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Buyers turn to dealers for help in the digital age
Thursday May 9th, 2013
A record 94% of car shoppers now start their buying journey online.
That’s according to a new industry report by the Capgemini consultancy. While vehicle manufacturers’ websites, dealer websites and search engines are the top sources of information, social media has gained more influence over purchase decisions this year, while family and friends has lost some.
The study surveyed more than 8,000 consumers in Brazil, China, France, Germany, India, Russia, the UK and US. Other key findings include:
• Loyalty to brands and dealers is on the rise. Over the past few years, manufacturers and dealers have worked hard to improve the customer experience, and it seems their efforts are paying off.
• Despite the digital transformation that is occurring in the car and other industries, the dealer remains an integral part of car buying. More than ever, shoppers count on them to make sense of everything they’ve read and heard about during their pre-buying research process. Dealers were considered the number one source of information by 56% of customers, an all-time high.
• Shoppers increasingly expect the showroom to be informative, interactive and entertaining.
• ‘Connect me’ technology enhances the ownership experience. Just over half of consumers expect their next car to be internet-connected. They expect their new cars to have all the technology they’re used to everywhere else in their lives – applications for work and recreation delivered via their various devices.
“Consumers expect an exciting and unique experience with seamless integration between the digital and the physical world. They act as a driving force for innovation in this industry,” Markus Winkler, head of automotive, at Capgemini Consulting said.
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Parents in the dark about child safety seats
Thursday May 9th, 2013
Over one in four parents of toddlers wrongly believe they should choose a safety seat based on the age of the child, when in fact they should go by height and weight instead, a survey by Which?, the consumer magazine, has found.
For instance, 50% of parents wrongly believe their children are safe to go in a forward-facing seat when they reach the age of nine months old, when in fact the decision depends on the weight of the child.
The survey also found that 50% of parents didn’t know what the right model of safety seat would be right for their car, and more than 50% of seats had been incorrectly fitted.
Which? also warned parents against buying a seat online, from websites that provided little or no advice or offered a fitting service.
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Why women make better car buyers than men
Thursday May 9th, 2013
A recent survey has revealed that women feel they get a better deal than men when buying a used car.
The study, by HPI, the vehicle history checking firm, found that 43% of men were not completely satisfied with their last used car deal as opposed to only 35% of women, which suggests that female motorists might be making better buying decisions.
It also found that 51% of women consult a family member or friend who has some knowledge of cars before they enter the showroom, whereas men are reluctant to ask for advice, with only 27% taking along a knowledgeable friend.
“The survey suggests that men are more difficult to please, when it comes to used car buying and that they won’t take advice,” HPI’s Nicola Johnson said. “In contrast, women are eager to take advice and prepare before checking out their options. This helps them make measured decisions and as a result, they are happy with their purchase.”
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Price of fuel remains motorists biggest concern
Thursday May 9th, 2013
Despite some supermarkets dropping fuel prices at the pumps, new research from British Car Auctions indicates that fuel costs remain a major concern for motorists.
In a BCA poll of used car buyers, three quarters of those who took part said the price of fuel was their biggest worry when it comes to motoring costs. Their top five concerns were:
1. The price of fuel
2. Cost of road tax
3. Insurance costs
4. Vehicle maintenance and servicing
5. Parking
Many are concerned about the rising costs of motoring because they rely on their car for their work. Over a quarter of survey participants said they now buy only the amount of fuel they need, rather than filling up the tank every time. One in four now also search online for the cheapest petrol station before heading out to fill up.
Changing to a more fuel-efficient model appears to be a growing trend too, with 15% saying they have already taken this step. Nearly one in five has changed from a petrol car to diesel, to cut motoring costs.
“It’s clear from our survey that motorists are continuing to feel the financial pinch,” Tim Naylor of BCA said. “While the price of fuel still tops the list of concerns regarding motoring costs, 31% said that maintenance and servicing costs were a key issue. A quarter have delayed repairs to their car to save money, and 23% have avoided recommended service intervals.”
That could prove short-sighted, Tim Naylor said. “Motorists should remember, when they decide to sell their car, that buyers place a significant value on service history.” BCA estimates that a full service history is worth up to £500 for the typical five-year/60,000-mile car valued around £7,000. “Saving now may cost you more in the future,” Tim said.
