2012 4 3 1 4 5 3 - 5 5 3 1

Yes, new in 2013 0 1 0 2 2 1 - - 2 2 -

Yes, used in 2008 or earlier 4 6 10 7 10 11 6 9 10 6 2

Yes, used in 2009 4 6 4 4 4 4 7 4 8 3 1

Yes, used in 2010 5 4 5 3 6 4 4 6 6 8 3

Yes, used in 2011 6 5 6 6 8 5 7 9 11 7 3

Yes, used in 2012 8 16 14 8 10 11 24 11 14 7 5

Yes, used in 2013 3 7 4 3 3 4 7 4 3 5 2

No 53 41 49 54 51 49 42 45 40 51 78

Statistical Data


Q What most strongly influences the type of used car you would consider buying?

Total Men Women 17-24 25-34 35-44 45-54 55-64 65+ AB C1 C2 D E Personal experience of particular make \ model

29 31 26 15 28 32 39 33 22 37 27 25 23 13

Views of friends or family 26 23 28 34 29 25 21 27 19 25 28 23 25 30

Test drive 21 24 18 20 25 23 18 24 16 23 21 24 17 16 Internet shopping, consumer advice sites

14 16 13 21 18 15 12 13 7 16 11 17 14 9

Used car showroom\sites 13 13 13 10 12 10 15 12 21 10 13 17 13 10

Consumer reports \ programmes (e.g. Which?, Watchdog)

10 10 11 8 9 15 12 11 7 17 11 5 6 4

Classified used car websites 10 11 9 15 12 11 13 5 4 8 12 12 11 9

Motoring magazines 8 12 4 5 8 7 9 13 5 8 7 10 8 4

Cars you see on the street 8 7 8 13 6 7 10 7 3 4 9 10 11 7

Franchised \ used car dealer websites

7 7 8 7 7 9 8 8 6 6 9 10 5 5

Advice from the selling franchised \ used car dealer

5 5 6 6 7 3 6 8 3 6 4 5 7 5

Car TV shows 5 7 3 10 5 4 4 6 1 4 4 5 7 5

Car manufacturer adverts 3 4 3 4 2 6 1 4 2 1 4 3 4 6

Social Media (i.e. Facebook, Twitter)

2 2 2 4 4 1 2 - 0 1 1 2 5 3

Other 9 7 10 3 7 10 7 7 19 8 7 11 8 10


North West

West Mids

East Mids

East Anglia

Wales South West

South East

London

Personal experience of particular make \ model

28 34 38 26 34 33 35 26 34 24 17

Views of friends or family 23 24 23 24 29 30 19 25 32 26 24

Test drive 23 21 21 12 24 17 20 9 28 21 28 Internet shopping, consumer advice sites

11 15 14 10 21 14 11 11 13 15 17

Used car showroom\sites 20 18 9 7 12 12 12 15 16 13 12

Consumer reports \ programmes (e.g. Which?, Watchdog)

10 4 14 8 7 13 12 7 17 9 11

Classified used car websites 7 11 17 8 14 13 9 8 10 8 11

Motoring magazines 5 3 8 12 7 8 4 7 8 8 10

Cars you see on the street 3 8 10 8 9 9 9 8 11 7 6

Franchised \ used car dealer websites

11 5 5 7 7 5 7 9 10 7 8

Advice from the selling franchised \ used car dealer

3 9 6 5 8 6 - 9 7 3 6

Car TV shows 9 3 6 4 3 7 - 4 2 5 7

Car manufacturer adverts 5 5 4 2 6 5 - 1 2 2 4

Social Media (i.e. Facebook, Twitter) 1 3 3 1 1 3 - 5 0 2 3

Other 15 6 10 10 4 11 14 14 8 7 5

Statistical Data


Q Which of the following will have a strong influence on the way you search for your car?


