Car buying comparison site www.carwow.co.uk carried out new research in a bid to determine how the outbreak of the COVID-19 pandemic has affected budgets and plans when it comes to vehicle purchases. 69% of British drivers say they would be more interested in changing their cars if coronavirus led to deeper, better deals, and evidence from the industry is coming through suggesting that those deals are becoming available.
Analysis determined that 45% of in-market car buyers on the carwow site have no plans to review their budgets when it comes to purchasing a new vehicle, despite many consumers feeling the financial pinch in the current climate. What’s more, the majority (75%) had not put their plans to purchase on hold, highlighting the opportunity available to dealers and manufacturers.
One in twenty (5%) potential buyers on site even suggested that their car budget has increased in light of recent events, possibly due to the impact of savings made through cancelled plans and social distancing.
For those who are still looking and able to buy, manufacturers are already clearly demonstrating that they are shifting their approach to attract sales, with strong deals available even on the newest cars to market.
For instance, VW’s all-brand new Golf Mk8 is now supported with a £1250 Finance Deposit allowance with 4.9% APR low interest finance option (increased further since the recent launch) or Skoda’s new SUV Kamiq is available with up to £1,750 deposit contributions already and facelifted A3 Sportback with up to £3,000 contributions from the manufacturers.
Toyota has decided to extend and enhance their own scrappage scheme with additional customer offers up to £4,000 (depending on the model – for volume models, enhancement are around £2,000 range) and Volvo has increased the support in Q2 almost across the board, meaning customers could benefit from an enhanced central discounts up to £3,000 for their popular XC60 SUV model. Similar trend on the enhancements also seen on the popular premium SUV Audi Q3, now available with up to £3,500 (for new customers) and up to £4,500 (for loyal Audi customers) finance deposit contribution discounts.
When comparing average spends before and after quarantine measures were introduced, the figure has not shifted according to carwow sales data; sitting at around £30,000 both prior to, and following the 13th March 2020, also supporting that those who are in-market are still committed to getting the best model for their needs.
Hasan Nergiz, Director of OEM said, “Now that we’ve officially moved into Q2, we have had first sight of some promising and strong offers, including discounts rarely seen on some of the newest and most popular models, in an effort to keep a steady pipeline of sales in these unprecedented times for the automotive industry.
“Whereas offers will vary brand by brand, model by model and dealer by dealer, this does mean there are real opportunities to get a good deal from the significant amount of customers still in-market for a new car who haven’t set their sights lower despite the circumstances.
“Buyers are out there, and manufacturers and dealerships are really working to make sure they have access to the cars that they need, through deals, distant sales and stock focus-based opportunities. At times like these, carwow is a vital tool in connecting consumers to the right deal, and dealerships to consumers with a high intent to buy.”