Table of Contents
Introduction and Abbreviations
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- Definitions
- Research methodology
- Consumer research
- Socio-economic group
- Lifestage and Special Groups
- ACORN
- Abbreviations
Executive Summary
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- Growth in the new car market
- Limited fleet sales growth but small business registrations expand
- Small cars speeding ahead, and diesel cars close on their tail
- Old used cars being sent to the scrapheap
- New cars sales beat 1999 record
- Cheap finance fuelled spending
- Supply exceeding demand
- Resentment of high prices sustained
- Used sales still leading the market, but the gap is closing
- Drive for safety
- Interest rate rises could limit future growth
- Oversupply a strong influence on the market
- Growth of the ‘superdealer’?
- Manufacturer reaction to the new Block Exemption
- New entrants thin on the ground
- Multi-franchising failed to be jump-started
- Growth of car supermarkets
- Internet retailers turn to the phone
- New Block Exemption has not driven change
- But consumers show a willingness to use other garages
- Future prospects
Premier Insight
Retail Sales
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- Private sales have driven market growth
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- Figure 1: Private new car registrations, 1999-2003
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- Figure 2: Total new car registrations, by private, fleet and business sales, 1999-2003
- Supermini models are replacing the desire for large cars
- Market value and pricing
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- Figure 3: Value of new car sales, at current and constant prices, 1999-2003
- Used car sales
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- Figure 4: Volume of new and used car sales, 1999-2003
- Increasing value of the used car market
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- Figure 5: Value of used car sales, at current and constant prices, 1999-2003
- Seasonality
- Car sales as a proportion of car parc
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- Figure 6: Car sales volume as a proportion of UK car parc, 1999-2003
- Market segmentation
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- Figure 7: New car sales, by product category, 2003
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- Figure 8: New car sales, by product category, 1999-2003
- Ford still the UK’s favourite
- Luxury manufacturers expanding to include cheaper models
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- Figure 9: Manufacturer shares of new car registrations, 2000-03
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- Figure 10: Top ten car registrations, by model, 2002 and 2003
Consumer Expenditure
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- Car prices have dropped and sales have risen
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- Figure 11: Consumer expenditure on car purchasing, at current and constant 1999 prices, 1999-2003
- Consumer spending on cars and other motoring expenses
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- Figure 12: Consumer expenditure on vehicle purchasing, servicing and repair and motoring expenses, at current prices, 1999-2003
- The cost of services and repairs is accelerating
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- Figure 13: Share of total consumer expenditure taken by vehicle purchasing, servicing and repair and motoring expenses, at current prices, 1999-2003
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- Figure 14: Consumer expenditure on vehicle purchasing, servicing and repair and motoring expenses, at constant 2000 prices, 1999-2003
- Consumers waste money on car servicing by using franchised service centres
- Competition in car servicing will be slow
Retail Structure
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- New car retailers
- Dealers looking for larger locations for multi-brand offerings
- Small dealers are exiting the market
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- Figure 15: Number of UK franchised dealer outlets, 1993-2003
- The car servicing market will be slow to open to competition
- Manufacturers move towards owning and operating dealerships
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- Figure 16: Number of UK franchised dealer outlets, by marque, 1999-2003
- Used car retailers
- Demand for young used cars
- Car supermarkets are on the increase
- Car importers
- Awareness of lowering prices reduces car imports
- Internet car retailers
- More sales by phone than online
- Other retail channels
- Banks
- Other retailers
- Manufacturer direct sales
Market Factors
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- Demographic trends
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- Figure 17: Total UK population, by age group, 1998-2009
- Number of UK households growing but average size of household in decline
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- Figure 18: Number and make-up of UK households, 1998-2009
- Growth in numbers of working women
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- Figure 19: Structure of working population, by gender, 1998-2009
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- Figure 20: PDI, savings and consumer expenditure, at constant 1998 prices, 1998-2009
- Population and car parc
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- Figure 21: Trends in UK adult population and car parc, 1998-2009
- Number of UK driving licence holders
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- Figure 22: Full driving licence holders, by age and gender, 1985/96-1999/2001
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- Figure 23: Driving test pass rate, 1994-2002/03