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Scots least likely to suffer 'avoidable' MOT failures
Thursday May 9th, 2013
Motorists in rural Scotland are less likely than those in any other part of Britain to fail their MOT as a result of simple, easy-to-fix, issues such as blown bulbs, worn tyres and cracked windscreens.
The research, conducted by the Society of Motor Manufacturers & Traders, indicates that around 1.5 million MOT failures each year could be avoided if motorists carried out simple visual checks of their vehicles and forewarned their dealer of any issues, before the annual test of roadworthiness.
The Orkney Islands had the lowest number of avoidable fails, with only 13% of issues being of the type that an owner could have identified in advance of the MOT. In joint second place were the Hebrides and Shetland, with a 13.6% ‘fixable’ failure rate.
At the other end of the spectrum was Central London with a figure of 46%. The national average was 22%.
Most avoidable MOT failures
1 Central London 46.4%
2 South West London 35.4%
3 Bromley 34.3%
4 Ilford 33.9%
5 North West London 33.3%
6 Kingston 32.7%
7 Sutton 32.3%
8 Harrow 31.0%
9 East London 30.8%
10 Croydon 30.6%
Fewest avoidable MOT failures
1 Orkney 13.0%
2= Hebrides 13.6%
2= Shetland 13.6%
4 Berwick-on-Tweed 14.0%
5 Kirkcaldy 15.1%
6 Bradford 15.3%
7 Sunderland 15.4%
8 Inverness 15.5%
9 Aberdeen 15.8%
10= Hull 15.9%
10= Stoke-on-Trent 15.9%
% of all MOT fails considered 'avoidable'
The findings were highlighted as part of the motor industry's ‘Minute Or Two’ campaign, which encourages motorists to carry out ten visual checks of their vehicle prior to the MOT test.
“The aim of the ‘Minute Or Two’ campaign is to give motorists the knowledge and confidence to check their own vehicles and eliminate the possibility of simple problems, such as lights and fluid levels, causing a fail at the vehicle’s next MOT test,” Mike Baunton of the SMMT said.
The full ‘Minute Or Two’ checklist, which can be viewed at www.passmymot.co.uk, includes checks of headlights, tyres, windscreen wipers and fluid levels. The website also features a video guide to the checks.
The campaign is also backed by every major car maker, and technicians at 5,545 manufacturer main dealerships across the UK are ready and able to assist customers who might be unsure about doing the checks themselves.
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Demand is soaring for dealership finance
Wednesday March 6th, 2013
New figures from the Finance & Leasing Association show that the value of consumer new car finance provided through dealerships increased by 36% in in 2012, to £9.4 billion. The average balance financed was over £15,000.
More than seven out of ten new cars bought by consumers last year were financed by a dealership at the point of sale, a total of 662,052 (up 27% on the previous year). In 2011, it was 63%.
“These figures show that customers want good value deals and are finding them,” Paul Harrison, the FLA’s Head of Motor Finance, said. “The number of cars financed is at its highest level since before the recent financial crisis.” He added that the factors underpinning consumer confidence in motor finance looked likely to continue.
Personal contract purchase remains the most popular way of financing a new car, with a 64% share of the market, compared to Hire Purchase with 27%.
Hire Purchase remains the most popular way of financing a used vehicle however, also with a 64% market share. But PCP products continue to advance and now account for 22% of dealership used car finance.
The used car finance market had a good year overall. At a time when finance can be hard to come back, dealerships increased the number of used cars that they financed by almost 10%, to 787,821 in 2012.
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Manufacturers race to create the connected car
Wednesday March 6th, 2013
From as early as 2014, motorists will be able to connect to the internet using voice commands while driving.
That is the prediction of information company IHS, whose senior analyst Jack Bergquist said: “By the end of 2014, for some of the bigger brands, every vehicle they sell will offer some sort of connectivity.”
Using technology based on smartphones and tablet computers, IHS believes that in the very near future drivers will be able to update social networking sites, search for local restaurants and petrol stations, and book a hotel or a parking space on the road.
Car makers are investing heavily in creating the ‘connected car’, which could see internet screens installed on dashboards some time next year, to be followed inevitably by a range of brand new apps designed specifically for motorists.
