(Mon 14 Aug 06)

The Future Foundation, a consultancy owned by information company Experian, has listed the four key factors behind our choice of car. First of all comes family influence - it's now rare for the man of the house to decide what car to buy all on his own; wives and partners have a much bigger say than before, and so do children as young as 8.

Then there's lifestyle. There are more divorces, second marriages and single parents than in the past, so it's no longer reasonable to define someone's lifestyle simply on the basis of what age they are - though Experian points out that many car retailers continue to do exactly that.

The third factor is wealth. Although average earnings are 50% higher than they were 15 years ago, the Future Foundation has established that customers are more concerned about price than ever before, expecting greater value for money than in the past. In another 15 years, earnings will be 50% higher again, and customers are likely to become ever more demanding.

Finally, there's the internet. Only 2% of customers buy their cars online, but more than 60% compare cars online before going to a dealer.

"The trends highlighted by Future Foundation show why there is a real need for motor retailers to become more adept at running targeted marketing campaigns," says Rob Whalley, Managing Director of Experian's Automotive division. "Instead of simply categorising people by age, dealers need to understand more about who and where their potential customers are, not only in terms of looking for new prospects, but also by looking internally to their existing customer base.
 
"With car prices coming down, endless lines of special offers both in the used and new car markets and an environment where there are more cars than consumers, dealers need to maximise the profitability of both new and used car sales. They can achieve this by taking steps to better understand their current and potential customers and employing intelligent marketing techniques, which help them better target, acquire, manage and maximise customer relationships."

Previous: Suzuki Looks To Future                                                             Next: Cheap Insurance For Volkswagens

Back to News index