Posts Tagged ‘Consumers’
Melanie Taylor asked:
In the modern world, cars are often considered more of a necessity than a luxury. They get us to work; they get the kids to school in the morning; they enable us to visit family at the weekends. It would follow that sales of cars are a reasonable indicator of the strength of the average consumer’s finances.
A new report from the Society of Motor Manufacturers and Traders (SMMT) shows that new car registrations fell by 21% in September, compared with August’s figures.
It was the fifth consecutive month that numbers of new car registrations had gone down, and the biggest drop so far – the closest was 18.6% between July and August.
Debt problems or careful planning?
So is this a serious indicator of the trouble the economy faces, or just a sign that people are taking care over their finances?
“It’s important to remember that this is a reflection of new car sales, and not necessarily car sales as a whole,” says a spokesperson for Debt Advisers Direct.
“It may well be that as we have seen with the supermarkets, consumers are simply keeping to a tighter budget. The market for second-hand cars could benefit, or perhaps people are just keeping their existing vehicles.”
But the spokesperson commented that the shift in spending behaviour still reflected a change in consumer attitudes brought on by the credit crunch. “A major factor will be the limitation in peoples’ ability to obtain credit. Sales of new cars rely almost entirely on credit, because very few people can afford to pay the full amount up front,” she said.
“Even for those who are still able to obtain car finance, many will be concerned about the risks surrounding the economy in general, and may want to avoid credit for fear of falling into debt.
“Likewise, some of those who were able to obtain car finance at the peak of the economic boom may now be suffering for it. As prices of other things such as energy and food rise, more and more people are at risk of debt problems, and the more debts you have, the higher the risk.”
The spokesperson added that anyone who does find themselves struggling with debt should not hesitate to seek the appropriate help.
“We advise anyone worried about their debts to contact an expert debt adviser as soon as possible,” she said. “They will talk you through your situation and help to find the best debt solution for you.”
In the modern world, cars are often considered more of a necessity than a luxury. They get us to work; they get the kids to school in the morning; they enable us to visit family at the weekends. It would follow that sales of cars are a reasonable indicator of the strength of the average consumer’s finances.
A new report from the Society of Motor Manufacturers and Traders (SMMT) shows that new car registrations fell by 21% in September, compared with August’s figures.
It was the fifth consecutive month that numbers of new car registrations had gone down, and the biggest drop so far – the closest was 18.6% between July and August.
Debt problems or careful planning?
So is this a serious indicator of the trouble the economy faces, or just a sign that people are taking care over their finances?
“It’s important to remember that this is a reflection of new car sales, and not necessarily car sales as a whole,” says a spokesperson for Debt Advisers Direct.
“It may well be that as we have seen with the supermarkets, consumers are simply keeping to a tighter budget. The market for second-hand cars could benefit, or perhaps people are just keeping their existing vehicles.”
But the spokesperson commented that the shift in spending behaviour still reflected a change in consumer attitudes brought on by the credit crunch. “A major factor will be the limitation in peoples’ ability to obtain credit. Sales of new cars rely almost entirely on credit, because very few people can afford to pay the full amount up front,” she said.
“Even for those who are still able to obtain car finance, many will be concerned about the risks surrounding the economy in general, and may want to avoid credit for fear of falling into debt.
“Likewise, some of those who were able to obtain car finance at the peak of the economic boom may now be suffering for it. As prices of other things such as energy and food rise, more and more people are at risk of debt problems, and the more debts you have, the higher the risk.”
The spokesperson added that anyone who does find themselves struggling with debt should not hesitate to seek the appropriate help.
“We advise anyone worried about their debts to contact an expert debt adviser as soon as possible,” she said. “They will talk you through your situation and help to find the best debt solution for you.”
credit plus asked:
Buying a new car is likely to be one of the biggest purchases you make other than buying a house, therefore when buying a car it is important to take many issues into consideration.
The current economic climate has left consumers struggling with cash flow. Therefore it is important for consumers to make sure they consider their own situation in terms of being able to afford certain goods. Cars, being a large cost yet important in most people lives, are available to purchase either by a lump sum payment or available on finance.
