CARZONE MOTORING REPORT
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1 CARZONE MOTORING REPORT Examining trends in the Irish Motoring Industry JULY 2018
2 INTRODUCTION Welcome to the latest edition of the Carzone Motoring Report, an established authority on current trends and consumer preferences in the Irish motoring industry. To compile this report, we surveyed over 1,600 Irish motorists, harnessed data from Carzone s online platforms and explored the latest Irish vehicle transaction figures from Cartell.ie. This makes the Carzone Motoring Report the most comprehensive report of its kind in the Irish motoring industry, and it offers a detailed glimpse into emerging trends in the Irish automotive marketplace. Consumers surveyed in this edition of the report were quizzed on a wide range of topics, including the car purchase journey, top financial concerns and the role of the car in day-to-day family life. Looking to 2019, the survey exposes interesting insights on how they plan to purchase their next car, along with their opinions on the fuels of the future and the steady shift to hybrid and electric car technology. On a lighter note, the survey explores their opinion on the Irish driving test and asks them does registration plate snobbery really exist? Over 77 million searches took place on Carzone in the first six months of 2018, which reveals the most popular makes and models that consumers searched for, trending fuel types and lots more. Irish motorists are seemingly more open to electric and hybrid cars than ever before, which is evident in the growing interest for these types of cars for sale on Carzone, while the most popular models on site make for an interesting read. Car transaction data from Cartell.ie shows that January to June was a challenging period for the Irish motoring industry, with new car sales down in the region of 5% year-on-year. Used car transactions declined by around 4% in the first five months of 2018, while there was a 13% increase in cars imported from the UK into Ireland during the period. We hope you enjoy the latest edition of the report and find it useful as we enter the second half of the year and approach the 2019 buying period. 1,600 IRISH MOTORISTS SURVEYED 2 Motoring Report
3 +77 MILLION SEARCHES carried out by engaged car buyers on Carzone from January to June 2018 In association with 3
4 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 every 5 years 5 30% spent 10k - 20k on their last car 21% spent between 20k - 40k 3% spent over 40k 4 Motoring Report
5 HALF of those who spent up to 10k on their last car used their savings 1 IN 4 72% who spent between 10k - 20k on their last car took out a Credit Union loan who spent over 20k on their last car used a financing option such as PCP WHY PEOPLE SOLD THEIR CAR: Wanted a newer car Wanted a more reliable car Needed a larger car for a growing family 39% 38% 14% purchased their last car from an independent dealer purchased from a franchised dealer purchased from a private seller 5
6 FAMILY & CARS Starting a family is often a catalyst for changing a car, with cost, car safety and size among the top concerns for growing 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: 38% 31% 20% Cost Safety Size 6 Motoring Report
7 Parents with MORE THAN THREE CHILDREN are more likely to drive an SUV The most popular cars for parents are: OVER HALF Hatchback 26% of parents spend more than 2 hours driving each day Saloon 25% 58% of parents make big purchasing decisions together 7
8 Search data January - June 2018 As ever, search data from Carzone demonstrates how buyer preferences are shifting with the arrival of new models and technology in the motoring marketplace. The Volkswagen Golf remains a staple choice with motorists of all ages in Ireland, and it was the most-searched model on Carzone and indeed the third best-selling new car in Ireland during the first six months of Carzone users are an aspirational bunch, with Audi, BMW and Mercedes-Benz ranking among the highest searched-for car brands on the site, while the most searched-for new car on site is the desirable 182 Volkswagen Tiguan SUV. There are so many different car colours to choose from, however black and white remain the staple choices, accounting for over 62% of searches on Carzone. Searches for electric cars continue to grow with interest in Elon Musk s aspirational Tesla Model S. Ireland s best-selling electric car, the Nissan LEAF follows closely in second place. Lexus leads the way for hybrid car searches with its luxurious is300h, along with the Mitsubishi Outlander plug-in hybrid SUV and Toyota s best-selling Prius. The mostresearched new models on Carzone include the Audi A4, Hyundai Tucson and BMW s 5 Series. Most-searched for new car in Ireland 2018 VOLKSWAGEN TIGUAN IN WHITE MOST RESEARCHED NEW CARS Audi A4 Hyundai Tucson BMW 5 Series 8 Motoring Report
