New Study Shows That We're Keeping Cars Longer Page 2

July 7, 2011

Cost Savings, Economy Driving Vehicle Retention

Compared to 2010, 20 percent more respondents in 2011 cite the economy or cost savings as the reason they’re holding onto vehicles longer

 

Few Plan To Buy New Cars Unless Absolutely Necessary

 

Reasons for buying new

Reasons for buying new

Forty-five percent of respondents who are buying cars in 2011 are doing so because their current vehicle is end-of-life. Much to the dismay of manufacturers, only 19.6 percent are car shopping because of new models on the market, and only 8.8 percent are shopping because of low interest rates. Most telling, perhaps, is that only 5.7 percent of respondents are car shopping because of confidence in the economic recovery.

If there’s good news to be had in the survey, it may be for the future of independent repair shops. Nearly half of new-vehicle buyers won’t opt for an extended warranty, with most citing the cost of service contracts as their primary objection. When repairs are needed outside of warranty, most plan on taking their cars to an independent mechanic rather than back to the dealership. A surprising number (26 percent) plan on repairing the vehicle themselves, something that is considerably more challenging in 2011 (and beyond) than in decades past.

Cars are lasting longer than ever before, and Americans are scrapping more cars than we’re buying. That may not make automakers happy (which explains why the Chinese market is so important), but it  should keep mechanics and auto parts stores in business for the foreseeable future.

 

[AutoMD]

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