Price range 64 65 63 67 66 66 69 64 50 59 63 71 67 59

Brand (e.g. Ford BMW) 39 43 35 36 37 41 40 40 41 42 43 36 30 32

Model (e.g. Fiesta,) 37 38 35 33 39 39 39 37 30 41 36 35 36 29 Location (e.g. miles from home, driving time.) 24 24 23 21 20 25 27 32 16 23 26 21 25 16

Variant (specification level) 17 18 16 13 15 22 18 17 17 19 15 20 14 12

Type of seller 11 11 11 7 10 11 13 10 15 12 11 11 10 9


North West

West Mids

East Mids

East Anglia

Wales South West

South East

London

Price range 64 69 62 56 77 69 61 67 69 60 59

Brand (e.g. Ford BMW) 30 47 37 46 33 41 41 36 40 40 38

Model (e.g. Fiesta,) 37 31 43 34 41 32 32 45 35 36 38 Location (e.g. miles from home, driving time.) 23 23 27 13 30 32 15 26 41 20 14

Variant (specification level) 16 19 17 12 16 14 24 19 21 16 17

Type of seller 14 5 14 9 18 8 6 12 16 7 11

Q What were the crunch factors that affected your decision to buy your latest used car?


Price 41 40 41 48 52 36 40 36 35 32 42 51 42 51

Make/model of vehicle 35 35 34 28 29 26 42 37 46 44 32 29 28 19

Mileage (low) 30 30 30 35 34 32 26 25 33 32 32 22 34 30

Engine size 20 17 23 36 10 26 13 25 20 16 19 24 23 19

Body type 17 17 17 13 9 17 16 25 22 17 18 14 20 9

Age of the vehicle 15 15 15 11 12 13 21 22 10 21 12 15 8 10

Fuel option 14 12 15 9 20 16 9 17 9 13 14 15 15 14

Insurance group 11 9 13 15 14 13 9 12 5 11 11 12 12 14

Specification 9 8 11 16 13 8 6 12 5 11 10 7 11 8

Safety 9 12 6 1 6 10 13 9 9 11 12 3 10 4

Colour 8 7 8 8 10 8 5 10 6 7 6 11 8 6


North West

West Mids

East Mids

East Anglia

Wales South West

South East

London

Price 39 32 33 39 39 45 49 36 43 44 45

Make/model of vehicle 36 55 33 37 21 32 32 25 44 38 16

Mileage (low) 29 6 29 26 41 30 47 25 29 31 37

Engine size 22 7 20 26 27 21 23 18 11 17 34 Body type (e.g. estate or hatchback)

13 26 31 3 16 12 18 24 23 13 11

Age of the vehicle 13 22 20 4 20 20 5 19 20 13 12

Fuel option 21 15 13 15 8 10 16 26 7 15 15

Insurance group 16 10 9 10 15 11 10 16 11 8 15

Specification 11 7 15 10 14 3 4 4 9 10 12

Safety 3 9 17 7 5 4 17 - 16 8 9

Colour 16 12 8 6 9 14 2 6 2 7 6

Statistical Data


Q What influenced your decision to buy your used car from that particular dealer?

Total Men Women 17-24 25-34 35-44 45-54 55-64 65+ AB C1 C2 D E Right car at best possible price

37 37 38 40 58 38 39 34 24 41 34 46 19 15

Got a good deal on the car 30 37 23 52 15 32 28 31 35 28 26 38 30 50

Could trade in my old car 22 18 26 - 20 10 24 33 23 15 26 29 26 19 Dealer reliable and trustworthy

19 23 15 54 27 6 15 26 20 24 16 13 27 9

Local and convenient 17 18 16 67 14 11 14 19 18 19 17 17 11 6 Have bought a used car from them before

16 15 18 22 11 5 19 24 16 19 14 15 13 10

Staff friendly, helpful and professional

15 13 17 51 11 2 10 29 14 19 15 16 - -

Offered a warranty or vehicle had warranty

15 14 16 29 21 6 18 18 10 17 16 19 - -

Wide choice of vehicles 10 9 11 37 10 4 10 12 11 8 12 8 16 -

Good aftersales service 9 7 11 14 12 1 8 14 8 11 9 7 - 6 Easy negotiation, lack of sales pressure

7 7 8 36 12 2 - 10 11 8 6 9 5 -

Recommended by friend 6 7 6 51 10 3 2 7 5 6 9 5 3 -

They had the car\make of car I wanted

5 3 6 16 - 3 7 5 3 4 5 7 - -


North West

West Mids

East Mids

East Anglia

Wales South West

South East

London

Right car at best possible price

30 28 50 27 50 24 29 52 44 40 43

Got a good deal on the car 40 36 34 34 45 40 24 14 22 17 41

Could trade in my old car 46 43 29 4 21 24 24 27 9 13 26 Dealer reliable and trustworthy

