Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Purchasing of New and Second-hand Cars - UK - October 2009

  • Whereas sales of new cars have fallen by 14% in 2009 from 2.13m to 1.83m, sales of hybrid and electric cars actually increased by 25% from 16,000 to 20,000 cars. Despite the market downturn, 4,000 car buyers have taken advantage of the £2,000 scrappage allowance to buy higher priced hybrid, electric or other alternatively fuelled cars.
  • Even though the financial crisis and the recession has caused new and used car sales combined to fall by 11%, almost one-third of all adults surveyed online say they intend to buy a new or used car over the next twelve months.
  • Twenty-five percent of potential car buyers intend to spend between £7-10,000: 12% of potential used car buyers intend spending £7-10,000 against 13% of potential new car buyers. The extension of the £2,000 scrappage scheme to another 100,000 cars provides an opportunity for car manufacturers and new car dealers to persuade those intending to buy a used car to buy new.
  • More affluent social groups are forecast to rise by between 5-7% by 2014. Amounting to almost 2.8m people, these groups (ABs and C1s) are the principal target market for new car sales: a sizeable opportunity for new car suppliers as the economy emerges from recession.
  • Car manufacturers and dealers have the opportunity to influence the brand purchase decision of almost 80% of all potential car buyers. Just over 20% of future car buyers know with some certainty which make and model they are likely to buy next; just over half have a few makes and models in mind. Slightly under one-quarter have no idea which make and model they will buy.
  • For forty percent of car buyers, the purchase of their next car will largely be an emotional decision where price will be less of a factor.

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Issues in the Market

      • Key issues
        • Definition
          • TGI lifestage definitions
            • Abbreviations
            • Future Opportunities

                • Usage rather ownership
                • Market in Brief

                  • Falling demand for cars
                    • Scrappage scheme lifts sales
                      • New car sales to fall back in 2010
                        • But UK market suffers from a structural problem
                          • The purchase process
                            • Price, fuel economy and reliability is what buyers want
                              • Brand aspirations limited by budget
                                • Rational or emotive brands?
                                • Market Background

                                  • Key points
                                    • New and used car sales fall
                                      • Figure 1: New car registrations and used car sales, 2004-09
                                      • Figure 2: Private new car registrations and used car sales, 2004-09
                                    • Car sales and interest rates
                                      • Figure 3: Total new and used car sales and interest rates, 2001-09
                                    • The importance of finance
                                      • Figure 4: Trend in retail car sales and car finance penetration, 2003-09
                                      • Figure 5: Trend in retail car sales and car finance penetration, 2003-09
                                      • Figure 6: Expected method of payment for next car, new and second-hand, December 2008
                                    • The price overlap between new and used
                                      • Figure 7: Expected cost of car purchase, new and second-hand, December 2008
                                  • Car Market Forecasts

                                      • Value of car sales
                                        • Figure 8: Volume sales of new and used cars, 2004-14
                                        • Figure 9: Total value of car sales, 2004-14
                                      • New car sales
                                        • Figure 10: Value of new car sales, 2004-14
                                      • Used car sales
                                        • Figure 11: Value of used car sales, 2004-14
                                      • Factors used in the forecast
                                        • Government support
                                          • Increasing legislation
                                            • EU legislation – greener cars
                                              • An electric future?
                                                • Smarter and safer cars
                                                  • Multiple car ownership grows
                                                    • Figure 12: Number of cars owned, by individual households, 1985/86-2006
                                                    • Figure 13: Number of cars per household and cars per adult aged 17+, 1985/86-2006
                                                  • Recent purchasing of cars declining
                                                    • Figure 14: When obtained (only car or most recently obtained car), 2004-09
                                                  • Replacement cars dominate but on the decline
                                                    • Figure 15: First, additional or replacement car (intend to buy in the next 12 months), 2005-08
                                                  • Growth in demand for diesel cars
                                                    • Figure 16: New car registrations, by fuel type, 2000-09
                                                  • But low take-up of alternative fuels
                                                  • Broader Market Environment

                                                    • Key points
                                                      • Continued growth in PDI and consumer expenditure
                                                        • Figure 17: GDP, PDI, consumer expenditure and savings, at current prices, 2004-14
                                                      • Population growth in key groups
                                                        • Figure 18: Trends in the age structure of the UK population, by gender, 2004-14
                                                      • Growth among key car users
                                                        • ABC1s on the rise
                                                          • Figure 19: Forecast adult population trends, by socio-economic group, 2004-14
                                                        • Number of families to remain static
                                                          • Figure 20: Forecast adult population trends, by lifestage, 2004-14
                                                        • Smaller households and smaller cars?
                                                          • Figure 21: UK households, by size, 2004-14
                                                        • Consumer spending priorities
                                                          • Figure 22: UK spending priorities for year ahead, 2005-09
                                                      • Car Ownership and Purchase Intentions

                                                        • Key points
                                                          • Car ownership trends – All adults
                                                            • Figure 23: UK car ownership, 2004-09
                                                          • Car purchasing intentions – all adults
                                                            • Figure 24: Car purchasing intentions of all adults (intend to buy in the next 12 months), 2005-08
                                                          • Car purchasing intentions – car owners
                                                            • Figure 25: Car purchase intention, by current car ownership status, June 2009
                                                        • The Purchase Process – Purchase Funnels

                                                          • Key points
                                                            • Emotional or rational decision making?
                                                              • The purchase process
                                                                • Figure 26: The car purchase process – purchase funnels
                                                              • Purchase funnel stages
                                                                • The importance of the role of the dealer and the salesman
                                                                  • An ongoing relationship with a dealer is important
                                                                    • The importance of the role of the internet
                                                                      • Car brand selection
                                                                        • Brand re-evaluation
                                                                          • Brand re-evaluation – a case study
                                                                            • How Alfa Romeo replaced Audi!
                                                                            • Car Purchasing – Which Features and Benefits Matter