“while registrations of new cars for fleet and small business users are both expected to decline, Mintel believes that the downturn will have most impact upon sales to private individuals, which are expected to drop below 1 millions units for 2008” (Mintel 2008).
This market downturn has possible implications of increasing prices from dealers who need to maximise on each sale. The future car market is not set to recover from this for a few years yet. With no growth, and inflation increasing each year, the car market could suffer.
“Mintel forecasts difficult times ahead for the value of the total car market, with growth remaining stagnant. From 2008-2013 we expect the market to grow and decline by one percent. Without the effects of inflation on motoring this equates to a drop of 10%” (Mintel 2008).
There are some who believe that buying a car is something that consumers should consider doing whilst the country is in this downturn as dealers will become more competitive to sustain sales figures. The marketplace could be seen as an attractive proposition to those who are not as affected by the credit crunch or economic downturn as some others.
“A potential slowdown in the economy, cost of fuel and road charging are some of the factors that will make it difficult for this market to sustain growth. Furthermore competition is likely to grow strong, as people become savvier and aware of prices through searching on the web” (Mintel 2008).
Buying a car on finance is therefore an attractive option for some consumers, who are able to see through the now acclaimed recession. If the payments for a car are split to small monthly manageable payments rather than one large lump sum then it is more feasible to sustain a good cash flow for most consumers through these harder times.
The economic downturn is has a large effect on the lending market. Due to current banking conditions, banks are less willing to lend finance to consumers. The implications of which for buying a car or sourcing a car on finance for consumers means it will be harder for them to obtain finance without applying for a secured loan and or those with solid credit history.
However, it is still possible to get the finance for buying a car for those with poor credit as there are some banks, more stable than others, that are able to capitalise on the poor market environment.
Consumers seem to be less interested in the notion to buy a new car. New car sales a set to decrease by 17% but buying used cars is set to rise to 14%.
Used cars that depreciate less have become a more attractive option when looking to buy a car than buying a new car.
In the long term cars will remain essential for many, and as the economy regains strength there should be no reason why this market cannot return to strong positive growth, particular as the new concerns such as being greener impact on new car designs” (Mintel 2008)
Buying a new car is likely to be one of the biggest purchases you make other than buying a house, therefore when buying a car it is important to take many issues into consideration.
The current economic climate has left consumers struggling with cash flow. Therefore it is important for consumers to make sure they consider their own situation in terms of being able to afford certain goods. Cars, being a large cost yet important in most people lives, are available to purchase either by a lump sum payment or available on finance.
“while registrations of new cars for fleet and small business users are both expected to decline, Mintel believes that the downturn will have most impact upon sales to private individuals, which are expected to drop below 1 millions units for 2008” (Mintel 2008).
This market downturn has possible implications of increasing prices from dealers who need to maximise on each sale. The future car market is not set to recover from this for a few years yet. With no growth, and inflation increasing each year, the car market could suffer.
“Mintel forecasts difficult times ahead for the value of the total car market, with growth remaining stagnant. From 2008-2013 we expect the market to grow and decline by one percent. Without the effects of inflation on motoring this equates to a drop of 10%” (Mintel 2008).
There are some who believe that buying a car is something that consumers should consider doing whilst the country is in this downturn as dealers will become more competitive to sustain sales figures. The marketplace could be seen as an attractive proposition to those who are not as affected by the credit crunch or economic downturn as some others.
“A potential slowdown in the economy, cost of fuel and road charging are some of the factors that will make it difficult for this market to sustain growth. Furthermore competition is likely to grow strong, as people become savvier and aware of prices through searching on the web” (Mintel 2008).
Buying a car on finance is therefore an attractive option for some consumers, who are able to see through the now acclaimed recession. If the payments for a car are split to small monthly manageable payments rather than one large lump sum then it is more feasible to sustain a good cash flow for most consumers through these harder times.
The economic downturn is has a large effect on the lending market. Due to current banking conditions, banks are less willing to lend finance to consumers. The implications of which for buying a car or sourcing a car on finance for consumers means it will be harder for them to obtain finance without applying for a secured loan and or those with solid credit history.