24 5 31 7 50 10 26 - 24 16 15

Local and convenient 14 21 10 7 18 19 8 13 34 13 3 Have bought a used car from them before

24 23 6 17 10 8 41 14 13 21 -

Staff friendly, helpful and professional

16 27 16 9 7 20 20 14 14 12 11

Offered a warranty or vehicle had warranty

16 21 22 4 25 16 8 - 23 9 -

Wide choice of vehicles 16 - 9 4 18 17 8 27 7 6 14

Good aftersales service 8 14 24 8 - - 8 14 12 8 - Easy negotiation, lack of sales pressure

5 6 20 4 25 3 8 - 3 7 -

Recommended by friend - 5 - 14 10 9 - 7 4 12 -

They had the car\make of car I wanted

8 8 - - 9 - 10 - 3 8 -

Q What type of car did you last purchase?


Off road/4 x 4 5 6 4 3 6 2 8 6 4 5 8 2 3 8

Saloon 17 17 17 14 10 16 17 18 30 20 13 19 13 18

Estate 8 9 6 - 6 11 8 12 3 8 5 9 8 10

Hatchback 51 53 49 58 55 51 49 47 51 46 51 55 61 53

M.P.V/People carrier 7 5 9 - 11 9 6 5 5 9 6 5 7 -

Sports car/coupe 6 5 6 11 5 5 7 4 3 7 6 5 4 2

Prestige e.g. Jaguar 1 0 1 2 - - - 3 - 1 1 - - -

Micro/City Car 4 1 6 5 4 3 5 2 2 3 5 2 3 6

Other 2 3 1 2 2 2 1 3 1 1 4 1 1 3

Statistical Data


Q What type of car did you last purchase?


North West

West Mids

East Mids

East Anglia

Wales South West

South East

London

Off road/4 x 4 7 10 8 7 3 1 7 1 9 3 3

Saloon 24 12 16 25 12 21 17 22 14 16 10

Estate 7 9 5 8 8 4 1 13 5 11 9

Hatchback 52 48 52 43 66 57 47 43 46 52 54

M.P.V/People carrier 3 3 6 5 3 7 17 7 14 7 -

Sports car/coupe - 15 4 6 7 7 7 8 4 4 6

Prestige e.g. Jaguar - 4 - - - - - - 2 1 -

Micro/City Car 3 - 5 3 1 4 4 6 3 4 6

Other 5 - 3 4 1 - - - 2 0 6

Q Which of these reasons influenced you to buy a used car rather than a new car?


Couldn't afford a new car 37 36 38 43 43 45 40 30 26 30 35 45 40 41

Used better value for money 22 26 19 20 22 28 25 24 17 33 22 21 16 8 Lower depreciation with used cars

16 16 15 11 11 15 22 22 12 25 18 11 7 3

Always buy used cars 10 11 10 4 8 12 14 14 10 12 10 11 10 7

Needed a car quickly 6 6 6 7 9 7 7 3 2 5 6 7 5 3 More choice when buying a used car

3 3 2 3 4 3 2 3 2 3 4 2 2 2


North West

West Mids

East Mids

East Anglia

Wales South West

South East

London

Couldn't afford a new car 33% 27% 31% 28% 37% 49% 32% 40% 35% 41% 46%

Used better value for money 14% 30% 21% 20% 31% 22% 26% 23% 35% 20% 16% Lower depreciation with used cars

17% 23% 15% 10% 22% 17% 18% 14% 31% 11% 7%

Always buy used cars 13% 12% 11% 6% 11% 12% 9% 16% 19% 8% 6%

Needed a car quickly 7% 4% 6% 6% 8% 4% 7% 6% 6% 7% 2% More choice when buying a used car

2% 4% 2% 1% 4% 2% 2% 2% 8% 3% 1%

Q How likely is it you or a member of your family will buy a car in the next year?


Certainly will 5 5 4 8 5 6 6 2 1 6 5 4 5 1

Quite likely 9 10 7 13 11 9 9 6 5 10 9 10 6 4

50:50 chance 10 10 9 14 11 12 10 8 4 10 11 10 9 5

Unlikely 26 27 26 23 28 31 30 29 19 37 24 24 21 15 Certainly not in the next 12 months

20 20 20 20 19 21 22 21 18 17 22 20 22 18

Won't be buying a car in the future

28 26 30 17 23 20 21 32 51 19 25 28 36 55

Don't Know 2 2 3 4 3 1 2 1 3 2 3 2 3 2

Statistical Data


Q How likely is it you or a member of your family will buy a car in the next year?


