Economic pressure forcing UK motorists into greener choices

(17/09/2008)

According to the 18th annual Used Car Market Report published by British Car Auctions (BCA), motorists are being forced into choices that are actually good for the environment. And it is the wealthier sector of the population who appear to be prepared to make the most changes – for their own benefit and the environment.

The Report includes a survey of over 3,000 UK motorists’ attitudes to motoring and car buying, conducted in April 2008. A clear message from the report is that while economics are clearly driving motorists’ choices, these could be having the Government’s desired effect of making motorists ‘think green’ too.

“Our latest Used Car Market Report reflects the downturn in the economy seen in the last twelve months”, confirmed Tim Naylor, spokesman for BCA. “UK drivers are changing their motoring habits to cope with the tougher economic conditions. And almost as an aside, many of these changes will also benefit the environment.

“We highlighted a year ago that UK motorists were unlikely to embrace green issues unless their hand was forced. It seems the credit crunch, combined with worries about Vehicle Excise Duty and rising fuel and living costs, has done just that!”

The critical issues that influence the choice of vehicle haven’t changed significantly year on year, with price still coming top of the list at 52% ahead of make/model, mileage and age. However, environmental issues have increased in importance for used car buyers.

This year saw 6% of respondents saying environmental considerations were an influencing factor in their most recent car purchase, compared to 4% last year and just 2% in 2006. And it was the less well off sectors of the consumer marketplace that were marginally more likely to have considered the environment in their car purchase – almost certainly driven by the rising cost of motoring in the past 12 months.

Walking more often is the measure favoured by 38% of motorists to cut their personal motoring carbon footprint, with 41% of the wealthier drivers taking this stance compared to just 29% of the poorest drivers.

Nearly a third of all drivers are happy to cut out unnecessary journeys. And, again, it was the wealthier drivers who were more likely to make this sacrifice at 37% with just 26% of C2 drivers taking this option.

Younger age groups are more likely to use public transport or car share. Older motorists are less keen to leave their personal transport behind, but are prepared to drive more slowly and accelerate less quickly. But owners of cars costing more than £20,000 appear to have little appetite for walking more often, cutting out unnecessary journeys or using public transport. They feel they can make their contribution by buying a car with lower CO2 emissions.

High fuel costs continue to concern motorists. When asked what steps they might take to tackle this, nearly 30% said they will attempt to reduce mileage. Those motorists in the C1, D and E socio-economic groups are most likely to reduce their mileage at 35%, 34% and 31% respectively. Only 30% of AB drivers expect to reduce mileage to save money.

The choice of their next vehicle was also considered important in offsetting the high cost of fuel. Half of all respondents said they would consider buying a car that does more miles to the gallon next time. A fifth of all respondents said they would change to a car with lower service and maintenance costs. However, it was AB drivers who were the largest proportion to consider this option at 23% - possibly because they have the option to down-size, unlike those in the lower socio-economic groups who are probably already driving lower cost vehicles.

When questioned on the effect of the Government’s planned changes in vehicle excise duty on the type of car they buy next, 28% of motorists said they would move to a car with a lower CO2 emission rating with, again, the wealthier motorists being the larger proportion to favour this option at 33% compared to just 24% of C2 motorists. Worryingly for motor manufacturers, 16% of respondents said they would consider buying used rather than new next time as a result of the planned changes.

When asked what they might do to mitigate the effects of the credit crunch on their next car purchase, 9% said they would go for a vehicle in a lower insurance group with the same number saying they would opt for a lower priced car next time round. For some motorists, the economic conditions would mean deferring a potential car purchase – 7% postponing in the short term, 4% deferring indefinitely.

And interestingly, it was actually the wealthier motorists who were the larger proportion likely to defer their next purchase in the short-term at 9% compared to just 5% of D group drivers.

“The new and used vehicle market plays a key role in the UK economy, generating over £66 billion in purchase costs alone last year,” added Tim Naylor. “What we have seen in recent months is a lack of confidence in consumers to go out and buy. Our survey found that the number of consumers who had bought a car in the last two years dropped to 37% compared to 40% in 2007. 28% think they are likely to buy a car in the next 12 months; compared to 47% who say it’s unlikely or they definitely won’t buy a car in the next year.

“But the key question for the motor industry now is whether the current economic factors will mean motorists will hold onto their existing cars for longer, as worries about job security, inflation and simply paying the mortgage take hold.”

The Report is published in September 2008 and priced at £225, softback, A4, perfect bound, 100 pp.

Related categories:  Green cars and environment   Hybrid and electric car   Used cars and aftermarket