New research from the AA highlights the change in automotive buying trends, a host of factors are changing our buying habits.
The AA of Southern Africa has released some interesting statistics. According to their “Going Further” research it highlights a trend in car ownership. In the past our buying trends indicated that we kept cars for between three to five years, this was influenced largely by service and maintenance plans, once these ended you traded your vehicle in for something new that had the warranty and maintenance plans, eliminating the cold fear of a nasty financial surprise relating to mechanical/wear and tear failure.
However, the times we live in financially have changed, vehicle pricing is determined by international markets and exchange rates, and to put it simply, cars are no longer as affordable. The AA’s ‘Going Further’ research confirms this with data showing that more than 90 percent of us keep our cars longer than before and 40 percent of us are now keeping vehicles for five to ten years.
Interestingly, the buying trends data shows that the trend in keeping vehicles longer is not just financial, it’s practical, too. New cars are better built therefore meaning they’re more reliable than before. Why get something new that needs to be financed if what you drive is paid for and has no issues? if it ain’t broke don’t fix it.
The AA’s “Going Further” data looked at vehicle insurance, too, the data reflects that in excess of 60 percent of respondents had insurance. This is in stark contrast to national data points that indicate a rate of 35 percent of cars on our roads as insured.
What these data sets reveal when looked at holistically is once a service or maintenance plan is done over 50 percent of car owners prefer to take a potentially expensive gamble and pay for repairs and maintenance out of their own pockets. Only 20 percent of respondents had taken out an extended warranty or service plan.
If you live in Cape Town it’s easy to see the above theory from AA’s “Going Further” research in action, having run out of CA branded plates local government has started issuing CAA plates to new registrations. The amount of older models on highways and byways in the Western Cape bearing CAA plates shows that buyers are making financially savvy purchase choices by going with pre-loved vehicles.