CARZONE MOTORING REPORT - Examining trends in the Irish Motoring Industry

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CARZONE MOTORING REPORT - Examining trends in the Irish Motoring Industry
CARZONE
MOTORING
REPORT
Examining trends in the
Irish Motoring Industry

                          JULY 2018
CARZONE MOTORING REPORT - Examining trends in the Irish Motoring Industry
INTRODUCTION
     Welcome to the latest                            and electric car technology. On a lighter
                                                      note, the survey explores their opinion on
     edition of the Carzone                           the Irish driving test and asks them does
                                                      registration plate snobbery really exist?
     Motoring Report, an
     established authority                            Over 77 million searches took place on
                                                      Carzone in the first six months of 2018, which
     on current trends and                            reveals the most popular makes and models
     consumer preferences in                          that consumers searched for, trending fuel
                                                      types and lots more. Irish motorists are
     the Irish motoring industry.                     seemingly more open to electric and hybrid
                                                      cars than ever before, which is evident in
     To compile this report, we surveyed over
                                                      the growing interest for these types of cars
     1,600 Irish motorists, harnessed data from
                                                      for sale on Carzone, while the most popular
     Carzone’s online platforms and explored the
                                                      models on site make for an interesting read.
     latest Irish vehicle transaction figures from
     Cartell.ie. This makes the Carzone Motoring
                                                      Car transaction data from Cartell.ie shows
     Report the most comprehensive report of
                                                      that January to June was a challenging period
     its kind in the Irish motoring industry, and
                                                      for the Irish motoring industry, with new car
     it offers a detailed glimpse into emerging
                                                      sales down in the region of 5% year-on-year.
     trends in the Irish automotive marketplace.
                                                      Used car transactions declined by around
                                                      4% in the first five months of 2018, while
     Consumers surveyed in this edition of the
                                                      there was a 13% increase in cars imported
     report were quizzed on a wide range of
                                                      from the UK into Ireland during the period.
     topics, including the car purchase journey,
     top financial concerns and the role of the car
                                                      We hope you enjoy the latest edition
     in day-to-day family life. Looking to 2019,
                                                      of the report and find it useful as we
     the survey exposes interesting insights on
                                                      enter the second half of the year and
     how they plan to purchase their next car,
                                                      approach the 2019 buying period.
     along with their opinions on the fuels of
     the future and the steady shift to hybrid

       1,600                                     IRISH MOTORISTS
                                                 SURVEYED

2|   Motoring Report
CARZONE MOTORING REPORT - Examining trends in the Irish Motoring Industry
+77 MILLION
  SEARCHES

    carried out by engaged car
     buyers on Carzone from
       January to June 2018

In association with

                                 3
CARZONE MOTORING REPORT - Examining trends in the Irish Motoring Industry
BUYING A CAR

     37%                of Irish households
                        have one car

     45%                of Irish households
                        have two cars

     17%                of Irish households have
                        three or more cars

     1 IN 4
     change their car
                                                                5
     every 5 years

     30%
     spent €10k - €20k on
                                   21%
                                   spent between
                                                   3%
                                                   spent over €40k
     their last car                €20k - €40k

4|    Motoring Report
HALF                                          1 IN 4
                                                       who spent between
                                                       €10k - €20k on their
                                                       last car took out a
                                                       Credit Union loan
of those who spent
up to €10k on their
last car used                                 72%      who spent over €20k
                                                       on their last car used
their savings                                          a financing option
                                                       such as PCP

                      WHY PEOPLE SOLD THEIR CAR:

   Wanted a                   Wanted a more         Needed a larger car
   newer car                   reliable car         for a growing family

39%                    purchased their last car
                       from an independent dealer

38%                    purchased from a
                       franchised dealer

14%                    purchased from
                       a private seller

                                                                                5
FAMILY                Starting a family is often a catalyst for changing a car, with
                           cost, car safety and size among the top concerns for growing

     & CARS                families searching for their next car. Interestingly, when it
                           comes to choosing a car, 58% of parents make the purchasing
                           decision together. SUVs are becoming increasingly-popular,
                           and families with more than three children are more likely to
                           drive an SUV due to the increased practicality that they offer.
                           The humble hatchback remains the most popular car for Irish
                           parents, closely followed by the saloon. Between commutes,
                           school runs and hobbies, parents are spending more time than
                           ever before in their car, with over 50% of those surveyed saying
                           they drive for over two hours each day.

