Consumer Attitude Survey

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1 Consumer Attitude Survey Spring 2018

2 Consumer Attitude Survey Spring

3 Consumer Attitude Survey Spring 2018 Contents Introduction.. 4 Regional breakdown Consumer views General perceptions.. 6 Awareness of offering... 7 Safety... 8 Use of the internet. 9 Trust Reasons for choosing franchised dealers Facilities expected at a dealership The franchised dealer customer Who s the franchised dealer customer Servicing: perceptions and expectations 14 Consumer buying intentions Car age 15 What fuel?. 16 Barriers to electric cars.. 17 Conclusion

4 Consumer Attitude Survey Spring 2018 Introduction The National Franchised Dealers Association (NFDA) is pleased to present the fifth issue of the Consumer Attitude Survey. The survey is commissioned every six months to research market opinion and explore perceptions towards franchised dealers, independent garages and non-franchised national chains amongst car owners. The study, executed by Public Knowledge, polls 1,000 consumers across the UK in a 15-minute online survey. Public Knowledge considers the results statistically significant with a confidence level of over 99%. The survey is undertaken with five major objectives: Explore current market perceptions of franchised dealers and their competitors Understand current consumer aftersales behaviour Examine factors influencing consumer aftersales decision making Determine consumer opinions of the aftersales offering at franchised dealerships Assess awareness and understanding of the franchised dealership aftersales offering There are three main sections in this issue of the Consumer Attitude Survey report. Initially, we explore the consumer perceptions of the different aftersales service providers across all respondents of the survey. In the second section, we analyse the findings of the survey to understand the profile of those customers who always use franchised dealers. Finally, the report examines the vehicle buying intentions of all respondents and outlines the potential differences in preferences between those who always use franchised dealers for aftersales care and those that use independent garages or high street national chains. The research continues to allow the NFDA to build trends that we hope will be of benefit to all in the industry. Sue Robinson Director, National Franchised Dealers Association 4

5 Consumer Attitude Survey Spring 2018 Regional breakdown The survey is seen as representative of the UK consumer with an even gender split of 51% female and 49% male. The breakdown in location is also reflective of the UK population as shown in figure 1. Figure 1 Scotland, 8% Northern Ireland, 3% North West, 11% North East, 4% Yorkshire, 8% East Midlands, 7% West Midlands, 9% East Anglia, 9% London, 13% Wales, 5% South West, 9% South East, 14% 5

6 Consumer Consumer views Attitude Survey Spring 2018 General perceptions Franchised dealers continue to stand out for their professionalism, knowledge, reputation, customer service and reliability. Positively, the number of respondents that consider franchised dealers as good value for money has increased by 5% and those who think they are convenient by 3%, compared to six months ago. As figure 2b shows, usage of franchised dealers has a significantly positive impact on perceptions. Which of the following words/phrases would you use to describe franchised dealerships, independent garages and high street national chains? Figure 2a Franchised Dealerships Independent Garages National Chains 56% 52% 46% 46% 45% 43% 44% 41% 42% 39% 38% 35% 36% 36% 36% 33% 33% 29% 29% 30% 28% 24% 25% 24% 24% 24% 25% 23% 21% 22% 19% 20% 19% 21% 23% 20% 21% 13% 7% Figure 2b (P2Y = past two years) 55% 44% 51% 51% 36% 34% Used Franchised Dealership P2Y 48% 45% 42% 29% 32% 32% 39% 39% 35% 38% 37% 33% 28% 30% 24% 23% 24% 20% 15% 4% 6

7 Consumer views Attitude Survey Spring 2018 Awareness of offering Awareness levels of the franchised dealers offering continue to experience a positive upward trend and remain particularly high in areas such as buying a new car, manufacturer recalls and warranty work. Approximately a third of the respondents still do not associate franchised dealers with low-value work, however, there have been improvements. In fact, book your car in for an MOT, have new parts such as windscreen wipers fitted and have new tyres fitted, have all seen increases of five percentage points compared to last year s [Spring] survey. Which of the following do you think that you could do at franchised dealerships, independent garages and high street national chains? Figure 3 Franchised Dealerships Independent Garages High street national chain Don't know 90% 85% 84% 79% 84% 79% 79% 82% 79% 58% 84% 84% 85% 80% 79% 77% 78% 73% 73% 71% 70% 70% 67% 67% 62% 63% 43% 7% 3% 15% 9% 7% 35% 20% 5% 10% 7% 32% 2% 2% 26% 21% 15% 2% 2% 2% 3% 2% 7

8 Consumer views Attitude Survey Spring 2018 Safety Franchised dealerships continue to be seen as the safest option for servicing in consumers minds. The main reasons for this are their technical expertise and the modern technical equipment available to a franchised dealer. This percentage is significantly higher for those who have had their car serviced at a franchised dealership in the past two years, 73% vs 41% as figure 5 shows. From a safety viewpoint, which of the following companies do you think it would be safest to get your car serviced by? Figure 4 9% 27% 63% Figure 5 Franchised dealership Independent garage High street national chain 6% 21% 17% 43% 73% 41% Visited Franchised P2Y Not visited P2Y 8

