Brand loyalty evaporating among used car buyers
Used car buyers are less loyal to brands than in the past, according to new research carried out by Startline.
Its Used Car Tracker for June found that 74% of dealers believe customers are less likely to automatically by a brand they have in the past, with 52% saying that price is becoming a more significant factor and 32% agreeing that new entrants often offer better deals.
The research also found that 28% say established manufacturers are too expensive with only 17% saying used car buyers favour brands they already know.
Paul Burgess, CEO at Startline Motor Finance, said: “There has been a huge amount of disruption in the new car market during the last couple of years with the arrival of new entrants, mostly from China, achieving a substantial market share very quickly.
“We wanted to take a look at whether this openness to new brands was also true in the used sector and dealers agree that there has been an erosion in the importance of buying a used car from an established brand.
“It appears that if consumers perceive that factors such as price and value are present, they are more than happy to buy from brands that have very short track records in the UK. This indicates the future prospects for new entrants are considerable.”