                        MOST IMPORTANT FACTORS WHEN
                           CHOOSING A FAMILY CAR:

                                                31%                           20%
             38%

                 Cost                  Safety                                Size

6|   Motoring Report
Parents with
MORE THAN
THREE CHILDREN
are more likely to drive an SUV

OVER HALF                    The most popular cars for parents are:
                              Hatchback                26%
of parents spend more than
2 hours driving each day
                              Saloon                  25%

58%
of parents make big
purchasing decisions
together

                                                                      7
Search data January - June 2018
     As ever, search data from Carzone demonstrates             There are so many different car colours to choose
     how buyer preferences are shifting with the arrival        from, however black and white remain the staple
     of new models and technology in the motoring               choices, accounting for over 62% of searches on
     marketplace. The Volkswagen Golf remains a staple          Carzone. Searches for electric cars continue to grow
     choice with motorists of all ages in Ireland, and it was   with interest in Elon Musk’s aspirational Tesla Model
     the most-searched model on Carzone and indeed the          S. Ireland’s best-selling electric car, the Nissan LEAF
     third best-selling new car in Ireland during the first     follows closely in second place. Lexus leads the way
     six months of 2018. Carzone users are an aspirational      for hybrid car searches with its luxurious is300h,
     bunch, with Audi, BMW and Mercedes-Benz ranking            along with the Mitsubishi Outlander plug-in hybrid
     among the highest searched-for car brands on the           SUV and Toyota’s best-selling Prius. The most-
     site, while the most searched-for new car on site is       researched new models on Carzone include the Audi
     the desirable 182 Volkswagen Tiguan SUV.                   A4, Hyundai Tucson and BMW’s 5 Series.

     Most-searched for new car in Ireland                                                                   MOST
                                                                                                         RESEARCHED
     2018 VOLKSWAGEN TIGUAN                                                                               NEW CARS

     IN WHITE
                                                                                                             Audi A4
                                                                                                         Hyundai Tucson
                                                                                                          BMW 5 Series

8|   Motoring Report
Nationwide              Nationwide               Nationwide
MOST POPULAR             MOST POPULAR            MOST POPULAR
    MAKE                    MODEL                  ELECTRIC

        BMW                Volkswagen Golf            Tesla Model S
        Audi            Mercedes-Benz E-Class          Nissan Leaf
 Mercedes-Benz                 Audi A6                   BMW i3
   Volkswagen                  Audi A4                Hyundai Ioniq
        Ford            Mercedes-Benz C-Class          Renault Zoe
      Toyota                 Ford Focus            Volkswagen e-Golf
      Hyundai               BMW 5 Series          Renault Fluence Z.E.
      Nissan              Volkswagen Passat          Renault Twizy
       Volvo                Nissan Qashqai
       Skoda                   Audi A3

      Nationwide               Nationwide              Nationwide
MOST POPULAR              MOST POPULAR           MOST POPULAR
   DIESEL                    PETROL                 HYBRID

Mercedes-Benz E-Class      Volkswagen Golf            Lexus IS300h
    BMW 5 Series             Ford Fiesta             Lexus CT200h
       Audi A6              BMW 3 Series        Mitsubishi Outlander PHEV
       VW Golf             Volkswagen Polo            Toyota Prius
      Audi A4                Ford Focus            Toyota Auris Hybrid
Mercedes-Benz C-Class        Honda Civic             Lexus RX450h
 Volkswagen Passat      Mercedes-Benz C-Class    Mercedes-Benz E-Class
    BMW 3 Series             Porsche 911             Lexus NX300h
     Ford Focus                Fiat 500            Toyota C-HR Hybrid
       Audi A5               Toyota YARIS          Porsche Panamera

                                                                            9
ALTERNATIVE FUELS

       Almost

       TWO THIRDS
       of people plan to purchase
       an electric or hybrid car
       in the near future

       1 IN 10                      don't know the difference between
                                    electric and hybrid cars

       40%                          of people don’t know where their
                                    closest electric charging station is

10 |    Motoring Report
TOP REASONS FOR PURCHASING AN
           ELECTRIC OR HYBRID CAR

40%
Better for the
                            45%
                            Lower running
environment                 costs

       TOP REASONS FOR NOT PURCHASING
          AN ELECTRIC OR HYBRID CAR

25%
Fear of the unknown
                            16%
                            Cost

                                            11
FUEL               Irish motorists are more open to hybrid and electric cars than
                          ever before, and this is reflected in increasing searches for

       OF THE             these cars on Carzone thus far in 2018. Over 90% of survey
                          respondents currently drive either a diesel or petrol car,

       FUTURE             however two thirds of those surveyed plan to purchase a
                          hybrid or electric car in the future. Respondents listed lower
                          running costs and taking care of the environment as their main
                          reasons for considering an electric or hybrid car, however one
                          in four listed fear of the unknown as their main reason for not
                          purchasing one.