However, it is still possible to get the finance for buying a car for those with poor credit as there are some banks, more stable than others, that are able to capitalise on the poor market environment.
Consumers seem to be less interested in the notion to buy a new car. New car sales a set to decrease by 17% but buying used cars is set to rise to 14%.
Used cars that depreciate less have become a more attractive option when looking to buy a car than buying a new car.
In the long term cars will remain essential for many, and as the economy regains strength there should be no reason why this market cannot return to strong positive growth, particular as the new concerns such as being greener impact on new car designs” (Mintel 2008)
Jennifer Dylan asked:
Cars.com and Experian Automotive went on a collaboration wherein they took some time to study the phenomena called the certified pre-owned program. Together, they had already completed the task at hand and they were already able to share with the motoring public important and pertinent information on such.
The studies done by Experian Automotive as well as by Cars.com was actually focused on the measures of impact of certification on the sales of vehicles as well as focusing on the awareness of consumers and buyers when it came to certified pre-owned vehicle programs and the features that these held.
Interestingly, according to that study completed by Cars.com, their shoppers actually did share what they were actually looking for and the certain vehicle brand that they were eyeing. These people actually were able to purchase a certified pre-owned vehicle in a much shorter time compared to those who did not. The brand that they had first shared with Cars.com was also the same brand from within they bought their vehicle. This was quite in line with another study that Experian Automotive did: the results simply showed that shoppers were more likely to purchase certified pre-owned vehicles when they already had a brand in mind. Experts do believe that this may be such for CPO programs actually helped customers narrow down their choices and help them decide better. Perhaps if such programs also were available when you were buying all Land Rover parts, then maybe you also would have an easier time choosing and a faster time purchasing what is it that you wanted or needed.
Dave Nemtuda is the director of Experian Automotive’s Auto Check Solutions team and he does share, “These findings demonstrate the continued strength and value of certified pre-owned (CPO) programs to the manufacturers. In fact, a CPO lead is 75 more likely to convert into a new vehicle sale than a non-CPO used vehicle lead.”
The vice president of advertising for Cars.com, Kevin Considine, also imparted some of the study’s highlights, “While we have come a long way in building general awareness and consideration of CPO vehicles, we see continued opportunity for manufacturers to educate potential buyers of the many benefits to buying a certified used vehicle.”
Cars.com and Experian Automotive went on a collaboration wherein they took some time to study the phenomena called the certified pre-owned program. Together, they had already completed the task at hand and they were already able to share with the motoring public important and pertinent information on such.
The studies done by Experian Automotive as well as by Cars.com was actually focused on the measures of impact of certification on the sales of vehicles as well as focusing on the awareness of consumers and buyers when it came to certified pre-owned vehicle programs and the features that these held.
Interestingly, according to that study completed by Cars.com, their shoppers actually did share what they were actually looking for and the certain vehicle brand that they were eyeing. These people actually were able to purchase a certified pre-owned vehicle in a much shorter time compared to those who did not. The brand that they had first shared with Cars.com was also the same brand from within they bought their vehicle. This was quite in line with another study that Experian Automotive did: the results simply showed that shoppers were more likely to purchase certified pre-owned vehicles when they already had a brand in mind. Experts do believe that this may be such for CPO programs actually helped customers narrow down their choices and help them decide better. Perhaps if such programs also were available when you were buying all Land Rover parts, then maybe you also would have an easier time choosing and a faster time purchasing what is it that you wanted or needed.
Dave Nemtuda is the director of Experian Automotive’s Auto Check Solutions team and he does share, “These findings demonstrate the continued strength and value of certified pre-owned (CPO) programs to the manufacturers. In fact, a CPO lead is 75 more likely to convert into a new vehicle sale than a non-CPO used vehicle lead.”
The vice president of advertising for Cars.com, Kevin Considine, also imparted some of the study’s highlights, “While we have come a long way in building general awareness and consideration of CPO vehicles, we see continued opportunity for manufacturers to educate potential buyers of the many benefits to buying a certified used vehicle.”