Table of Contents
Issues in the Market
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- Main issues
- Definition
- Abbreviations
Insights and Opportunities
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- Added incentive
- Family friendly
Market in Brief
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- Key points
- Tough times loom ahead
- Motoring costs mount up…
- …as feel-good factor evaporates
- Dealership numbers continue to fall
- Problems for some…
- …but opportunities for others?
- Two in three have a car they use
- Purchasing intentions holding up… For now
- Dealerships still win on trust
- Role of the internet
- Alternative fuel attracts – but for differing reasons
- Fun for some, stressful for others
Fast Forward Trends
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- Trend 1: No Middleman
- Definition
- What next?
- Trend 2: The Power of One
- Definition
- What next?
Internal Market Environment
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- Key points
- Spending on cars
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- Figure 1: Consumer expenditure on car purchasing, at current and constant 2001 prices, 2003-08
- Motoring costs escalate
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- Figure 2: Consumer expenditure on car purchasing, servicing & repair and motoring expenses, at current prices, 2003-08
- Fuel costs escalate
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- Figure 3: Average annual retail motor fuel prices*, 1998-2007
- Changes to Vehicle Excise Duty
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- Figure 4: Vehicle Excise Duty rates, 2007/08-2010/11
- Charging for road use
- Other schemes face rejection
- Government presses ahead
- Block exemption’s days numbered?
- Original aims and criticisms
- The future
- Colour-coding emissions
- Opportunities online…
- …but pitfalls for the unwary
- Caveat surfer
Broader Market Environment
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- Key points
- PDI and consumer spending continue to rise
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- Figure 5: Trends in personal disposable income and consumer expenditure, 2003-13
- Retail sales growth slows
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- Figure 6: UK: ONS and BRC: Total retail sales year-on-year growth, July 2007-June 2008
- Credit crunch bites
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- Figure 7: Trends in private new car registrations and finance penetration, 2001-07
- Population growth in key groups
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- Figure 8: Trends in the age structure of the UK population, by gender, 2003-13
- More over 65’s? No problem.
- Growth in key car buying ages
- Growth among ABs, C1s…
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- Figure 9: Forecast adult population trends, by socio-economic group, 2003-13
- …but number of families to stand still
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- Figure 10: Forecast adult population trends, by lifestage, 2003-2013
- Smaller households on the rise
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- Figure 11: UK household sizes, 2003-13
- Women, over-50s get mobile
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- Figure 12: Full driving licence holders, by age and gender, 1995/97-2006
- Rise in car ownership
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- Figure 13: Number of cars owned by individual households, 1985/86-2006
- More cars per person
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- Figure 14: Number of cars per household and cars per adult aged 17+, 1985/86-2006
- Broadband penetration grows
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- Figure 15: UK Broadband penetration, 2004-08
Who’s Innovating?
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- Key points
- Is innovation dead?
- Ford’s green showroom
- Autoquake cracking online
- Vroom – retail parks for cars
Market in Context
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- Key points
- Other spending priorities
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- Figure 16: Expenditure priorities, 2007 and 2008
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Market Size and Forecast
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- Key points
- New registrations set to fall in 2008…
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- Figure 17: Total new car registrations, by private, fleet and business sales, 2002-08
- …while used volumes continue downward trend
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- Figure 18: Sales of used cars, by volume, 2003-08
- Value sales
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- Figure 19: Value sales of new and used cars, at current prices, 2003-13
- Figure 20: Value sales of new and used cars, at constant 2008 prices*, 2003-13
- Slow motion
- Used cars move forward
- Factors used in the forecast
Makes and Models and Dealership Numbers
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- Key points
- Dealer distribution network
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- Figure 21: Number of UK franchised dealer outlets, 1998-2007
- Top ten also decline
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- Figure 22: Ten largest UK franchised dealer networks, by marque and number of outlets, 2003-07
- MPVs take pole position
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- Figure 23: New car registrations, by product category, 2003-07
- Ford and Vauxhall the dominant brands
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- Figure 24: Manufacturer shares of new car registrations, 2003-07
Retail Market Shares
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- Key points
- The big get bigger
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- Figure 25: Top ten UK car dealers, by turnover, number of outlets and market share, 2005 and 2007
- Consolidation continues…
- …but what is driving it?