       DIESEL                  PETROL                            ELECTRIC/
                                                                 HYBRID

       54% 44% 2%
       own a diesel car        own a petrol car                  own an electric/
                                                                 hybrid car
       86% chose diesel     46% chose petrol
       due to lower running due to the lower                     56% chose electric/
       costs                purchasing price                     hybrid due to lower
                                                                 running costs
12 |   Motoring Report
BUYING             The number of cars being imported from the UK into Ireland
                   continues to rise, with a 13% year-on-year increase during the

FROM               first half of 2018. This is largely due to a favourable Sterling-to-
                   Euro rate due to ongoing BREXIT negotiations, and 55% of our

THE UK             survey respondents have considered purchasing a car from the
                   UK at some stage due to the potential savings on offer. That
                   said, almost half of respondents feel the process of purchasing
                   a car in the UK is simply too much hassle.

1 IN 2
have considered
purchasing a car
from the UK                                       1MAUK C3R

46%
feel it was too
                                                 59%
                                                 would consider
much hassle to                                   buying in the
purchase a car                                   UK because of
from the UK                                      the price

                                                                                          13
PLANNING AHEAD

       38%
       plan to purchase a car in
                                   HALF
                                   plan to purchase a car
       the next year               under two years old

       3 IN 5                       29%
       intend to trade their        plan to sell their car in the
       current car in               next year

14 |    Motoring Report
OVER
HALF
plan to spend more than
€10k on their next car

69%                  would travel more than
                     2 hours to purchase a car

               THE POWER OF THE
              REGISTRATION PLATE

  39%           prefer a registration plate from the
                county they are from

  ALMOST       feel registration plates from different
  1 IN 2       counties impact the value of the car

                                                         15
MONEY                Over six in ten of those surveyed said their car running costs
                            have increased in the last year, with rising insurance costs

       MATTERS              and increasing fuel prices cited as the main reasons why.
                            Although insurance comes out as the top cost in the survey,
                            64% have not switched insurance providers in the last year,
                            opting to stay with their current provider. 41% of those
                            surveyed said they spend between €100 and €200 running
                            their car each month, while almost one third spend over €250.

       61%
       say their running costs
       have increased in the past year

                             Top 3 financial concerns:

         61%

         INSURANCE COSTS               FUEL COSTS                 OTHER SERVICING COSTS

16 |   Motoring Report
41% 29%
spend between          spend over €250
€100 - €200 on         on running costs
running costs per      per month                      AIR
                                                         S
                                                   E P
month                                            R

1 IN 3
                    insurance premiums have decreased or not changed
                    at all in the past 12 months

2 IN 3
                    have not switched insurance providers in the
                    past 12 months

98%
who switched providers recently
shopped around for a more
competitive quote

                                                                       17
BUYING                     While Irish motorists are becoming more comfortable with
                                  the idea of purchasing a car online, only 13% would pay the full

       ONLINE
                                  cost price in this way. This is because they would prefer to test
                                  drive and see the car in person, before committing to the full
                                  purchase. Upon finding their next car however, 77% of Irish
                                  motorists would pay a deposit of up to €1000 online to reserve it.

       1 IN 10
       would pay up to €1000
       deposit online for a car

       38%               would pay a deposit
                         for a car online              13%              would pay for a car in
                                                                        full online

                         Top 3 reasons for not buying a car online:

       1.        Too risky

       2.        Prefer to test drive it first

       3.        Prefer to see the car in person

18 |   Motoring Report
TESTING TIMES

55%
feel that there should be
                                57%
                                who have a provisional
a mandatory retest for          licence have renewed it
everyone over 70                more than 3 times

62%
who took their driving test
                                58%
                                who took their driving test
more than 10 years ago passed   within the past 5 years took
it the first time around        2 or more attempts to pass
                                their test
 AS SE D !
P
                                X X
                                                               19
JULY 2018
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