North West

West Mids

East Mids

East Anglia

Wales South West

South East

London

Certainly will 6 1 6 3 4 3 6 5 4 5 5

Quite likely 6 9 7 8 10 9 11 11 9 10 7

50:50 chance 6 9 9 11 11 9 14 13 10 7 13

Unlikely 24 26 19 26 32 34 13 34 27 26 26 Certainly not in the next 12 months

20 19 26 18 15 17 19 12 25 21 22

Won't be buying a car in the future

35 34 32 30 26 28 32 25 22 27 25

Don't Know 2 1 1 2 1 1 5 - 2 4 3

When you come to buy a car is it most likely to be:


Used car, petrol 42 39 44 47 42 37 40 34 50 36 43 47 41 43

Used car, diesel 26 29 23 19 30 35 27 28 14 28 23 27 27 23

Used car, hybrid 3 4 3 2 5 3 4 1 2 3 5 1 1 4

Used car, alternative fuel 1 1 1 1 1 1 1 1 0 0 1 1 1 - Nearly new (up to 9 months old) used car, petrol

3 3 4 3 3 2 4 4 4 4 3 5 2 2

Nearly new (up to 9 months old) used car, diesel

2 3 2 - 2 4 1 5 1 3 4 1 - --

New car, petrol 6 6 7 4 5 6 5 9 11 9 6 4 6 4

New car, diesel 3 4 2 4 3 3 3 4 3 5 3 1 3 3

New car, hybrid 1 1 1 1 - 1 1 1 1 0 1 1 - -

Don't Know 12 11 13 18 10 6 11 13 13 10 11 11 15 19


North West

West Mids

East Mids

East Anglia

Wales South West

South East

London

Used car, petrol 38 39 40 36 46 55 30 39 42 42 42

Used car, diesel 28 22 25 25 23 20 46 36 31 26 21

Used car, hybrid 1 - 4 3 6 1 - - 2 4 5

Used car, alternative fuel - - 1 3 1 - - 1 1 0 1 Nearly new (up to 9 months old) used car, petrol

2 10 5 - 3 3 - 1 4 4 6

Nearly new (up to 9 months old) used car, diesel

4 5 3 1 3 3 9 - 2 2 -

New car, petrol 7 6 9 10 5 1 5 5 6 7 6

New car, diesel 5 6 1 3 3 1 - 4 3 3 5

New car, hybrid 2 - - 1 - 1 - 2 - - 1

Don't Know 8 13 13 17 11 12 10 11 8 12 13

Q If low or 0% interest (finance) is available would you consider buying a new car instead of a used one next time you change?


Certainly 17 19 16 19 17 18 22 16 11 21 15 18 17 11

Quite likely 23 24 22 27 30 22 25 20 10 21 22 27 20 23

Unlikely 24 24 24 25 21 28 24 20 24 24 27 20 24 19

Certainly not 30 30 30 17 28 29 25 40 47 29 30 29 30 40

Don't know 6 4 8 13 5 3 5 4 8 5 6 5 9 8

Statistical Data


Q If low or 0% interest (finance) is available would you consider buying a new car instead of a used one next time you change?


North West

West Mids

East Mids

East Anglia

Wales South West

South East

London

Certainly 30 13 16 19 20 12 6 19 12 11 29 Quite likely 22 20 24 22 21 23 25 12 21 26 25

Unlikely 19 23 24 18 19 24 9 30 23 34 21

Certainly not 26 39 27 29 38 35 50 36 44 23 16

Don't know 4 6 9 12 3 6 9 2 - 6 8

Q If you buy a car in the future, where do you think you will get it from?

