More motorists who can afford it are buying green
The 2008 British Car Auctions (BCA) Used Car Market Report has revealed that economic pressures are forcing UK motorists into greener choices.The 18th annual report, has shown that motorists are being forced into choices that are actually good for the environment. And it is the wealthier sector of the population who appear to be prepared to make the most changes – for their own benefit and the environment.
The Report includes a survey of over 3,000 UK motorists’ attitudes to motoring and car buying, conducted in April 2008. A clear message from the report is that while economics are clearly driving motorists’ choices, these could be having the Government’s desired effect of making motorists ‘think green’ too.
Tim Naylor, spokesman for BCA said: “Our latest Used Car Market Report reflects the downturn in the economy seen in the last twelve months. UK drivers are changing their motoring habits to cope with the tougher economic conditions. And almost as an aside, many of these changes will also benefit the environment. We highlighted a year ago that UK motorists were unlikely to embrace green issues unless their hand was forced. It seems the credit crunch, combined with worries about Vehicle Excise Duty and rising fuel and living costs, has done just that!”
The critical issues that influence the choice of vehicle haven’t changed significantly year on year, with price still coming top of the list at 52% ahead of make/model, mileage and age. However, environmental issues have increased in importance for used car buyers. This year saw 6% of respondents saying environmental considerations were an influencing factor in their most recent car purchase, compared to 4% last year and just 2% in 2006.
High fuel costs continue to concern motorists. When asked what steps they might take to tackle this, nearly 30% said they would attempt to reduce mileage. Those motorists in the C1, D and E socio-economic groups are most likely to reduce their mileage at 35%, 34% and 31% respectively. Only 30% of AB drivers expect to reduce mileage to save money.
The choice of their next vehicle was also considered important in offsetting the high cost of fuel. Half of all respondents said they would consider buying a car that does more miles to the gallon next time. A fifth of all respondents said they would change to a car with lower service and maintenance costs. However, it was AB drivers who were the largest proportion to consider this option at 23% – possibly because they have the option to down-size, unlike those in the lower socio-economic groups who are probably already driving lower cost vehicles.
When questioned on the effect of the Government’s planned changes in vehicle excise duty on the type of car they buy next, 28% of motorists said they would move to a car with a lower CO2 emission rating with, again, the wealthier motorists being the larger proportion to favour this option at 33% compared to just 24% of C2 motorists. Worryingly for motor manufacturers, 16% of respondents said they would consider buying used rather than new next time as a result of the planned changes.
Tim Naylor added: “The new and used vehicle market plays a key role in the UK economy, generating over £66 billion in purchase costs alone last year. What we have seen in recent months is a lack of confidence in consumers to go out and buy. Our survey found that the number of consumers who had bought a car in the last two years dropped to 37% compared to 40% in 2007. 28% think they are likely to buy a car in the next 12 months; compared to 47% who say it’s unlikely or they definitely won’t buy a car in the next year. But the key question for the motor industry now is whether the current economic factors will mean motorists will hold onto their existing cars for longer, as worries about job security, inflation and simply paying the mortgage take hold.”
Statistics Summary
· 6% say environmental considerations were an influencing factor in their most recent car purchase
· 38% of motorists opt to cut their carbon footprint by walking more
· Nearly 30% said they will attempt to reduce mileage to tackle rising fuel costs
· Half of all respondents said they would consider buying a car that does more miles to the gallon
· A fifth of motorists said they would change to a car with lower service and maintenance costs.
· 28% said they would move to a car with a lower CO2 emission rating to cope with proposed changes in VED
· 16% of respondents said they would consider buying used rather than new next time as a result of the planned changes
· 9% said they would go for a vehicle in a lower insurance group to mitigate the effects of the credit crunch
· 7% plan to postpone their next car purchase in the short term, 4% deferring indefinitely
· The number of consumers who had bought a car in the last two years dropped to 37% compared to 40% in 2007.
· 28% think they are likely to buy a car in the next 12 months; compared to 47% who say it’s unlikely or they definitely won’t buy a car in the next year
Simon McBride
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