“If you look at a cost to design a completely new car model, some companies are spending around a third of the budget just on the in-vehicle infotainment and the in-car technology around the system,” Jack Bergquist said.
“Ford has categorically stated that this is selling more cars for them. Over 50% of consumers would be swayed by the presence of an internet-capable device.”
Safety groups argue that the distraction this potentially causes for drivers is an additional safety risk (indeed, in the USA it is estimated that some 25% of road traffic accidents are caused by mobile phones). “You could get caught up your experience and forget that you're driving,” John Ellis, a global technologist at Ford, said.
But Bergquist countered that voice-activated internet technology could actually help to improve car safety, not least because so many drivers ignore the ban on hand-held mobile phones anyway. “You can't stop people from doing this,” he said, “but car manufacturers are able to create a system that is a million times safer than people updating Facebook on a phone in their laps.”
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New law for short-sighted motorists
Wednesday March 6th, 2013
Short-sighted motorists involved in an accident or caught driving dangerously will now have their licences revoked within hours rather than days, to prevent them posing a risk to other road users.
The move follows a campaign led by Jackie McCord, whose daughter Cassie was killed in 2011 by an 87 year-old driver who had failed a police eye test three days before, and who collected 45,000 signatures petitioning for a change to how licences are removed.
The DVLA and the police have worked closely to greatly streamline the process for revoking a licence when the police identify that a driver’s eyesight is inadequate,” road safety minister Stephen Hammond said. “The decision whether to revoke a driving licence on medical grounds remains with the DVLA, but the process for informing drivers that their licence has been revoked has now been accelerated.”
Under the old scheme, police had to send a letter or fax to have a licence revoked, which could take several days. Under the new ruling, known as ‘Cassie’s Law,’ they can make a phone call or send an email requesting a licence be removed (from the roadside using a smartphone, for example).
The DVLA would then email back a revocation notice to the police station, which could be printed out and delivered to the offending driver the same day. Drivers who continue to drive after being told their license has been withdrawn face a fine of up to £5,000 or possibly six months in prison.
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Driving tips for the motorway at night
Wednesday March 6th, 2013
Driving after the sun goes down is a rather different experience to driving in daylight. Speed is harder to judge, distances can be hard to calculate, and facing a wall of headlights can cause distraction and impaired vision.
Britain’s top advanced driver, Peter Rodger of the Institute of Advanced Motorists, offers some tips on driving in the dark on the motorway, to make your journey as safe and enjoyable as possible:
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To improve your view as far as possible, keep your lights and windscreen clean. Clean the inside of your windscreen as well as the exterior.
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Use main beam to maximise the distance you can see ahead, but when other drivers are approaching dip your lights to avoid dazzling them.
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Turn off your interior lights and dim the dashboard if possible to reduce interior reflections on your windows.
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Make sure you can stop safely within the distance you can see to be clear. Stopping distances should be increased in hours of darkness, more so if winter weather has made the roads more slippery.
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If you’re feeling tired, caffeine alone is not a fix. Take a break and have a 20-minute nap in a safe location. Opening your window to let some cool fresh air in will also perk you up.
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Motorway driving can be monotonous, so share the driving if possible.
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Look at how the traffic in front behaves for clues to possible problems you can’t see yet. Especially stay on the lookout for brake lights up ahead.
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If you break down, pull over on to the hard shoulder and stop as far to the left as you can, pointing your wheels in towards the kerb. Then leave your vehicle and stand behind a crash barrier if there is one.
“Currently there are several stretches of motorway in Britain which have no lighting, making the hours of darkness even more challenging for motorists,” Peter Rodger said. “But this shouldn’t put you off driving. The roads are a lot quieter, making it a suitable time to make continuous progress.”
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80mph motorway proposals scrapped
Wednesday March 6th, 2013
Government proposals for a new 80mph motorway speed limit are likely to be cancelled, due to the level of concern that it might increase the number of fatal car accidents.
According to the Financial Times, transport secretary Patrick McLoughlin is resolved to cancel the plan, although an official announcement may not be made until later in the year.
However, the Department for Transport has said it will be going ahead with trials. A press officer for the DfT said: “Work is continuing to assess the potential economic, safety and environmental impacts of trialling 80mph speed limits across a number of sites on the motorway network.”
