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ICDP survey identifies new car buying trends

Ford_showroom_Evans_Halshaw_620Manufacturer websites are the first port of call for customers researching a new car purchase, according to new research from the International Car Distribution Programme, the independent automotive research company.

The DataPort Consumer Survey research also found that new car buyers make 3.2 visits to 2.4 dealers during the buying process, while 85% of new car buyers conduct online research before visiting a dealership.

The research, which polled customer views on new car sales and aftersales experiences, is based on data collected from 2,100 respondents in the UK, Belgium, France, Germany, Italy, Netherlands and Spain.

ICDP also found that 45% of buyers only looked at a single brand and less than half of all buyers were prepared to drive more than 30 minutes to a sales point.

Respondents were asked about their dealership experiences with the research showing just 60% took a test drive, down from 80% in 2012 and dealership staff and processes are the most important influence on the buying decision, compared to the product or premises.

“Our successive surveys into both new car buying and aftersales highlight the rapid changes that are happening in consumer behaviour. Digitalisation is obviously a big theme, with the majority of customers conducting some form of online research before buying a new car or taking their vehicle for a service or repair,” said ICDP researcher Gareth Arnould.

“But at the same time customers show inconsistent attitudes towards physical outlets; the number of dealer visits have remained steady over recent years, whilst willingness to drive is decreasing and at the dealership the people and process factors are more important than physical appearance or standards.

“All this results in customers wanting dense networks of physical outlets, which is in direct conflict with a requirement to reduce networks to maintain dealer profitability. Luckily, customers generally appear open to new formats, such as pop-up stores, which can provide network coverage in place of traditional dealerships, thus allowing network reductions whilst still maintaining the customer requirement for touchpoints.”

When it comes to aftersales ICDP found 20% of customers do not have a service plan, although just 4% were offered a service plan at their most recent workshop visit.

ICDP said habit is the primary reason for picking the garage they used, followed by proximity to home or work and recommendations by friends or relatives. Less than a quarter of customers said they would go to a workshop they have had no previous interaction with.

Just 30% of aftersales customers would drive 30 minutes or more to a workshop, while 56% went online to conduct research, with parts being the most researched topic.

On average aftersales customers book appointments four days before the workshop visit, although this averaged five days for UK customers.

Click here for details on how to buy and download the full report.

Key findings

New car buyers

  • 85% of new car buyers conduct pre-visit online research
  • Manufacturer websites were the first port of call for 66%
  • Buyers make 3.2 visits to 2.4 dealers
  • 45% of buyers only looked at a single brand
  • Over half of buyers have had no previous interaction with the dealer they bought from
  • Less than half of buyers were prepared to drive more than 30 minutes to a sales point
  • Just 60% took a test drive, down from 80% in 2012

Aftersales customers

  • Less than a quarter of people go to a workshop they have had no previous interaction with
  • Habit is the primary reason for picking the garage they used, followed by proximity to
  • home or work and recommendations by friends or relatives
  • 30% of aftersales customers would drive 30 minutes or more for an aftersales
  • experience
  • 56% went online to conduct research, with parts being the most researched topic
  • On average aftersales customers book the appointment four days before the workshop visit (five days in the UK)
  • 20% of aftersales customers don’t have a service plan but would be willing to purchase one (just 4% were offered a service plan at their most recent visit)

 

 

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