CARSON, Calif. (May 24, 2016) — A majority of consumers planning to shop for a replacement vehicle are opting to buy a pre-owned vehicle vs. a new one, according to an AutoMD.com survey.
Price trumped every other purchase decision factor, according to survey results, followed by the knowledge that a vehicle will last at least 10 years, which may explain why more than half of these potential purchasers are considering a replacement vehicle that is more than two years old.
Survey respondents also indicated that they want a good deal, with the majority defining a good deal as being at or below invoice pricing. They often turn to third-party research sites and Google, as opposed to dealership websites, to make sure they get that deal, the survey found.
The AutoMD.com online survey of more than 1,000 vehicle owners noted that the lengthening vehicle ownership cycle is impacting vehicle purchasing.
About 59 percent of respondents said they planned to purchase a vehicle within six months, with the majority opting for a pre-owned vehicle and three-quarters saying that their purchase decision would be influenced by the cost of replacement parts. Interestingly, of those who said replacement parts were not a consideration, more than half said it was because it either did not occur to them or that they did not know where to look for that information, AutoMD.com said.
“At AutoMD.com, we have been reporting for years on the lengthening vehicle ownership cycle. This survey indicates how that extended vehicle lifecycle is impacting consumer vehicle purchase decisions,” said Tracey Virtue, vice president of AutoMD.com. “Clearly many consumers embrace the notion of a pre-owned vehicle as a viable primary vehicle and are looking to keep them running for the long term.”
When asked what kind of vehicle they would purchase for their next primary vehicle, only one in four respondents said they plan to buy new; about 76 percent plan to purchase a pre-owned vehicle, and about 55 percent are opting for a vehicle that is more than two years old.
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