- The cost of motoring
- Road taxes
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- Figure 24: Road taxation revenue, 1999/2000-2001/02
- Figure 25: Fuel duty rates, 1995-2002
- Insurance
- Depreciation
- New tax laws
- Car finance
- Block Exemption Regulation new freedom of choice
- Urban traffic initiatives
The Consumer
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- Consumer views
- Function is key
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- Figure 26: Consumer levels of agreement with the statement ‘my car is only there to get me from A to B’, by gender, 2000 and 2003
- Looks not everything
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- Figure 27: Consumer levels of agreement with the statement ‘I would choose a car mainly on the basis of its looks’, 2000 and 2003
- Safety first
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- Figure 28: Consumer levels of agreement with the statement ‘My car should be equipped with all possible safety features’, 2003
- Men are the comfort seekers
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- Figure 29: Consumer levels of agreement with the statement ‘Comfort is the most important thing in a car’, 2003
- Car ownership
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- Figure 30: Car ownership and most recently purchased car, new or used, by demographic sub-groups, 2003
- Mintel’s consumer research
- Key findings
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- Figure 31: Respondents that already drive, and those that currently do not drive but plan to do so in the next 12 months, by gender, age and socio-economic group, February 2004
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- Figure 32: Respondents that already drive, and those that currently do not drive but plan to do so in the next 12 months, by lifestage and Mintel’s Special Groups, February 2004
- More on the road in the South
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- Figure 33: Respondents that already drive, and those that currently do not drive but plan to do so in the next 12 months, by region and ACORN categories, February 2004
- Internet advertising is key for new generations
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- Figure 34: Respondents that already drive, and those that currently do not drive but plan to do so in the next 12 months, by media, commercial TV viewing and supermarket usage, February 2004
- Source of car purchases
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- Figure 35: Method of obtaining vehicle, 2002 and 2004
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- Figure 36: Method of obtaining vehicle, by gender, age and socio-economic group, February 2004
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- Figure 37: Method of obtaining vehicle, by lifestage and Mintel’s Special Groups, February 2004
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- Figure 38: Method of obtaining vehicle, by region and ACORN categories, February 2004
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- Figure 39: Method of obtaining vehicle, by media, commercial TV viewing and supermarket usage, February 2004
Consumer Attitudes and Typologies
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- Key facts
- Consumer attitudes towards car buying
- Appeal of importing new cars has fallen
- Slowdown in the demand for used cars
- Confidence high in the showroom
- Less of a need for advice…
- …but happy to research online or in magazines
- Internet intent
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- Figure 40: Consumer attitudes towards buying cars, 2002 and 2004
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- Figure 41: Consumers planning to buy a new or used car in the next 12 months, those who research before they buy, and those who always return to the same dealer, by gender, age and socio-economic group, February 2004
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- Figure 42: Consumers planning to buy a new or used car in the next 12 months, those who research before they buy, and those who always return to the same dealer, by lifestage and Mintel’s Special Groups, February 2004
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- Figure 43: Consumers planning to buy a new or used car in the next 12 months, those who research before they buy, and those who always return to the same dealer, by region and ACORN categories, February 2004
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- Figure 44: Consumers planning to buy a new or used car in the next 12 months, those who research before they buy, and those who always return to the same dealer, by media, commercial TV viewing and supermarket usage, February 2004
- Consumer confidence when buying cars
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- Figure 45: Consumers who seek independent advice when buying a new or used car, those who feel confident to go alone to a new car showroom, and those happy to import to save money, by gender, age and socio-economic group, February 2004
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- Figure 46: Consumers who seek independent advice when buying a new or used car, those who feel confident to go alone to a new car showroom, and those happy to import to save money, by lifestage and Mintel’s Special Groups, February 2004
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- Figure 47: Consumers who seek independent advice when buying a new or used car, those who feel confident to go alone to a new car showroom, and those happy to import to save money, by region and ACORN categories, February 2004