Total Men Women 17-24 25-34 35-44 45-54 55-64 65+ AB C1 C2 D E Franchised dealer (part exchange)

27 27 28 13 18 29 35 41 28 33 28 27 20 9

Private sale 23 26 20 34 30 27 20 19 9 19 22 23 34 31

Franchised dealer (buy direct) 21 23 19 16 20 21 20 20 29 24 19 25 15 8 Independent used vehicle dealer (buy direct)

10 10 10 18 13 12 6 8 3 5 10 11 12 24

Family or friend 9 10 9 8 12 10 10 7 8 9 9 9 12 8

Internet trader 9 11 8 20 10 10 9 4 2 7 11 11 11 7 Independent used vehicle dealer (part exchange)

7 8 6 7 6 10 11 3 3 9 6 9 5 3

Car supermarket 7 7 6 3 4 11 9 7 5 7 9 6 4 4

Auction 5 6 3 9 6 5 4 3 0 3 5 5 6 6

Other 4 3 5 4 3 6 3 2 10 3 4 5 6 6

Don't Know 10 8 12 12 12 7 7 9 12 8 11 8 9 17


North West

West Mids

East Mids

East Anglia

Wales South West

South East

London

Franchised dealer (part exchange)

36 42 25 13 32 32 26 23 40 25 18

Private sale 22 10 30 23 19 20 31 40 18 23 26

Franchised dealer (buy direct) 28 11 17 26 15 14 14 16 19 24 26 Independent used vehicle dealer (buy direct)

5 2 13 6 10 8 3 14 6 14 16

Family or friend 7 6 8 11 13 11 14 8 10 6 12

Internet trader 2 6 13 14 10 13 7 12 4 9 12 Independent used vehicle dealer (part exchange)

2 - 11 7 11 6 8 2 4 9 9

Car supermarket 5 9 6 9 9 14 3 3 7 7 1

Auction 2 1 10 8 4 3 6 9 3 4 4

Other 5 7 3 6 3 7 - 5 3 5 4

Don't Know 7 12 12 11 8 8 12 5 8 10 12

Q Overall, how satisfied are you with your used car?


Very satisfied 71 70 72 59 62 73 68 84 80 78 69 67 67 57

Quite satisfied 24 25 23 31 30 22 30 14 14 19 24 29 26 32 Neither satisfied nor dissatisfied

3 4 2 8 6 2 1 1 4 2 3 3 5 -

Quite dissatisfied 2 1 2 2 2 1 2 0 3 1 3 - 2 8

Very dissatisfied 0 0 1 -- -- 2 -- -- 0 1 -- 1 -- 1

Statistical Data


Q Overall, how satisfied are you with your used car?


North West

West Mids

East Mids

East Anglia

Wales South West

South East

London

Very satisfied 67 81 90 76 69 67 70 72 75 62 53

Quite satisfied 25 11 9 17 30 29 20 26 23 31 39 Neither satisfied nor dissatisfied

6 5 1 3 - 2 6 2 - 3 8

Quite dissatisfied 1 2 1 4 1 2 - - 2 2 -

Very dissatisfied 1 -- -- -- -- -- 4 -- -- 1 --

Q If economic recovery remains slows, what might you look for when you change car?

Total Men Women 17-24 25-34 35-44 45-54 55-64 65+ AB C1 C2 D E Car with better fuel consumption

29 31 26 19 29 32 35 32 23 32 30 26 24 23

Car with lower road tax 22 21 22 18 27 18 27 23 17 23 22 21 20 19

Best possible purchase price 15 15 15 12 15 17 16 14 14 17 11 18 14 12

Smaller car 14 14 13 14 10 15 16 15 12 11 12 17 17 21 Car with lower maintenance costs

14 14 15 17 14 14 18 17 7 16 12 14 17 10

Car with lower CO2 10 10 10 9 11 13 8 12 8 11 11 9 8 8

Same type of car 10 9 11 4 6 10 13 12 13 9 11 11 11 13

Used car instead of new car 9 10 8 8 7 10 9 11 8 11 8 9 7 8

Best possible part--exchange price

9 9 10 5 6 10 10 14 9 9 10 10 9 8

Car with lower depreciation 5 6 5 7 8 4 6 7 2 6 6 6 3 6

Low interest finance 5 5 4 4 7 7 4 5 2 5 5 6 3 1

Lower specification\ performing car

3 4 3 3 3 3 7 2 1 3 5 3 1 7

Bigger car 3 4 3 7 7 4 1 1 1 3 3 4 4 1

Car finance loan 2 2 2 6 4 1 2 1 1 3 2 2 3 -

New car instead of used car 2 3 1 3 2 2 2 1 2 2 2 2 1 1


North West

West Mids

East Mids

East Anglia

Wales South West

South East

London

Car with better fuel consumption

27 43 34 19 30 24 22 37 34 31 21

Car with lower road tax 32 30 22 11 22 18 8 27 25 25 17

Best possible purchase price 15 16 14 10 18 20 10 14 21 14 11

Smaller car 12 14 12 10 12 19 10 21 20 12 18 Car with lower maintenance costs

11 15 14 18 9 20 11 11 9 14 17

Car with lower CO2 8 16 7 9 17 9 11 16 10 11 5

Same type of car 11 7 8 10 12 6 8 17 10 9 13

Used car instead of new car 10 11 9 4 13 14 11 7 8 10 7 Best possible part--exchange price

