NFDA survey shows price is the main driver of automotive decisions in the UK

The UK National Franchised Dealers Association (NFDA), has announced the results of its Consumer Attitude Survey 2023. The NFDA represents franchised car and commercial vehicle retailers across the UK, and the results are representative of the population in relation to UK adults aged 18+. The main objectives of the survey were to explore current consumer perceptions of franchised dealers and their competitors as well as understand consumer behaviour.

Electrification

The survey set out to understand consumer behaviour in the UK and in particular around some of the major themes such as electrification. Price remains the biggest barrier to entry to buying an EV with 62 per cent of consumers saying that is the case. 57 per cent cited the lack of charging infrastructure in the UK and 54 per cent had concerns over battery life in existing EV models.

However, the two main reasons to purchase an EV were the running cost advantages (42 per cent) and the environmental benefits (36 per cent). This demonstrates that there is a careful balance between price and the environment which needs to be negotiated in the minds of UK drivers. When dissecting the data by age brackets, the majority of respondents that were not interested in buying an EV all together were over the age of 35. In particular, 60 per cent of those over 55+ years old stated that they were not interested. The younger generation showed more positive inclinations that they would like to switch, with 71 per cent of 18-24 year olds interested in buying an electric vehicle.

Consumers trust Franchised Dealers

The survey explored current consumer perceptions of franchised dealers and their competitors. Overall, 34 per cent of consumers were satisfied with the performance of franchised dealers with only 6 per cent being dissatisfied.

Reasons to choose a franchised dealership Consumers chose franchised dealers, compared to other retailers such as independent garages, for a number of factors including: competitive price models (55 per cent), the availability of EV models (31); and quality of service (27 per cent). Franchised dealers were expected to provide test drive capabilities (73 per cent) and an option for online browsing (52 per cent), demonstrating the vital importance of omnichannel retailing in this sector. Most franchised dealers now operate a Bricks and Clicks strategy meeting this demand from the UK consumer.

What has been evidenced by some of the online only retailers is that UK consumers still want the ability to come to a dealership, speak with a professional and test drive a vehicle before making a purchase

Cost of Living

The survey clearly demonstrated how the cost of living crisis has affected UK consumer attitudes in the automotive sector. In nearly every segment the deciding factor when making a decision was cost.

For example, the most important factor when searching online for a dealer was cost (32 per cent), far higher than positive reviews (20 per cent), or customer service (13 per cent). Price was the also the primary reason to choose a franchised dealership with 55 per cent of consumers believing that was the most influential factor.

Conclusion

The 2023 Consumer Attitude Survey has demonstrated a number of key points for the automotive market. We are at an EV tipping point where price and the environment are balancing each other in the consumers mind. NFDA continues to work with franchised dealers on schemes such as Electric Vehicle Approved (EVA) to help them, help UK consumers with the transition.

Cost of living, as with so many other areas of life, has been an important factor in automotive decision making and franchised dealers will continue to support consumers helping them make the right decision for their needs. Finally, it was pleasing to see a high level of consumer satisfaction with franchised dealers and an acknowledgement from the consumer that omni-channel retailing is the future of automotive retailing.

Sue Robinson, CEO, NFDA, said: “The Consumer Attitude Survey provides a unique insight into consumer behaviour and industry as the car evolves from internal combustion engine to the electric vehicle. NFDA’s members are at the coal face of this industry, working every day alongside consumers, hearing their concerns and answering their questions. We would urge everyone to take note of concerns around the cost of living and understand the balance between price and environment when it comes to the EV transition. Going forward, NFDA will continue to commission the Consumer Attitude Survey every year to track changes in consumer attitudes, building a data set that will inform future decision making.”