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- Figure 48: Consumers who seek independent advice when buying a new or used car, those who feel confident to go alone to a new car showroom, and those happy to import to save money, by media, commercial TV and supermarket usage, February 2004
- Consumer confidence of buying from the Internet
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- Figure 49: Consumers who feel confident to go alone to a used car dealer, those who would consider going abroad to buy a new car, and those who would consider buying a new or used car over the Internet, by gender, age and socio-economic group, February 2004
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- Figure 50: Consumers who feel confident to go alone to a used car dealer, those who would consider going abroad to buy a new car, and those who would consider buying a new or used car over the Internet, by lifestage and Mintel’s Special Groups, February 2004
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- Figure 51: Consumers who feel confident to go alone to a used car dealer, those who would consider going abroad to buy a new car, and those who would consider buying a new or used car over the Internet, by region and ACORN categories, February 2004
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- Figure 52: Consumers who feel confident to go alone to a used car dealer, those who would consider going abroad to buy a new car, and those who would consider buying a new or used car over the Internet, by media, commercial TV viewing and supermarket usage, February 2004
Agreements with Statements Related to Car Buying
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- Changing nature of the car market
- Price resentment
- Aftercare crucial
- Shopping around for service
- Concern over high maintenance costs
- Fall in price as the main motivator
- Low interest in multi-brand dealers
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- Figure 53: Consumer levels of agreement with statements about car buying and servicing, 2002 and 2004
- Car prices still too high
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- Figure 54: Consumer attitudes towards car pricing, dealer reputation and single versus multi-brand dealerships, by gender, age and socio-economic group, February 2004
- Importance of a good reputation
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- Figure 55: Consumer attitudes towards car pricing, dealer reputation and single versus multi-brand dealerships, by lifestage and Mintel’s Special Groups, February 2004
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- Figure 56: Consumer attitudes towards car pricing, dealer reputation and single versus multi-brand dealerships, by region and ACORN categories, February 2004
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- Figure 57: Consumer attitudes towards car pricing, dealer reputation and single versus multi-brand dealerships, by media, commercial TV viewing and supermarket usage, February 2004
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- Figure 58: Consumer attitudes towards car buying, car supermarkets, warranties and after-sales service, and new registrations, by gender, age and socio-economic group, February 2004
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- Figure 59: Consumer attitudes towards car buying, car supermarkets, warranties and after-sales service, and new registrations, by lifestage and Mintel’s Special Groups, February 2004
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- Figure 60: Consumer attitudes towards car buying, car supermarkets, warranties and after-sales service, and new registrations, by region and ACORN categories, February 2004
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- Figure 61: Consumer attitudes towards car buying, car supermarkets, warranties and after-sales service, and new registrations, by media, commercial TV viewing and supermarket usage, February 2004
- Consumer attitudes towards car servicing
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- Figure 62: Consumer attitudes towards car servicing at dealerships, manufacturer-approved garages, independent specialists and garages offering best value, by gender, age and socio-economic group, February 2004
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- Figure 63: Consumer attitudes towards car servicing at dealerships, manufacturer-approved garages, independent specialists and garages offering best value, by lifestage and Mintel’s Special Groups, February 2004
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- Figure 64: Consumer attitudes towards car servicing at dealerships, manufacturer-approved garages, independent specialists and garages offering best value, by region and ACORN categories, February 2004
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- Figure 65: Consumer attitudes towards car servicing at dealerships, manufacturer-approved garages, independent specialists and garages offering best value, by media, commercial TV viewing and supermarket usage, February 2004
- Identifying targets
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- Figure 66: Consumer car purchasing typologies, February 2004
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- Figure 67: Car retailing typlogies, by gender, age and socio-economic group, February 2004
- Figure 68: Car retailing typologies, by lifestage and Mintel’s Special Groups, February 2004
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- Figure 69: Car retailing typologies, by region and ACORN categories, February 2004
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- Figure 70: Car retailing typologies, by media, commercial TV viewing and supermarket usage, February 2004
- Cross-tabulation of typologies with source of purchase
