Trust and reputation are significantly more important to the younger generation than to older ones when it comes to deciding where to buy their next used car, according to Experian(r), the information company. While trust and reputation are key factors across all age groups, recent research conducted by Experian's Canvasse Opinion consumer research service indicates that they are of greater importance to 18-24 year olds.
Kirk Fletcher, Managing Director of Experian's Automotive division, said: "More car buyers are turning to cheaper, older cars, so it will come as no surprise that younger buyers are the most likely to go for an older model. However, with older cars there are potentially more problems, so being able to buy one from a trustworthy source becomes more important.
"Used cars aged between three and nine years old were the only ones to see an increase in sales during 2006 and the survey confirmed that the young are the biggest fans of these cars for the obvious reason of price although they are still keenly interested in the car's condition to ensure they are getting a good deal."
While price is the most important factor when it comes to purchasing a used car for all age groups, it is, not surprisingly, more important to the younger generation, particularly the 18-24 year olds. Interestingly though, whilst the condition of the car is also important to all age groups, younger used car buyers more frequently than any other age group state that the condition is an important factor. This is also the case when it comes to reliability.
Before buying a used car, younger buyers, aged between 18 and 34, are more inclined to discuss the issue with friends (40.6%) or take recommendations from friends and family (26.2%) than all of those car buyers aged over 35 (19.5% and 17.0% respectively).
Also, the younger the used car buyer, the more significant surfing the Internet becomes in researching the purchase (55.7% of 18-24 year olds compared to 48.6% of those aged 25 to 34, 40.6% of those aged 35 to 44, 32.3% of those aged 45 to 54, 29.4% of those aged 55 to 64 and 20.4% of those aged 65 or over). By contrast, the older generation is more likely to base the decision on previous experience of a car than younger drivers (16.7% of 18-24 year olds compared to 34.7% of those aged 65 or more, for example).
Kirk Fletcher said: "It could be argued that older car buyers are focused more on what the car would say about them, while the results suggest that the young are more concerned about getting value for money and not getting ripped off. They have a smaller disposable income and, therefore, a greater desire to find a bargain. However, in a bid to bag a bargain the young could be putting themselves more at risk."
"Younger car buyers are more likely to spend less than £5,000 on a used car (70.1%) according to the consumer survey. However, with less money to spend, it is possible that they are less likely to take measures, such as carrying out an AA Car Data Check, to protect themselves from pitfalls such as clocking, fraud and ringers, and with fraud rings becoming more complex and focusing their energies on the vulnerable, the young are an easy target.
The survey also found that while those aged between 18 and 24 are likely to place more importance on trust and reputation, they are also more likely to buy from a private individual than from a dealer.
Last year the total number of cars classed as write-offs by insurance companies, increased by nearly 9%. Of all those classed as write-offs, nearly 30% were deemed too dangerous to return to the roads, but some of them still do. The remaining 70% of write-offs are usually uneconomical to repair, so their value drops significantly, but many can still be found in the used car market at higher prices than they are worth.
The research was completed by Experian's consumer research service, Canvasse Opinion, which surveyed a representative sample of 2,320 adults in the UK online, between 11 and 17 January 2007.
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