Brake, the road safety charity, strongly welcomed news, and urged the government to invest in more variable speed limits on motorways, with a top speed of 70mph, which it says is a proven way to reduce crashes while improving traffic flow.
The Association of Chief Police Officers says it wants to see pilots lasting two years before supporting the policy.
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Scotland top of the league for pothole damage
Wednesday March 6th, 2013
A third of drivers around the UK have damaged their vehicle by hitting a pothole in the last two years, a new AA survey of motorists has found.Damaged road surfaces took the greatest toll on drivers in Scotland, by some margin:
Damage in last two years
Scotland 44%
North West 35%
North East 34%
South East 34%
Yorks & Humberside 34%
South West 33%
Wales 31%
West Midlands 31%
East Midlands 30%
London 30%
Eastern 29%
Northern Ireland 29%
UK average 33%
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The results show that tyres and wheels bear the brunt of the impact, with 13% of respondents reporting a damaged tyre and 6% sustaining damage to both tyre and wheel. An unlucky one in ten has had their steering knocked out of alignment as well as damage to the wheel.
In the worst case, a handful of people said the incident resulted in them losing control and crashing into anther vehicle or object.
Andy Smith, the AA’s patrol of the year award winner, commented: “It’s no surprise that drivers in the north have taken the biggest pothole hit, but AA patrols report that as soon as you get off the main road in many rural areas it’s like being on an Alpine mountain pass – you’re often in first gear traversing huge craters.
“If you see one up ahead, slow down and try to avoid swerving round it as you risk having a more serious accident. Regularly check your tyre pressures and look for any bulges, nicks or unusual tyre wear, which could spell pothole trouble. If in any doubt, get them checked at a garage.”
The AA is encouraging road users to report potholes to local authorities to allow them to repair them. Usually the repair cost won’t justify an insurance claim. However, you might be able to claim for the cost of any repairs from the highway authority if they were aware of the defect.
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Competition 'working well' in petrol sector
Wednesday February 6th, 2013
Rises in pump prices for petrol and diesel over the last ten years were mainly the result of higher crude oil prices and increases in tax and duty, not a lack of competition, an investigation by the Office of Fair Trading has found.
Its report concludes that, at national level, competition is working well in the UK road fuel sector, although the absence of pricing information on motorways is a concern and it does not rule out taking action in some local markets if there is evidence of anti-competitive behaviour.
On the widely-held perception that pump prices rise quickly when the wholesale price goes up but fall more slowly when it drops, the OFT said it found “very limited” evidence to support such claims.
“There has been widespread mistrust in how this market is operating,” the OFT’s Chief Executive Clive Maxwell said, “however our analysis suggests that competition is working well, and rises in pump prices over the past decade or so have largely been down to increases in tax and the cost of crude oil.
“Our call for information has not identified any evidence of anti-competitive behaviour at a national level, where competition appears to be strong. There may be some issues at a local level. Where we receive evidence of potential anti-competitive behaviour we will consider taking action. For example, we have recently opened an investigation into the supply of road fuel in the Western Isles of Scotland.”
Motoring organisation and consumer groups expressed their shock at the findings. Quentin Wilson, as a spokesman for FairFuel UK, said: “UK consumers will be bitterly disappointed. The nation will feel let down. The Americans and the Germans are holding inquiries – why aren't we?"
AA president Edmund King added: “The OFT are not ruling out action at local level and its call for motorway fuel price signs could bring more competition. But drivers deserve a better explanation of why prices fluctuate wildly and who is driving this – from the pump back to the well.”
And David Bizley, the RAC’s Technical Director, said: “It is a great shame the OFT has not taken this opportunity to instigate a full investigation into this issue which many motorists view as daylight robbery.
“RAC research has demonstrated that the car is an essential part of day-to-day life of a vast number of families. As many as 53% of people said they could only transport their children to school by car, while 57% could not do a weekly food shop and other essential activities without their vehicle.”
Research conducted by BCA, the car auction group, indicates that many motorists are changing the way they drive to maximise their fuel efficiency. “70% of owners have already taken steps to cut their motoring costs, trying different ways to combat the financial pressures,” BCA’s Tim Naylor said. “These include altering the way they drive (17% drive more slowly to conserve fuel), avoiding heavy breaking (16%) and opting for more fuel-efficient models.”