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- Figure 71: Car retailing typologies, by source of car purchase, February 2004
- Cross-tabulation of clusters with attitude statements
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- Figure 72: Car retailing typologies, by consumer attitudes towards purchasing, February 2004
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- Figure 73: Car retailing typologies, by consumer attitudes towards pricing, servicing, warranties and new registrations, February 2004
Retail Market Shares
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- Figure 74: Top ten UK franchised car dealers, by turnover, number of outlets and market share, 2003
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- Figure 75: Top ten UK franchised dealers, by franchises held, 2003
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Retailer Profiles
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- Arnold Clark Automobiles Ltd
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- Figure 76: Arnold Clark Automobiles Ltd, financial performance, 1999-2003
- Camden Motor Group
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- Figure 77: Camden Motor Group Ltd, financial performance, 2001 and 2002
- CD Bramall plc
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- Figure 78: CD Bramall plc, financial performance, 1999-2002
- Dixon Motors
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- Figure 79: Dixon Motors plc, financial performance, 1999-2003
- DaimlerChrysler UK Retail
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- Figure 80: DaimlerChrysler UK Retail Ltd, financial performance, 2001 and 2002
- HR Owen plc
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- Figure 81: HR Owen plc, financial performance, 1999-2003
- Inchcape Retail Ltd
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- Figure 82: Inchcape plc, financial performance, 1999-2003
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- Figure 83: Inchcape Retail Ltd (UK), financial performance, 1999-2003
- Pendragon plc
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- Figure 84: Pendragon plc, group financial performance, 1999-2003
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- Figure 85: Pendragon plc, UK sales and profits performance, 1999-2003
- Reg Vardy plc
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- Figure 86: Reg Vardy plc, financial performance, 1999-2003
- Lancaster/Jardine Motors Group
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- Figure 87: Jardine Motors Group, UK segment, financial performance, 1999-2003
- Lookers plc
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- Figure 88: Lookers plc, financial performance, 1999-2003
- Arriva plc (Motor Retailing Division)
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- Figure 89: Arriva plc, Motor Vehicle Retailing Division, financial performance, 1999-2002
- Bristol Street Group Ltd
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- Figure 90: Bristol Street Group Ltd, financial performance, 1999-2002
- Marshall Motor Group Ltd
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- Figure 91: Marshall Motor Group Ltd, financial performance, 1999-2002
- Ryland Group plc
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- Figure 92: Ryland Group, financial performance, 1999-2002
- Sytner Group
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- Figure 93: Sytner Group plc, financial performance, 14 months to February 2001
- Leading Internet/telephone retailers
- Car importers
- Broadspeed.com
- Oneswoop.com
- Showroom4cars.com
- Virgin.com
- Online car retailers
- Autobytel.co.uk
- Autotrader.co.uk
- Ebay.co.uk
- Jamjar.com
- Tins.co.uk
Retail Practices and Operational Issues
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- 2003 a resoundingly successful year?
- Were price levels maintained in 2003?
- Do imports still offer a price advantage to consumers?
- Which market segments were most successful in 2003?
- Which brands were most successful in 2003?
- What factors affected manufacturers in 2003?
- What are the prospects for sales in 2004?
- Which dealerships are currently the strongest?
- Have larger dealers been growing at the expense of smaller dealers, especially since the Block Exemption changes?
- Has the practice of ‘setting aside’ of new cars been widely adopted by dealers?
- Has the new Block Exemption regime brought about any increase in multi-franchising?
- Has the introduction of more competition in after-sales affected dealerships?
- Have the new Block Exemption rules had any effect at all on the manufacturer-dealer relationship?
- Do you think manufacturers may be tempted to open their own retail sites?
- Are there any potential new entrants to the car retailing sector?
- Is the Internet having any impact on car retailing?
Advertising Expenditure
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- Figure 94: Main media advertising expenditure, by top-spending motor retailers, ranked by 2002 expenditure, 1998-2002
- Share of spending by media type
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- Figure 95: Usage of advertising media by all motor dealers, 2001 and 2002
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The Future
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- Future sales volumes will depend on both supply and demand factors
- Lifestyle factors favour a healthy demand for cars in the future
- The potential effect of the revised Block Exemption
- The potential effect on after-sales servicing
- Conclusion
Forecast
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- Figure 96: Forecast of consumer expenditure on vehicle purchasing, servicing and repair and motoring expenses, at current prices, 2003-09
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