                                                                              • Key points
                                                                                  • Figure 27: Most important features sought when buying a car, December 2008
                                                                                • New car buyers emphasise safety, style, design, comfort and quality
                                                                                  • Used car buyers emphasise price, reliability and fuel consumption
                                                                                    • Figure 28: Most important features sought when buying a car, new and second-hand, December 2008
                                                                                  • Male and female differences
                                                                                    • Figure 29: Most important features sought when buying a car, men and women, December 2008
                                                                                  • Influences upon brand selection
                                                                                  • Brand Preferences and Selection

                                                                                    • Key points
                                                                                      • Brand preferences
                                                                                        • Figure 30: Brand preferences of those intending to buy a new or second-hand car, June 2009
                                                                                      • New and second-hand brand preferences
                                                                                        • Figure 31: Brand preferences of those intending to buy, new and second-hand, June 2009
                                                                                        • Figure 32: Brands with a stronger appeal as a new car purchase than as a used car purchase, June 2009
                                                                                        • Figure 33: Brands with a stronger appeal as a used car purchase than as a new car purchase, June 2009
                                                                                    • The Purchase Process – Future Car Buyers

                                                                                      • Key points
                                                                                        • New and used car buyer differences
                                                                                          • Figure 34: Agreement with attitudes towards buying next/first car by whether likely to buy a new or used car, June 2009
                                                                                        • How long to purchase?
                                                                                          • Figure 35: Length of time from considering make and model to final purchase, June 2009
                                                                                        • Attitudes towards car purchase by car brand
                                                                                          • Figure 36: Agreement with attitudes towards buying next/first car, by choice of car brand, June 2009
                                                                                          • Figure 37: Agreement with attitudes towards buying next/first car, by choice of car brand, June 2009
                                                                                        • Brand selection
                                                                                          • Figure 38: Brand selection, by purchase intention, June 2009
                                                                                        • The selection process – brands or models?
                                                                                          • Rational or emotional brand purchasing?
                                                                                            • Figure 39: The car brand selection process
                                                                                          • Rational brands
                                                                                            • Figure 40: Rational purchase car brands, June 2009
                                                                                          • Emotional brands
                                                                                            • Figure 41: Emotional purchase car brands, June 2009
                                                                                          • Rational emotional brands
                                                                                            • Analysis insight
                                                                                              • Lifelong brand loyalty?
                                                                                                • Brands or models?
                                                                                                  • The key is emotive brand benefits – or dealer service
                                                                                                    • The budget is the main determining factor
                                                                                                      • Grand designs
                                                                                                        • Niche models are not enough
                                                                                                          • Building an emotive volume brand
                                                                                                            • Is the purchase process emotive or rational?
                                                                                                            • Appendix

                                                                                                                • Figure 42: Ownership of car, by demographics, June 2009
                                                                                                                • Figure 43: Likely to buy new or used car in next 12 months, by demographics, June 2009
                                                                                                                • Figure 44: Length of purchase process, by demographics, June 2009

                                                                                                            Companies Covered

                                                                                                            • AB Volvo
                                                                                                            • Aldi Stores Ltd (UK & Ireland)
                                                                                                            • Alfa Romeo
                                                                                                            • Asda Group Ltd
                                                                                                            • Audi United Kingdom
                                                                                                            • Automobile Association (AA)
                                                                                                            • Bayerische Motoren Werke AG (BMW)
                                                                                                            • BMW (GB) Ltd
                                                                                                            • British Market Research Bureau (BMRB)
                                                                                                            • British Sky Broadcasting Group plc (BSkyB)
                                                                                                            • Co-operative Group
                                                                                                            • Driver and Vehicle Licensing Agency
                                                                                                            • Driving Standards Agency
                                                                                                            • Fiat Auto
                                                                                                            • Ford Motor Company Limited (UK)
                                                                                                            • Freeview
                                                                                                            • Government Actuary's Department (GAD)
                                                                                                            • Honda Motor Co. Ltd (UK)
                                                                                                            • Hyundai Car (UK) Ltd
                                                                                                            • J. Sainsbury
                                                                                                            • Jaguar Cars Limited
                                                                                                            • Kia Motors UK Ltd
                                                                                                            • Land Rover UK
                                                                                                            • Lidl (UK)
                                                                                                            • Marks & Spencer
                                                                                                            • Mazda Motors UK Ltd
                                                                                                            • Mercedes-Benz UK
                                                                                                            • Mitsubishi Motors Corporation
                                                                                                            • MoneyExpert Ltd
                                                                                                            • Netto Foodstores Ltd
                                                                                                            • Nissan Motor (GB) Ltd
                                                                                                            • Office for National Statistics
                                                                                                            • Peugeot Motor Company Plc
                                                                                                            • Porsche Cars Great Britain Ltd
                                                                                                            • Renault (UK) Ltd
                                                                                                            • Royal Automobile Club
                                                                                                            • Saab Automobile AB
                                                                                                            • Skoda Auto a.s.
                                                                                                            • Society of Motor Manufacturers and Traders
                                                                                                            • Subaru (UK) Ltd
                                                                                                            • Suzuki GB PLC
                                                                                                            • Tesco Plc
                                                                                                            • Toyota (GB) PLC
                                                                                                            • Vauxhall Motors Ltd
                                                                                                            • Virgin Media Ltd
                                                                                                            • Volkswagen AG
                                                                                                            • Volkswagen UK
                                                                                                            • Waitrose
                                                                                                            • Wm Morrison Supermarkets

                                                                                                            Purchasing of New and Second-hand Cars - UK - October 2009

                                                                                                            £1,995.00 (Excl.Tax)