2008 Honda OdysseyKelley Blue Book, Irvine, Calif., released in July its Market Intelligence survey of car shoppers that indicates most plan to spend a relatively small amount of money on their next vehicle purchase and are more likely to buy used versus new. Additionally, more than one-third of in-market car shoppers say they plan to pay the entire cost of their next vehicle purchase in cash and they are not influenced by incentive offers.
The Market Intelligence data is based on a survey of 338 in-market car shoppers on Kelley Blue Book's kbb.com from June 18-21, 2010.
Nearly three-quarters (74%) of those surveyed said they plan to purchase by year’s end; 67% said they are in the market for a used car. In addition, 42% of used-car shoppers and 20% of new-car shoppers said they plan to pay the entire cost of their next vehicle in cash.
According to the research, 62% of used-car shoppers plan to spend less than $15,000 on their next vehicle purchase, while half of new-car shoppers plan to spend $25,000 or less on their next vehicle purchase.
The majority (82%) of used-car shoppers and 51% of new-car shoppers said that incentive offers have no effect on the timing of their next vehicle purchase. In addition, 81% of used-car shoppers and 48% of new-car shoppers said that the availability of incentives have no effect on their specific vehicle choice (make/model).
"In-market car shoppers are taking a decidedly conservative approach to car buying right now (in June), which we think can be directly attributed to low consumer confidence in the current economy," said James Bell, executive market analyst for Kelley Blue Book's kbb.com. "It seems people are re-assessing their financial situations and deciding to spend less, buy used and pay more often with cash. 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."
Younger car shoppers (age 34 and under) are more open to buying either a domestic or import brand, compared with shoppers age 55+ who are more likely to have decided upon either a domestic brand or an import brand.