12 8 12 4 15 13 - 9 11 10 2

Car with lower depreciation 8 1 11 1 8 1 - 10 6 6 7

Low interest finance 5 6 2 6 3 4 - 5 5 4 12 Lower specification\ performing car

4 5 2 3 - 3 - 4 2 4 8

Bigger car 3 - 2 4 5 4 2 4 2 2 8

Car finance loan 4 1 - 1 - - 1 6 2 4 4

New car instead of used car 2 1 1 5 1 - - 3 2 1 4

Statistical Data


Q Would you consider selling your car directly for cash from any of the following channels?

Auto Trader 18 19 16 26 23 25 19 11 5 20 16 16 20 9

Ebay 11 12 10 18 16 17 7 9 4 11 11 13 12 7 Local newspaper advert\website

9 9 8 5 7 10 7 13 8 10 9 6 8 10

Used Car Trader 8 9 7 10 12 12 8 5 5 9 9 6 10 5

Small local garage 8 9 7 6 8 9 11 6 9 9 8 8 6 10

Franchised dealer 7 7 6 6 11 7 5 5 7 9 5 5 7 6 webuyanycar.com or similar service

4 4 4 5 3 6 3 3 3 3 4 3 4 3


3 4 3 1 3 5 5 1 3 4 4 2 2 2

Used car supermarket 3 3 2 4 3 3 5 1 1 3 2 4 2 2

Auction 3 4 1 3 2 3 4 2 1 2 2 4 2 5

National newspaper advert\website

2 2 2 3 2 3 4 0 2 2 3 4 0 1

No 48 46 50 38 43 37 55 57 54 45 51 48 45 51

Don't know 7 5 8 15 4 7 2 5 9 5 6 10 8 3


North West

West Mids

East Mids

East Anglia

Wales South West

South East

London

Auto Trader 18 20 19 19 20 10 13 13 17 15 26

Ebay 14 8 15 7 9 9 8 13 14 9 21 Local newspaper advert\website

12 3 9 3 11 5 13 15 14 8 7

Used Car Trader 8 7 11 6 12 6 4 17 6 9 7

Small local garage 6 10 8 3 4 10 12 9 13 8 10

Franchised dealer 7 7 5 5 9 4 7 0 10 7 9 webuyanycar.com or similar service

6 2 2 2 7 2 2 1 3 2 9


1 2 5 1 3 4 4 6 2 3 5

Used car supermarket - 1 4 2 4 2 2 1 1 2 9

Auction 1 1 3 2 3 6 2 4 2 3 1 National newspaper advert\website

3 1 1 1 2 3 2 3 5 3 1

No 52 65 45 52 40 48 41 51 48 52 33

Don't know 2 2 6 11 5 11 13 6 4 5 10

Q Which, if any, of the following reasons explains why you would consider selling your car for cash?


A better price than trading in the car

32 36 28 29 27 36 38 37 26 32 34 32 34 25

Negotiate a better deal on new/used car

30 29 31 24 32 31 36 32 22 31 28 35 26 24

No longer needed a car 23 21 27 38 21 21 21 17 26 26 26 13 26 26 To realise part of the car's value in cash\part as deposit

16 14 18 10 16 12 21 19 18 18 13 15 20 14

Could not afford to run or maintain car

13 14 12 9 21 13 13 14 6 9 13 18 14 23

Needed cash for household expenses\other reasons

6 5 7 10 8 7 4 4 1 2 8 5 10 10

Using alternative forms of transport instead of a car

3 3 2 1 5 2 - 1 4 5 1 1 2 -

Statistical Data


Q Which of the following reasons explains why you would consider selling your car for cash?


