"Automobiles are big-ticket items, and consumers are looking for value in a competitive market," said Gary Drenik, president and CEO of BIGresearch. "What they're saying is that one way manufacturers can create desirable value is by continuing to offer financing options and incentives. It's becoming expected."
As for the next six months, 10.2 percent of consumers said they are planning to purchase a car in that time frame vs. 9.7 percent in November. The top five makes currently owned by people planning to purchase a new car are Ford, Chevy, Dodge, Honda and Nissan.
Consumers who purchased a vehicle because financing deals and incentives were too good to pass up are also planning to spend more or the same than last year in the next 90 days across every retail category. In fact, 30 percent of those who took advantage of financing deals in the past six months said they'd spend more in the next 90 days than they did last year on CDs, DVDs, videos and books.
Motivations for Last Vehicle Purchase
|Financing deals/incentives were too good to pass up||23.2%|
|My lease was up||6.1%|
|My old car had high mileage||35.8%|
|My old car was always in the repair shop||23.0%|
|I was tired of my old car; I wanted something new||23.7%|
|wanted a vehicle with new "tech toys (GPS, DVD, etc.)||22%|
|I wanted a vehicle with better gas mileage||14.3%|
|I wanted a vehicle with better safety features||14.6%|
|I like the style of the new models||13.6%|
Make of (Car Buyers) Vehicle Most Often Driven
Cost of Vehicle Most Recently Purchased
|Less than $10,000||32.4%|
|$10,001 to $15,000||18.9%|
|$15,001 to $20,000||18.8%|
|$20,001 to $25,000||13.1%|
|$25,001 to $30,000||9.2%|
|$30,001 to $40,000||6.5%|
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