A study from the Institute for Fiscal Studies reveals younger and richer households are enjoying a boom time, with lower mortgage payments and falling motor fuel bills.
Ignoring the fact that fuel prices are about to rise again (don’t get me started) why is it that more motorists are buying used cars and not the fantastic new car deals we are reading about?
I am reminded of 1991 and the previous recession when those who used to drive ‘posh’ cars were targeted by vandals damaging our cars with key scratches. They were jealous because we were flaunting prosperity, they were feeling hard done by and wanted to take it out on us.
Could it be that some consumers see a ‘new car’ as an ‘irresponsible’ or ‘inappropriate’ buy in today’s hard up and carbon weary economy?
Hence the decision to buy a nearly new or used car which is perfectly fit for purpose but without the flamboyant flash number plate (and the deafening dissonance of depreciation…)
Not only that but I now sense that some motorists want to (be seen to) do what they feel is the right thing for the family purse and the environment. And whilst NEW was the neon sign of success in the 90s, frugal seems to be the new cool today. I also suspect that many consumers have moved a million miles from being yesterday’s aspirational wannabe celebrity mindset to that espoused by the new and highly influential US president’s ‘do what is right’ behaviour.
I don’t think the motor industry has grasped this yet and, other than fleet buyers who are more influenced by price than ever, I don’t think you can force individuals to buy ‘new’ when they want to feel and look good as a result. The word ‘cheap’ will not do this.
And whilst the industry might be able to sell a car with a charitable donation included, I doubt you can sell one on the basis of saving a job whereas that is the message the industry could do with getting across to potential buyers. By that I mean overseas buyers I’m afraid because the majority of the cars we produce are then exported…
Definitely the best strategy for the UK motor industry right now is to give motorists, women drivers included, what they want and need – good value used cars with a minimum year’s warranty and special deals for aftersales services to encourage the rest to visit garages more often so they run safer, greener and more economic cars.
To find out about moneysaving motoring offers for women drivers visit http://tiny.cc/motoringoffers504
I hope the sun shines for you this weekend.
FOXY Steph