North West

West Mids

East Mids

East Anglia

Wales South West

South East

London

A better price than trading in the car

25 32 43 36 27 32 39 40 26 38 31

Negotiate a better deal on new/used car

24 26 42 31 15 28 38 13 28 34 32

No longer needed a car 26 26 23 22 30 22 12 19 10 30 26 To realise part of the car's value in cash\part as deposit

14 20 10 19 20 17 23 17 11 23 7

Could not afford to run or maintain car

23 12 7 7 10 6 12 9 26 1 19

Needed cash for household expenses\other reasons

10 10 - 8 8 2 4 - 7 - 6

Using alternative forms of transport instead of a car

- - 6 2 - 4 - - 9 1 2

Q Have you taken any steps to substantially reduce your car running costs?


Tyres at correct pressure 21 23 19 11 21 20 25 24 22 22 21 20 22 19

Avoid heavy breaking 15 19 11 11 14 14 16 21 14 17 14 13 14 19

Drive more slowly 15 18 12 8 14 14 16 20 15 16 12 18 15 14

Accelerate less quickly 15 17 12 10 12 13 20 16 15 18 14 13 12 10

More fuel--efficient car 13 15 12 6 16 17 13 17 10 16 13 14 7 9

Nothing\none\no action 12 12 12 16 10 14 14 8 12 14 14 10 9 9

Bought a smaller car 12 11 13 6 8 15 15 13 11 12 11 14 11 8

Lower cost insurance 10 11 9 3 7 11 16 16 7 11 10 10 10 8 Use public transport more frequently

9 8 10 6 7 6 8 10 14 8 9 7 13 14

Switch off air conditioning 9 11 7 3 11 7 12 11 7 10 9 7 9 8

Opted for shorter trips 7 8 6 2 7 5 8 9 8 4 7 9 7 10 Close windows when possible

6 8 5 5 8 4 4 8 7 7 6 5 5 2

Do-it-yourself service 5 7 4 3 6 8 7 4 3 5 4 7 7 7

Lower insurance premium 5 5 5 6 3 5 8 5 3 5 4 5 9 5

Reduced number of cars 4 3 4 2 4 4 3 4 4 4 4 2 4 3


North West

West Mids

East Mids

East Anglia

Wales South West

South East

London

Tyres at correct pressure 31 17 17 21 19 29 15 26 23 21 14

Avoid heavy breaking 14 10 14 14 21 15 3 9 22 16 14

Drive more slowly 14 14 11 12 22 18 13 11 13 19 13

Accelerate less quickly 12 13 17 13 20 18 13 11 17 17 6

More fuel--efficient car 16 20 12 11 10 11 13 20 21 14 4

Nothing\none\no action 15 10 11 11 7 9 22 10 5 13 25

Bought a smaller car 16 10 12 8 18 12 2 18 14 14 5

Lower cost insurance 10 15 7 7 13 10 2 11 12 11 11 Use public transport more frequently

17 5 7 7 8 14 4 3 7 8 15

Switch off air conditioning 7 13 8 8 11 11 8 11 12 8 5

Opted for shorter trips 12 9 6 10 8 10 6 12 3 3 3

Close windows when possible 5 4 6 3 10 7 3 8 7 9 3

Do-it-yourself service 6 4 9 4 7 7 - 10 7 4 3

Lower insurance premium 7 5 4 3 9 4 4 6 8 4 3

Reduced number of cars 4 1 2 3 5 4 - - 6 4 6


Research

The BCA Used Car Market Report is based on information from the Society of Motor

Manufacturers and Traders (SMMT) and many other trade and industry sources in the

UK and across Europe.

In addition, a consumer survey was carried out by BMRB International, based on

interviews with 4,000 respondents, representative of the UK adult population aged 17

years and over. Fieldwork for this research was undertaken in April 2013.

The Used Car Market Report was written and produced for BCA Vehicle Remarketing

by Professor Peter N C Cooke and the automotive group at The Centre for

Automotive Management, University of Buckingham Business School, The University

of Buckingham, Buckingham, MK18 1EG

Copyright BCA 2013

Any part of this report may be reproduced for non-commercial purposes subject to

acknowledgement.

Any organisation wishing to use this report --- in part or in whole --- for commercial

gain, should firstly obtain permission from the Public Relations Department at BCA.

Telephone: +44 (0) 1252 878555. Fax: +44 (0) 1252 743447

Web site: http://www.bca-europe.com

E-mail: [email protected]

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