9 Consumer Attitude views Survey Spring 2018 Use of the internet Just over half of all respondents (53%) have researched at least one of the car maintenance services listed. Overall, usage of the internet to research servicing, MOTs and repairs has increased across the past issues of the survey. Interestingly, the use of the internet is more popular amongst younger age groups, men, diesel drivers and those living in urban areas. In the past, have you used the internet to research any of the following for your car? Figure 6 wave 2 wave 3 wave 4 wave 5 50% 49% 50% 47% 34% 35% 31% 31% 28% 26% 24% 25% 25% 22% 22% 20% 20% 16% 16% 18% Tyres Service MOT Repairs None of the above The two main features customers researched on the internet across all categories are cost and location, with reviews and reputation also being an important factor. You said you have used the internet to research [ ], which of the following describes what you researched? Figure 7 Cost Location Appointment booking Reviews/reputation Customer service Offers/vouchers available 90% 78% 80% 74% 68% 65% 68% 53% 45% 40% 40% 36% 35% 38% 33% 33% 36% 31% 22% 20% 22% 19% 18% 20% MOT Service Repairs Tyres 9

10 Consumer Consumer Attitude views Survey Spring 2018 Trust Levels of trust across all engine types increase significantly amongst those who have used a franchised dealer in the past two years. Positively, franchised dealers continue to be seen by all respondents as the most trustworthy to get a hybrid or electric vehicle serviced. For the vehicle engines shown below, who would you trust the most to carry out a service? Figure 8 Diesel Petrol Hybrid Electric 22% 26% 5% 12% 28% 43% 46% 18% 11% 7% 31% 51% 17% 13% 51% 19% 25% 4% 12% 59% 41% 10% 15% 35% 26% 5% 8% 61% 38% 10% 12% 41% Used Franchised P2Y Not used P2Y Used Franchised P2Y Not used P2Y Used Franchised P2Y Not used P2Y Used Franchised P2Y Not used P2Y Franchised dealership Independent garage National chain DK Interestingly, over a third of those who say they do not use franchised dealerships for servicing would nevertheless trust franchised dealers the most for servicing on new engine types, such as electric and hybrid. Figure 9 Electric 41% Hybrid 34% Diesel 18% Petrol 16% 10

11 Consumer views Consumer Attitude Survey Spring 2018 Reasons for choosing franchised dealers The top reasons for choosing franchised dealers continue to be specialism in specific types of cars, knowledge and trust. Encouragingly, the percentage of those who see franchised dealers as value for money has increased by four percentage points compared to one year ago and one percentage point compared to six months ago. Why do you use franchised dealers over other service providers available? What are the benefits to you? Figure 10 60% 54% 50% 40% 30% 20% 10% 0% 42% 41% 40% 36% 32% 30% 30% 24% 20% 20% 20% 17% 17% 17% 15% 13% 12% 8% 11

12 Consumer views Consumer Attitude Survey Spring 2018 Facilities expected at a dealership Over two-thirds of respondents expect a franchised dealership to have customer parking and offer courtesy cars. As figure 11 shows, coffee machine, customer lounge area with TV and seating, while you wait servicing, free Wi-Fi and a website that allows you to book a service represent the other main facilities respondents expect to be provided with. The top five facilities were chosen by a significantly higher proportion of respondents aged over 55 than amongst those under 35. What facilities do you expect a franchised dealer to have? Figure 11 Customer parking Courtesy cars 71% 70% Coffee machine Customer lounge area with TV and seating 59% 62% While you wait servicing Free Wi-Fi Website where I can book a service 49% 49% 48% Facilities to allow you to work while you wait Website where I can buy a car 24% 24% Children s play area 12% Other 1% Not sure 6% None of these 1% 12

13 The Consumer franchised Attitude dealer Survey customer Spring 2018 Who s the franchised dealer customer? The figures below give an insight into the behaviour of the respondents who stated that they always use franchised dealers for aftersales care. 94% 89% Bought their car from a franchised dealership Plan to buy their next car from a franchised dealership 33% 10% Drive a car with less than 10,000 miles on the clock Only 10% drive a car with more than 51,000 miles on the clock 13

14 The Consumer franchised Attitude dealer Survey customer Spring 2018 Servicing: perceptions and expectations 45% 89% 87% Of those who always use franchised dealers have a service plan in place. However, only 20% of those who bought their car from a franchised dealership took out a service plan Were satisfied with their latest experience at a franchised dealership Think it is safest to get their car serviced by a franchised dealer 76% Expect the dealership to have customer parking 59% Expect to find a lounge area in the dealership 55% Expect a while you wait servicing 14

