According to a new study, Car dealers increasingly have to adapt to changes in society.
The research from Experian shows that those selling cars now need to consider different demographics when marketing their products as societal norms change.
Greater incidences of divorce, single parentage and second marriages mean that lifestyles across age groups are much less uniform than they were in the past. This means that age profiling is bound to be less effective than it was for earlier generations.
There are now few households where men alone have the sole task of deciding what car is to be purchased. Women now have a bigger influence and children over the age of eight are also consulted more for their opinion, which was never the case in the past.
Wealth is another key factor, with consumers more affluent than ever before. The average income is now 50 per cent higher than it was 15 years ago. Yet, according to Future Foundation’s research, despite having more money consumers are more focused than ever before on price expecting higher standards and greater value for money. With the average income expected to increase by 50 per cent over the next 15 years, the industry can expect consumer demands to intensify.
The perception of cars has also changed. In the past, cars were considered a luxury commodity, only bought by those who could afford them. However, almost anyone can buy a car these days and with more and more people owning cars, they are no longer classed as luxury items.
The Internet is gaining increasing influence over car purchasing, if Experian’s research is to be believed. Over 60 per cent of consumers compare prices online and car loans can now be taken out over the Internet .
"The trends highlighted by Future Foundation show why there is a real need for motor retailers to become more adept at running targeted marketing campaigns," Experian motor division’s managing director, Rob Whalley, said.
"With the level of importance consumers place on the internet, dealers need to maximise their exposure in this area, not only by making their own site as user friendly as possible, but by also linking into other relevant external sites and listing their stock," he added.
"With car prices coming down, endless lines of special offers both in the used and new car markets and an environment where there are more cars than consumers, dealers need to maximise the profitability of both new and used car sales ."