- Corporate activity
Retailer Profiles
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- Pendragon plc
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- Figure 26: Pendragon UK, sales and operating performance, 2003-07
- Inchcape
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- Figure 27: Inchcape UK*, financial performance, 2003-07
- Sytner Group
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- Figure 28: Sytner Group Limited, financial performance, 2003-06
- Arnold Clark
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- Figure 29: Arnold Clark Ltd, financial performance, 2002-06
- Lookers
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- Figure 30: Lookers Plc, financial performance, 2003-07
- Jardine Motors Group
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- Figure 31: Jardine Motors Group UK Ltd, financial performance, 2003-06
- Camden Group Services
- Greenhouse Group
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- Figure 32: Greenhous Group, financial performance, 2006 and 2007
- Vertu Motors
- Factory-owned dealer groups
- Mercedes-Benz Retail
- Ford Retail Group
- Reagroup
- Robins & Day
- Car supermarket operators
- Carcraft
- Car Giant
- Motorpoint
- Online/phone retailers
- Autotrader.co.uk
- eBaymotors.co.uk
- Jamjar.com
- Oneswoop.com
Who Uses Cars?
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- Key points
- Two in three have use of car
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- Figure 33: Presence of car in household that respondent currently drives, June 2008
- Impact of gender and age
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- Figure 34: Consumers stating whether they currently drive a car in their household, by gender and age, June 2008
- Got kids? Get a car
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- Figure 35: Consumers stating whether they currently drive a car in their household, by age of own children in household, June 2008
- Couples outweigh singles
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- Figure 36: Consumers stating whether they currently drive a car in their household, by lifestage, June 2008
- Wealth equals wheels
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- Figure 37: Consumers stating whether they currently drive a car in their household, by socio-economic group, June 2008
The Credit Crunch and Buying Intentions
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- Key points
- Most potential buyers unfazed – for now
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- Figure 38: Impact of credit crunch on car buying plans over next two years, June 2008
- Non-buyers are women, over-55s
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- Figure 39: Consumers stating that they aren’t planning to buy a car in the next two years, by gender and age, June 2008
- Parents of teens not keen on buying
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- Figure 40: Consumers stating that they aren’t planning to buy a car in the next two years, by age of own children in household, June 2008
- Young aspire to their own cars
- ABs key for new car sales
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- Figure 41: Impact of the credit crunch on car buying plans over the next two years, by socio-economic group, June 2008
How People Go About Buying Cars
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- Key points
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- Figure 42: How consumers would consider going about buying a car, June 2008
- Traditional dealers the preferred option
- Internet remains small, but isn’t insignificant
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- Figure 43: How consumers would consider going about buying a car, dealer/web comparisons, June 2008
- Online research, not sales driven right now
- Trusted dealer more important to men, older respondents and ABs
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- Figure 44: Consumers that would go about buying a car by dealing with a dealership they know, by gender, age and socio-economic group, june 2008
- Young, free, and flicking through the papers
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- Figure 45: Consumers that would use the press (eg Autotrader) when looking to buy a car, by detailed demographics, June 2008
- Younger consumers enthuse online – but would they buy?
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- Figure 46: Consumers that would use the web to compare or buy a car directly, by age, June 2008
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- Figure 47: Types of activity undertaken on the internet in the last three months, by age, April 2008
- Buying online, direct from a manufacturer
Factors Influencing Choice of Dealer
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- Key points
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- Figure 48: Factors influencing choice of dealer, June 2008
- The price is right – for a deal
- Internet influences few
- Selling the service
- Age equals experience
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- Figure 49: Consumers stating the importance of previous dealer experience, when deciding which dealership to buy from, by age, June 2008
- ABs, C2s talk the talk
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- Figure 50: Consumers that feel it important that a dealership is happy to negotiate on price, by socio-economic group, June 2008
- Are you being serviced?
