What to buy next?

The number of motorists who think they or a family member will ‘certainly’ or ‘quite likely’ buy a used car in the next 12 months, dropped two points in this year’s survey to 14%.

Seven out of 10 car owners plan to buy a used car next time they change, while the number of motorists thinking of buying a nearly-new car dropped one point to 6%, compared with 9% two years ago.

The number of motorists inclined to buy a used diesel has fallen from 28% to 25% year on year – although this will be influenced by the growing number of diesel-engined cars entering the used market over the next few years.

Car ownership patterns changing

The BCA research shows that the economic downturn has had a marked impact on the pattern of UK car ownership.

In 2011 5% fewer families (72%) have at least one car, compared to 2010. The biggest drop is in the number of two-car households which has fallen 4% year on year to 21%.

“What this data suggests is that households have been making some hard decisions about what vehicles they need to stay mobile”, said Gannon.

“With a drop in two-car families, this means the remaining car will have to ‘work’ that much harder.

“We are likely to see households keeping cars for longer and not changing them until mileages are much higher.”

The BCA report also suggests that families will be looking for smaller, more practical and economic vehicles as household budgets get squeezed.

Petrol power remains preferable for most buyers when considering their next car and this could be at odds with the supply of used cars from company fleets and businesses which often run larger, well-specified diesel-powered models.

Half of this year’s survey respondents feel the rising cost of fuel will force them to change to a more fuel-efficient car and/or alter their driving habits. Indeed, the price of fuel has already reached the point (130 pence plus per litre) where a fifth of motorists say they will have to seriously consider one or both these options.

“Our research shows that motorists have several measures in mind to curtail their frontline motoring costs”, said Gannon.

“Top of the list is buying a car with better fuel consumption - at 27%. But demand for these types of vehicles could well outstrip supply, pushing up prices as a consequence.

“The next 12-18 months are going to be a very challenging period for the UK motor industry.

“The potential supply shortage of younger used cars over the next few years may create upward pressure on used vehicle prices, while economic pressures may lead to reduced demand which will push prices downwards. Which of those two levers will be the stronger remains to be seen?”