Car buyers' decisions about whether to purchase a new or used model aren’t set in stone and a sizable proportion will change their minds and choose a new rather than a second hand model if they are happy with the price.
That’s according to Motors.co.uk, which questioned buyers of both types of vehicle about the motivations that led to their purchasing decisions. As well as the headline price, running costs also played a key part in whether they opted for a new or second hand model.
The research offers good insights into why buyers make decisions and can help dealers selling both new and used models to provide the right information that customers need. Remember to keep your road risks insurance up to date as part of your motor trade insurance, because test drives also play an important role in people’s buying decisions.
Motors.co.uk’s survey found that 34 per cent of those questioned who went for a new car did so because it was cheaper to run, while 25 per cent chose a new vehicle after receiving a headline discount.
Among those who bought a second hand car, six out of 10 admitted that they could be persuaded to upgrade to a new model if they received a big enough discount.
Peter Watts from Motors.co.uk, said: “We all know that sales of new cars are on the rise but it’s important to understand the specific reasons behind these purchases if the end goal is to sell a mixed portfolio of new and used.
“The franchised dealer needs to ensure they have the ideal used stock and availability of new inventory to capture the consumer’s enquiry and deliver on their requests. In addition, it is important to understand the need to be flexible around the delivery expectations of the customer to ensure that stock positioning maximises the profit opportunity.”