UK Focuses On 'Best Price'
Last updated: 07/09/2006 - 09:38
Car buyers move away from the traditional supply channels, with just 35% stipulating a desire to buy from a UK bricks-and-mortar retailer.
More than half of all new car buyers see little difference buying from an import, internet or traditional dealer... as long as they get the best price.
The latest bi-annual survey of car buying habits by Car Price Check shows that price continues to be more important than origin for the consumer, with 54% saying they have no preference between an import and a UK supplier.
This compares with 11% who said they wanted to buy from an import source, and 35% who wanted to be supplied by a UK source. The findings are based on an analysis of the buying habits of 16,000 active consumers carried out in July.
When the first survey took place last January, 61% of the sample initially meant to buy from a local source. Since then, there has been a gradual move away from the traditional supply channels, with just 35% of people now stipulating an initial desire to buy from a UK bricks-and-mortar retailer.
Car Price Check's CEO Steve Evans believes the industry has been "a bit too internally focused" on analysing and commenting upon the competitive pressures and virtues in the different trade channels, and has ignored the fact that the consumer is delivering a slightly different message.
Low-Cost Route
"Although many cars are not available as a 'build to order' choice from an import source, suppliers in this space are using the internet as a low-cost route to market for a varied proposition which embraces both import and UK vehicles, some of which are supplied through arrangements with UK dealer groups or even direct with manufacturers," he said.
Closer analysis, said Evans, suggests that consumers are prepared to decide for themselves if there is really that great a difference between an imported vehicle and a UK-supplied car.
Ian Lancaster, CEO of Virgin Cars, said the feedback it receives echoes Car Price Check's findings. He said: "We have seen significant sales growth over the past 12 months and, for our 5,500 customers, price is only one of the prime buying motivators - service, trust and convenience all play a major part in the car-buyers' decision-making process."
Dimitri Constantinou, director of an internet dealer, said: "The research presents impartial evidence that UK consumers have truly embraced the internet in an effort to buy new cars at lower prices.
"With European-wide warranties available on all new cars purchased within the EC, there really should be no reason why cars - like any other consumer goods - cannot be purchased in any country within the European Community."
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