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Kelly Blue Book survey shows most car shoppers plan to buy used
The study also indicates that more than half won’t pay more than $15,000 and will pay cash.
BY TAYLOR FALLONPublished: July 23, 2010 10:34 AM
Irvine-based Kelly Blue Book’s latest consumer survey shows that most people in the market to buy a car plan to purchase a used vehicle and spend a relatively small amount. And more than a third said they plan to pay in cash.
The study, conducted over a four-day period in June, polled 338 in-market car shoppers, who cited economic factors as the guiding force in their buying habits.
Here’s how the findings shake out:
• 67 percent said they are in the market for a used car
• 42 percent of used-car shoppers and 20 percent of new-car shoppers said they plan to pay cash for entire cost of their next vehicle
• 62 percent of used-car shoppers said the they plan to spend less than $15,000, while 50 percent said they plan to spend less than $25,000
• 82 percent of used-car shoppers and 51 percent of new car shoppers said incentive offers have no effect on the timing of their purchase
This conservative approach signals consumer confidence in the current economy, said James Bell, executive market analyst for Kelly Blue Book.
"It seems people are re-assessing their financial situations and deciding to spend less, buy used and pay more often with cash,” said Bell. “Incentives have loosened their tight grip on the American consumer, with more people deciding to purchase what they can truly afford versus what they can get with over-extended credit lines and incentive offers on the hood from manufacturers."
Thirty percent of those who intend to finance their next purchase listed zero-percent financing as the most appealing incentive. The most popular loan term was 60 months. As for price, 62 percent indicate they prefer negotiating to having a single set price.
Kelly Blue Book is a leading source for a range of new- and used-car information. It’s website, kbb.com, logs more than 15 million in-market vehicle shoppers each month.
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The study, conducted over a four-day period in June, polled 338 in-market car shoppers, who cited economic factors as the guiding force in their buying habits. Here’s how the findings shake out: • 67 percent said they are in the market for a used car • 42 percent of used-car shoppers and 20 percent of new-car shoppers said they plan to pay cash for entire cost of their next vehicle • 62 percent of used-car shoppers said the they plan to spend less than $15,000, while 50 percent said they plan to spend less than $25,000 • 82 percent of used-car shoppers and 51 percent of new car shoppers said incentive offers have no effect on the timing of their purchase This conservative approach signals consumer confidence in the current economy, said James Bell, executive market analyst for Kelly Blue Book. "It seems people are re-assessing their financial situations and deciding to spend less, buy used and pay more often with cash,” said Bell. “Incentives have loosened their tight grip on the American consumer, with more people deciding to purchase what they can truly afford versus what they can get with over-extended credit lines and incentive offers on the hood from manufacturers." Thirty percent of those who intend to finance their next purchase listed zero-percent financing as the most appealing incentive. The most popular loan term was 60 months. As for price, 62 percent indicate they prefer negotiating to having a single set price. Kelly Blue Book is a leading source for a range of new- and used-car information. It’s website, kbb.com, logs more than 15 million in-market vehicle shoppers each month. Related headlines Quantum Fuel Systems signs deal with Fisker Automotive Eurocar moves into new 55,000-square-foot space in Costa Mesa OC METRO, July issue: '2011 McLaren MP4-12C' |
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