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- Figure 51: Consumers that feel good after-sales service and knowledgeable staff are important factors in determining dealership choice, by gender, age and socio-economic group, june 2008
What People Think of Dealerships
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- Key points
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- Figure 52: Attitudes towards car dealerships, June 2008
- Dealers can command a premium among many
- Extended test drives sought
- Dodgy geezer perception remains for some
- Click-and-try beats click-and-buy
- Some just want the best deal
- Key buying groups seek dealer reassurance
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- Figure 53: Selected attitudes towards car dealerships, by gender, age, socio-economic group and age of children in household, June 2008
- Family values
Factors Influencing Car Purchase
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- Key points
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- Figure 54: Environmental factors influencing car purchase, June 2008
- Green issues to the fore – but what’s the motivation?
- Cost of fuel a deterrent
- Mixed views of hybrids
- The affluent look to save money
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- Figure 55: Consumers that agree with the statement ‘I’d buy an environmentally friendly car if it helps me avoid extra taxes/congestion charges’, by gender, age, socio-economic group, gross annual household income and region, June 2008
- Families, third agers look to emissions
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- Figure 56: Consumers that agree with the statement ‘I would always consider environment factors (eg low CO2 emissions) when buying a new or used car’ by gender, age, socio-economic group, marital status, lifestage and age of own children in household, June 2008
Perceptions of Car Buying in General
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- Key points
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- Figure 57: Perceptions of car buying in general, June 2008
- Four wheels fun…
- …or fearsome?
- Fun versus frantic
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- Figure 58: Selected perceptions of car buying in general, by gender, age and socio-economic group, June 2008
- Keep it in the family
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- Figure 59: Selected perceptions of car buying in general, by gender and age, June 2008
- Turning browsers into buyers
Consumer Typologies
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- Key points
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- Figure 60: Car retailing consumer typology groups, June 2008
- Car retailing consumer typology groups
- Group 1: All-Rounders
- Group 2: Family Focus
- Group 3: Neutrals
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- Figure 61: Features sought in car dealerships, by consumer typology, June 2008
- Buying behaviour
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- Figure 62: How people go about buying a new or used car, by consumer typology group, June 2008
- Buying behaviour – number of methods used
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- Figure 63: Number of methods used when it comes to purchasing a new or used car, by consumer typology group, June 2008
- Family Focus dealer orientated
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- Figure 64: Factors influencing choice of dealer when buying a new or used car, by consumer typology group, June 2008
- Buying behaviour – number of methods used
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- Figure 65: Number of factors influencing choice of dealer when buying a new or used car, by consumer typology group, June 2008
Appendix: Who Uses Cars?
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- Figure 66: Presence of car in household that respondent currently drives, by detailed demographics, June 2008
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Appendix: The Credit Crunch and Buying Intentions
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- Figure 67: Impact of credit crunch on car buying plans over next two years, by detailed demographics, June 2008
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Appendix: How People Go About Buying Cars
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- Figure 68: How consumers would consider going about buying a car, by detailed demographics, June 2008
- Figure 69: How consumers would consider going about buying a car, by detailed demographics (continued), June 2008
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Appendix: Factors Influencing Choice of Dealer
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- Figure 70: Factors influencing choice of dealer, by detailed demographics, June 2008
- Figure 71: Factors influencing choice of dealer, by detailed demographics (continued), June 2008
- Figure 72: Factors influencing choice of dealer, by detailed demographics (continued), June 2008
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Appendix: What People Think of Dealerships
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- Figure 73: Attitudes towards car dealerships, by detailed demographics June 2008
- Figure 74: Attitudes towards car dealerships, by detailed demographics (contiuned), June 2008
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- Figure 75: Attitudes towards car dealerships, by detailed demographics (contiuned), June 2008
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Appendix: Factors Influencing Car Purchase
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- Figure 76: Environmental factors influencing car purchase, by detailed demographics, June 2008
- Figure 77: Environmental factors influencing car purchase, by detailed demographics (continued), June 2008
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Appendix: Perceptions of Car Buying In General
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- Figure 78: Perceptions of car buying in general, by detailed demographics, June 2008
- Figure 79: Perceptions of car buying in general, by detailed demographics (continued) June 2008
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Appendix: Consumer Typologies
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- Figure 80: Car retailing consumer typologies, by detailed demographic group, June 2008
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- Figure 81: Methods used when considering car purchase, by detailed demographic group, June 2008
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