Despite the credit crunch and the January figures showing that car production is down by 58.7%, demand for used premium and luxury vehicles is rising, according to new data from Auto Trader, the UK’s no 1 motoring website and magazine.
Sharp rises in vehicle depreciation and slow sales have pushed down used car prices in recent months, making many vehicles more affordable than ever before. Auto Trader has seen huge growth in searches for cars in the Luxury segment, up by a staggering 101% in January 2009 from January 2008, as well as Luxury Sports cars (up 54%) and SUVs (up 54%).
Whilst mortgage repayments have plummeted due to interest rate cuts, petrol prices have stabilised and car prices have dropped, Auto Trader has seen a huge increase in demand and has recorded an unprecedented number of motorists to its website in January 2009, which topped 10.3 million visitors, up by 20% on January 2008.
Auto Trader’s new data suggests that those motorists who have the money as now looking for a bargain in what have traditionally been very expensive car segments. The increase in interest for Luxury cars has caused a rise of nearly 150,000 extra searches for the BMW 7 Series (up 68%) and 124,000 for the Mercedes Benz S Class (up 65%).
Fig One: Jan 08 vs Jan 09 Search Data – Executive, Luxury, Luxury Sports, MPV and SUV:
| Executive | Luxury | Luxury Sports | MPV | SUV | |
|---|---|---|---|---|---|
| Jan 08 | 3,155,448 | 763,417 | 3,592,569 | 2,413,901 | 5,520,420 |
| Jan 09 | 4,703,678 | 1,535,983 | 5,529,760 | 3,362,407 | 8,497,457 |
| YOY | 49.07% | 101.20% | 53.92% | 39.29% | 53.93% |
Fig Two: Jan 08 vs Jan 09 Search Data – City, Lower Medium, Small Sports, Supermini, Upper Medium:
| City Car | Lower Medium | Small Sports | Supermini | Upper Medium | |
|---|---|---|---|---|---|
| Jan 08 | 1,203,809 | 13,023,161 | 3,550,536 | 9,547,655 | 10,616,538 |
| Jan 09 | 1,541,661 | 16,744,635 | 4,521,829 | 11,088,241 | 14,559,196 |
| YOY | 28.07% | 28.58% | 27.36% | 16.14% | 37.14% |
Matt Thompson, Group Marketing Director at Auto Trader, comments: “There is so much doom and gloom right now, it is good to talk about an upside for a change - our website shows there has never been a better time to buy a car and that motorists are beginning to take advantage. There is talk of a ‘sale of the century’ as used cars become more affordable, plus manufacturers and dealers are also offering great discounts, finance schemes and incentives for new cars.
“We have seen amazing offers across all types of used vehicles on Auto Trader, with savings of up to £5,000 for a Suzuki Swift 1.5 litre GLX – we have great examples online for an ‘06’ plate with 50,000 miles on the clock, advertised for just £4,995 and savings of over £9,000 for a ‘55’ plate Seat Leon – we have found TFSI Sport model advertised for just £6,705, despite this costing in excess of £16,000 new.
“But if it is a new car that motorists are looking for, there are still some fantastic bargains available as manufacturers and dealers are slashing thousands of pounds off old models to make way for new cars, such as the revamped Ford Fiesta. The average saving is £3,337 in some of the best new car offers available on Auto Trader currently. There are also great finance offers from manufacturers and dealers available at the moment, such as PCP and special loan arrangements, so there really isn’t a better time to buy a car.
“At Auto Trader, we are committed to helping motorists save money on the annual cost of motoring. Our Cut Car Costs initiative aims to help every motorist save up to £500 on the annual cost of motoring, as well as providing money-saving tips, advice and exclusive discounts – all available on our website.”
Auto Trader’s new Cut Car Costs campaign – http://www.autotrader.co.uk/CARS/cut_car_costs/cut_car_costs.jsp – is a free of charge service that aims to help every motorist save money on the annual cost of motoring.
Auto Trader is the world of cars made easy – from new and used cars to insurance and finance, along with advice and solutions to help reduce the cost of motoring.
- Ends -
Notes to Editor:
• Auto Trader is the UK’s no 1 motoring website and magazine, with over 10.3 million monthly unique users, who carry out over 93 million searches on new and used vehicles*. Auto Trader also publishes 13 regional magazines across the UK and the Republic of Ireland. The brand is building a competitive position across all effective channels including the online, magazine and mobile. (*Source: Auto Trader Audit, March 2008).
• Auto Trader is owned by Trader Media Group, one of Europe’s largest specialist multi-media groups and provider of market leading websites and their associated magazines, including Top Marques, Bike Trader, Truck & Plant Trader, Ad Trader, Motorhome and Caravan Trader, Farmers Trader – all with the largest reach in their sectors, through web visitors and magazine readership.
• Trader Media Group operates in the UK, Ireland, Italy and South Africa. The Group is looking to expand on its winning formula: giving trade customers the opportunity to choose all effective channels to market; building the service and relationship with dealers and manufacturers; and strengthening its portfolio of automotive and specialist classified titles.
• Trader Media Group is jointly owned by Guardian Media Group and Apax Partners
For further information, please contact:
Karen Hughes/Caroline Burnell
The Drum Consultancy
Tel: 020 7025 8044
Fax: 020 7025 8100
Email: caroline@thedrumconsultancy.co.uk