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Motorists unaware of new tyre labeling laws
Wednesday February 6th, 2013
70% of British motorists are not aware of the new EU tyre labelling regulations new research from Continental Tyres has found.
The new regulations, which came into force last November, remain a mystery to most, with one in five mistakenly thinking that one of the categories would indicate how many miles a tyre should last.
In fact, the label shows ratings for wet braking, rolling resistance and external noise only, and must be shown to the consumer upon the purchase of a tyre.
"It's the biggest thing to happen to the industry for some time, and yet it seems to be passing a few people by," Peter Robb of Continental said.
Of the 2,000 motorists who took part in the survey, 20% said the labels were confusing. However, nearly half (49%) said they thought it would change how they decide which tyres to buy.
"We hope tyre labelling will help motorists understand that their tyre choice can affect the safety and performance of their car," Continental’s Laura Hardy said. "They are not something people enjoy buying, but a tyre is a safety product and its importance should not be under-estimated - which is why there needs to be a greater level of awareness about the different options."
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Why a windscreen check should be part of your winter safety routine
Wednesday February 6th, 2013
Prior to any journey in winter, particularly long distance trips, motorists should take the time to check not only their tyre pressure, lights, petrol and oil levels, but also the car’s windscreen for scratches or cracks.
"Checking your windscreen should be an essential part of every motorist’s safety routine, especially in winter," Matthew Mycock, the Managing Director of Autoglass, said. "People don’t realise, but it provides up to 30% of a vehicle’s structural strength and is critical in supporting airbag deployment. Poor weather conditions mean there is a greater danger of windscreen damage."
During the last cold snap Autoglass saw a 29% rise in motorists suffering cracked windscreens, with branches in Aberdeen seeing up to a 350% rise in calls to fix windscreens affected by the cold. For that reason, drivers are also advised not to use boiling water to defrost a frozen windscreen, especially if it already has chip damage.
Top five tips for safe driving this winter:
- Use a good screen scraper to remove ice. Don’t use credit cards or CD cases as they can cause scratches, leading to poor visibility in bad weather.
- Replace the battery if it's not reliable. A flat or failing battery is the biggest cause of car breakdowns.
- Regularly checking fluid levels can make your car run smoother, and ensuring car lights are working is also crucial to maintain visibility.
- As the average temperature drops, so will tyre pressures. Worn tyres affect breaking ability in poor weather conditions so check them regularly.
- Take your vehicle for a service - regular maintenance can help your car’s critical components last longer.
Matthew said he urged motorists to make these few simple checks before driving, and to “ensure they have warm clothing, a spare tyre and an emergency kit in the boot in case of a breakdown.”
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Scots waste millions a year on fuel through poor driving
Wednesday February 6th, 2013
Inefficient driving techniques are costing Scots motorists more than £570 million a year in wasted fuel, new research has found.
Experts at the Energy Saving Trust, which offers free advice to motorists on how to cut their fuel bills, calculate that an average driver in an average car in Scotland drives 9,090 miles a year.
By taking their advice, it says, the typical motorist could save £250 a year (equivalent to 21p off every litre spent on petrol and diesel) by following a range of simple fuel-efficient driving tips. The fuel saved would be enough to fill Hampden Park 416 times over.
To help more motorists save money, the Trust has just launched a new free smartphone app called FuelGood. When activated it constantly monitors the movement of a vehicle, and provides feedback on how well you are driving by showing green for efficient driving and red if it detects inefficient practices like excessive idling or increased speed.
Speaking at the launch of the app, Minister for Transport Keith Brown said: "We are all looking at ways to cut fuel consumption, and this is a great tool to track everyday journeys and to see the difference that driving efficiently can make."
Ian Murdoch, manager for Scottish transport at the Energy Saving Trust, said that fuel-efficient driving was about adapting your driving style: "Simple things like anticipating road conditions and driving smoothly, shifting to a higher gear as soon as possible and switching off the air-conditioning when it isn’t needed all have their part to play - and they don’t necessarily slow you down," he said.
RAC technical director David Bizley added: "Driving smoothly without accelerating harshly and braking rapidly can without doubt make a noticeable difference to fuel economy and drivers' pockets."
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