Press release

The not so new generation – 17-24 year olds open to buying a new or used car

42% of 17-24 year olds open to buying either a new or used car for their next purchase.

  • Only 9% of Millennials visit a retailer to browse models
  • Nearly 50% of young car buyers also intend to buy on their first dealership visit
  • Friendly and courteous staff is the third most important reason for choosing where they buy a car

 

Nearly 50% of 17-24 year olds are open to buying a new or used car, which is significantly more than any other age group. The next closest age group open to considering new or used are 25-35 year olds with 38% claiming they’re undecided.

48% of all younger consumers aged 17-24 intend to buy a car on their first visit to a dealership, the second highest percentage (38%) are those aged 25-34 years, according to Auto Trader’s Annual Buying Report.

The UK’s largest automotive marketplace surveyed over 2,000 consumers for its Annual Buying Report and found that spending time online is key for Millennials when researching which car to buy, as only 9% of them claim to visit a retailer to browse models. What’s more, over a third of all car buyers discount visiting a dealership as part of their research to choose which car to buy next.

While the majority of Millennials have a clear idea of the car they are interested in buying when they walk into a dealership, nearly half of them are open to whether it will be a new or pre-owned version, and this provides an opportunity for manufacturers and retailers to influence their buying decision.

Nick King, Auto Trader Insight Director, said: “We know there is now no real difference between a new and a used car buyer anymore – there are just car buyers. This is particularly true of the 17-24 year olds, the biggest demographic of car buyers to consider new or used with 42% of them open to either. This is your future audience and not one to be ignored as this generation is used to next-day delivery, and getting everything they want immediately, and it’s why 48% of millennials expect to walk in to a dealership and buy there and then.“

The research also revealed that for nearly half of all car buyers their first contact with a dealer is when they walk in, with the primary reason for visiting a showroom being to buy a car retailers need to ensure there is a smooth process in place to achieve this.

The good news is the vast majority of consumers surveyed are able to do just that with 81% revealing they were able to buy their car on the same day. That does, however, leave nearly one in five car buyers unable to complete their deal, with the biggest reason cited that the car wasn’t ready to drive away.

Retailers need to ensure customers can complete their car purchasing process when they walk in, or risk losing a sale, and also provide a seamless and enjoyable purchase experience which starts online. The research discovered the third most important reason given as to why a consumer bought from a given retailer is friendly and courteous staff.

Nick King continues: “Of all the age groups, Millennials are more likely to say they find the car buying process boring, confusing and complicated, and least likely to say they find it exciting, fun and interesting. So there are opportunities for retailers to win here by blending the on and offline retail experience into one seamless process that is enjoyable, quick and easy. Millennials are the most impatient for this to happen as they are the most tech savvy, so there is a huge opportunity for the industry to grab.”

About the Annual Buying Report

Auto Trader commissioned the Annual Buying Report and it was conducted independently by global market research agency GfK.

GfK work with leading brands globally to understand consumer behaviour using representative sample sizes. For this report, GfK contacted 1,000 car buyers who had purchased from retailers who agreed to participate in the survey. GfK then added a further 1,000 car buyers who had purchased recently to ensure the survey size was representative of the national marketplace.

 

About Auto Trader

Auto Trader Group plc is the UK and Ireland’s largest digital automotive marketplace. Auto Trader sits at the heart of the UK’s vehicle buying process and its primary activity is to help vehicle retailers compete effectively on the marketplace in order to sell more vehicles, faster. Auto Trader listed on the London Stock Exchange in March 2015 and is now a member of the FTSE 250 Index.

The marketplace brings together the largest and most engaged consumer audience. Auto Trader has over 90% prompted brand awareness and attracted 59 million monthly cross platform visits in March 2016, with circa 70% of visits coming through mobile devices. More than 80% of all time spent on automotive classified sites is spent on Auto Trader.

The marketplace also has the largest pool of vehicle sellers (listing more than 420,000 cars each day). Over 80% of UK automotive retailers advertise on autotrader.co.uk and around 80% of all used cars sold through the motor trade appear on the site.

For all trade media enquiries, please contact:

Kieren Puffett – PR Director

JJ Marketing

Email: kieren.puffett@jjmarketing.co.uk

Mobile: 07753 830870, Telephone: 01865 343100

Data from the @SMMT shows an 11.3% year-on-year growth in new car registrations in July. Registrations for year currently stand at 828,389, down 41.9% year on year. Find out more about selling brand new cars and vans on Auto Trader https://t.co/9pnuyRUMQI #atinsightoftheday https://t.co/0XltI7iOqO
Thanks to @ClarkRjoclark & @johnfohanlon1 for a fascinating interview. Great to hear such optimism for our industry!
Pre-#COVID19 - John believes their web presence wasn’t geared to help facilitate remote sales but, as a result of the pandemic, they have focussed on enabling more of the car buying journey to take place online - something they will continue to do into the future
John expects a slight softening in the next 2-3 weeks but this will be due to holiday season so no reason to panic – key is to focus on the quarters performance which has been incredibly strong for @WaylandsVolvo
We've been looking forward to this! @ClarkRjoclark has just started our interview with @johnfohanlon1 - sure to be some great insights here https://t.co/3IfhnCO5D4
Don't forget our extra stock offer is still live - contact your account manager for more info https://t.co/RRCO4RghyZ
Our self nomination categories are now open until Friday 4th September. Enter now for your chance to be a Retailer Award winner! You can view the awards and enter at https://t.co/GfRlphxZ4d #ATAwards https://t.co/JpbdNgbTBG
This year's awards will be entirely digital in October with further details coming soon! https://t.co/KH3fMBgG3I
Over to @MarcThornboroug who is going to take us through a plethora of topics inc whats next for the Auto Trader Retailer Awards! #ATAwards
Daily visitor growth to Auto Trader is up 21% compared to this time last year - demand still strong https://t.co/G1qfUdVWDv

Auto Trader Group plc
Registered in England (Company number: 09439967)

Auto Trader Limited
Registered in England and Wales (Company number: 03909628)

Registered address:

1 Tony Wilson Place
Manchester
M15 4FN
VAT number: GB 614 8918 20

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