37 Percent of New-Car Intenders Opting Out of Market Choose to Buy Non-Auto Goods; How Many Buy Used Cars?
There will likely be at least a quarter million new-car intenders this year who decide at the 11th hour not to buy, according to estimates from CNW Research, which studied the reasons these shoppers choose this path.
What the firm found is that the proportion that goes for a used car instead is down marginally from a year ago, but more are deciding to buy something other than a car.
“They aren't postponing the decision, (they are) simply electing to buy something else,” explained CNW president Art Spinella in the July Retail Automotive Summary.
In fact, CNW found that 37.06 percent of these new-car intenders dropping out of the new-car market in the first half of 2013 chose to buy a non-automotive durable good instead. That’s up from 34.12 percent for full-year 2012.
Meanwhile, 5.06 percent opted for a used car instead, off slightly from 5.44 percent in 2012.
Other than choosing to buy something else, the most commonly cited reason for exiting the new-car market was that the shopper’s “existing vehicle has at least a year of service remaining.” CNW said 32.54 percent of respondents cited this reason, up from 31.49 percent last year.
Other reasons included:
— Monthly payment too high (8.8 1 percent)
— (Sticker) price too high (6.14 percent)
— Considered a used vehicle only (5.32 percent)
— Job requirements changed (1.37 percent)
— Household requirements changed (2.47 percent)
— Other (1.23 percent)
Going back to the roughly 37 percent who buy a durable non-auto good, CNW shared the below graph to illustrate how these shoppers are spending their money instead, and how this spending compares to 2006..