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Drivers weigh up price and brand-loyalty when choosing new vehicles

26 April 2024 Insights Read time 2m
Price and brand article - car on forecourt

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In an industry where purchases are an important financial decision, research from Close Brothers Motor Finance has revealed the key factors in the decision-making process of drivers looking to purchase their next vehicle.
 

Brand loyalty is still a strong factor in car purchasing, according to the research. A third (34%) of drivers tend to stick with the same manufacturer when choosing their new vehicles, while just over a fifth of respondents (23%) said that they usually get the newest version of the same vehicle that they already have. 42% on the other hand, only buy second hand vehicles.
 

But price is still the deciding factor. 30% of drivers look only for the cheapest price when making a purchase.
 

Whatever their motivations, car owners do their research when weighing up their choices. Over half (55%) of respondents look at car reviews, the same proportion take advice from family friends, and 38% rely on the expertise of car dealers to find the right vehicle for their needs. Loyalty comes into play here too; 26% usually go to the same dealer for each vehicle purchase.
 

Lisa Watson, Director of Sales at Close Brothers Motor Finance, said: “Motor dealers need to know the purchasing preferences of their customers to help inform their stock-making decisions. And our figures paint an interesting picture. They show that drivers are fairly evenly split between those who tend to stay with a single manufacturer - whether that be through loyalty or ease - and those who do not. At the same time, price plays a major role in decision-making, but the key take-away is that expert advice is sought by a majority of consumers. The fact that over a quarter return to the same dealer over and over is a real opportunity for dealers.

 

“For dealers, utilising insights and monitoring the latest trends is essential. It ensures they not only have the right stock on their forecourts to meet the ever changing customer demand, but also gives them the tools to get the price right for their customers. All insights on vehicle value help to shift stock sooner and retain more profit per unit, leading to better outcomes for customers and dealers.”

 

Purchasing Preferences

1.    I take advice from family and friends - 55%
2.    I take advice from car reviews - 55%
3.    I only purchase second hand vehicles - 42%
4.    I take advice from dealers - 38%
5.    I tend to stick with the same manufacturer - 34%
6.    I go for something different each time - 32%
7.    I get the cheapest vehicle option I can - 30%
8.    I usually go to the same motor dealer - 26%
9.    I usually get the newest version of the same vehicle I already have - 23%
10.    I only purchase new vehicles - 21%
 

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