15 Consumer Consumer Attitude buying intentions Survey Spring 2018 Car age Almost four in ten respondents expect the next car they buy to be brand new. The majority of those planning to buy a used car would buy one over a year old. Men (42%) are significantly more likely to buy a new car next than women (32%). Those aged over 55 are significantly more likely to buy a new car next (47%) than those aged under 55 (31%). When considering the next car you will buy, what age is it likely to be? Figure 12 Brand new 37% Under 1 year old 16% 1-3 years old 32% 4-5 years old 7% 5+ years old 3% I m not going to buy another car 5% Those who always use franchised dealers for aftersales care 62% of those planning to buy another car, expect it to be brand new. The vast majority of them, 89%, plans to buy their next car from a franchised dealer: 78% from a dealership, 11% from a dealer s website. 15

16 Consumer buying Attitude intentions Survey Spring 2018 What fuel? Those living in a city or very large town are significantly more likely to buy a hybrid car next. Those who say they always use an independent or high street chain for their servicing are more likely to be planning to buy a diesel car next (16%) than those who always use franchised dealerships (11%). A significantly higher proportion of diesel drivers (15%) than petrol drivers (10%) plan to buy a hybrid car next. 55% of petrol drivers plan to buy a petrol car as their next vehicle, while only 33% of diesel drivers plan to buy a diesel car next. 31% are unsure of their next car purchase. Will the next car you buy be? Figure 13 Petrol 41% Hybrid 13% Diesel 12% Plug in hybrid 2% Pure electric 1% Don t know 31% Those who always use franchised dealers for aftersales care For their next car: 40% plan to buy petrol, 14% hybrid and 11% diesel. Currently, 64% of them own a petrol car, 33% drive diesel and 3% have a hybrid. 16

17 Consumer Attitude buying intentions Survey Spring 2018 Barriers to electric cars Access to charging and battery range are considered barriers to electric car purchases by almost as many as those who consider cost a barrier. Only 8% of respondents perceive no barriers towards buying an electric car. Those who drive diesel are significantly more likely to consider battery range as a barrier (58%) than those who drive petrol (48%). Half of those who consider range an issue (50%) would like to be able to drive over 250 miles before recharging. Are there any barriers to you buying an electric car? Figure 14 59% 53% 52% 5% 9% 1% 8% Cost of purchasing a vehicle Access to charging Battery range Other barriers Not sure I already own an electric car No there are no barriers to me buying an electric car You indicated charging is an issue, why is this? Figure 15 82% 56% 45% 4% 2% Lack of charging points in public places (e.g. car parks in shopping centres, stations) Lack of off street parking at home to install a charging point Lack of charging points at work Other Not sure Those who always use franchised dealers for aftersales care Users of franchised dealerships are significantly more likely to consider access to charging and battery range as barriers to purchasing an electric car than those who have not used a franchised dealership in the past two years, respectively 56% vs 48% and 55% vs 46%. 17

18 Consumer Attitude Survey Spring 2018 Conclusion This is the fifth issue of the NFDA Consumer Attitude Survey which was launched two years ago to provide an insight into the franchised dealer offering by giving trends on consumers perceptions of the sector. The majority of respondents continue to see franchised dealers as professional, knowledgeable and reputable. Positively, perceptions surrounding value for money has improved compared to the two previous issues of the survey. In general, perceptions of franchised dealers see a significant boost across all categories when the respondent has used a franchised dealership for aftersales in the past two years. Notably, franchised dealers continue to be seen as the safest and the most trustworthy, in particular, in respect to electric and hybrid cars. Our findings show that the majority of those who always use franchised dealers for aftersales care own a car with low mileage which, in most of the cases, they purchased from a franchised dealership (94%). Nearly four in five, expect a dealership to have a customer parking, while just under two-thirds expect a lounge area and more than half expect while you wait servicing. In this edition of the survey, we have analysed for the first time respondents buying intentions, including the age and the fuel type of their next car. More than one in three consumers (37%) plan to buy a brand-new car, whilst a significant proportion (32%) intends to buy a 1-3 years old car. Interestingly, amongst those who always use franchised dealers for aftersales care, a very high percentage (62%) of those planning to buy another car expect it to be brand new. Finally, we have analysed what are, in consumers minds, the most significant barriers to purchasing an electric car. Unsurprisingly, cost, access to charging and battery range were the most significant obstacles highlighted by respondents. Half of those who see range as a barrier, would like to be able to drive more than 250 miles before recharging. This data is gathered to present an overview of the franchised dealers environment in the UK and help dealers understand consumers perceptions. This will continue to help dealers target specific areas of their aftersales businesses and ensure they can provide the best possible experience to the consumer. We look forward to presenting our next issue of the Consumer Attitude Survey in Autumn

19 The National Franchised Dealers Association (NFDA) represents franchised car and commercial vehicle retailers in the UK For more information, please visit: For all media enquiries, please contact:

20 201 Great Portland Street, London, W1W 5AB Tel:

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