9 Nationwide MOST POPULAR MAKE Nationwide MOST POPULAR MODEL Nationwide MOST POPULAR ELECTRIC BMW Audi Mercedes-Benz Volkswagen Ford Toyota Hyundai Nissan Volvo Skoda Volkswagen Golf Mercedes-Benz E-Class Audi A6 Audi A4 Mercedes-Benz C-Class Ford Focus BMW 5 Series Volkswagen Passat Nissan Qashqai Audi A3 Tesla Model S Nissan Leaf BMW i3 Hyundai Ioniq Renault Zoe Volkswagen e-golf Renault Fluence Z.E. Renault Twizy Nationwide MOST POPULAR DIESEL Nationwide MOST POPULAR PETROL Nationwide MOST POPULAR HYBRID Mercedes-Benz E-Class BMW 5 Series Audi A6 VW Golf Audi A4 Mercedes-Benz C-Class Volkswagen Passat BMW 3 Series Ford Focus Audi A5 Volkswagen Golf Ford Fiesta BMW 3 Series Volkswagen Polo Ford Focus Honda Civic Mercedes-Benz C-Class Porsche 911 Fiat 500 Toyota YARIS Lexus IS300h Lexus CT200h Mitsubishi Outlander PHEV Toyota Prius Toyota Auris Hybrid Lexus RX450h Mercedes-Benz E-Class Lexus NX300h Toyota C-HR Hybrid Porsche Panamera 9
10 ALTERNATIVE FUELS Almost TWO THIRDS of people plan to purchase an electric or hybrid car in the near future 1 IN 10 40% don't know the difference between electric and hybrid cars of people don t know where their closest electric charging station is 10 Motoring Report
11 TOP REASONS FOR PURCHASING AN ELECTRIC OR HYBRID CAR 40% Better for the environment 45% Lower running costs TOP REASONS FOR NOT PURCHASING AN ELECTRIC OR HYBRID CAR 25% Fear of the unknown 16% Cost 11
12 FUEL OF THE FUTURE Irish motorists are more open to hybrid and electric cars than ever before, and this is reflected in increasing searches for these cars on Carzone thus far in Over 90% of survey respondents currently drive either a diesel or petrol car, 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% own a diesel car 86% chose diesel due to lower running costs 44% own a petrol car 46% chose petrol due to the lower purchasing price 2% own an electric/ hybrid car 56% chose electric/ hybrid due to lower running costs 12 Motoring Report
13 BUYING FROM THE UK The number of cars being imported from the UK into Ireland continues to rise, with a 13% year-on-year increase during the first half of This is largely due to a favourable Sterling-to- Euro rate due to ongoing BREXIT negotiations, and 55% of our 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 much hassle to purchase a car from the UK 59% would consider buying in the UK because of the price 13
14 PLANNING AHEAD 38% plan to purchase a car in the next year HALF plan to purchase a car under two years old 3 IN 5 intend to trade their current car in 29% plan to sell their car in the next year 14 Motoring Report
15 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% ALMOST 1 IN 2 prefer a registration plate from the county they are from feel registration plates from different counties impact the value of the car 15
16 MONEY MATTERS Over six in ten of those surveyed said their car running costs have increased in the last year, with rising insurance costs 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 % 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
17 41% 29% spend between on running costs per month spend over 250 on running costs per month REPAIRS 1 IN 3 2 IN 3 insurance premiums have decreased or not changed at all in the past 12 months have not switched insurance providers in the past 12 months 98% who switched providers recently shopped around for a more competitive quote 17
18 BUYING ONLINE While Irish motorists are becoming more comfortable with the idea of purchasing a car online, only 13% would pay the full 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. 77% 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
19 TESTING TIMES 55% feel that there should be a mandatory retest for everyone over 70 57% who have a provisional licence have renewed it more than 3 times 62% who took their driving test more than 10 years ago passed it the first time around PASSED! 58% who took their driving test within the past 5 years took 2 or more attempts to pass their test X X 19
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