More than 40% of Irish adults are likely to buy a car in the next 12 months and half of buyers plan to use their savings to fund the purchase, a survey claims.
The poll of 1,000 people also finds that the average intended spend on a car is €11,394 — those buying a new car will pay an average of €19,726, while the average anticipated spend on a used car is €7,645.
The research, conducted by Coyne Research on behalf of DoneDeal, found that, overall, 41% of Irish adults are “likely” to buy a car in the next 12 months.
A quarter of those surveyed claimed they would buy a used car, while 13% said they would splash out on a new vehicle.
“Interestingly, the findings highlight that over half of people plan to use their savings primarily to purchase a car, with just over a quarter of people choosing to take out a credit union loan,” the authors of the survey said.
“The research pointed to an increase in popularity for PCP finance, with 11% of people choosing this option as part of their finance when purchasing a new car.”
The make/brand of the car is cited by 23% of survey respondents as having the most influence among consumers when it came to choosing a vehicle. For 19% of people, price is the driving factor in their decision making, while emissions (5%) and colour (4%) score lowest.
Meanwhile, a survey of 1,000 consumers by Amarach finds that 75% of Irish adults are planning to make a “major financial purchase” by the end of 2017.
The findings of the study, which was carried out on behalf of Vision-net.ie suggests that a holiday (58%) is the most common planned major financial purchase. Similar to the Donedeal survey, this report finds 34% of respondents are planning on purchasing a used car between now and the end of 2017.
“Home improvements also feature prominently, indicative of the trend toward families extending their homes as an alternative to moving particularly where negative equity and housing shortages are a barrier to trading up,” the survey found.
“The biggest obstacle to making these big purchases is accessing finance.
“This is a particularly acute challenge for those aged 35 to 54, with over 58% within this grouping citing this factor.
The difficulty in accessing finance for those within this age grouping may be a reflection of the existing debt and taxation burdens faced by this grouping, particularly those impacted by high pre-crash house prices.”
The survey found that just more than a third (35%) of respondents will use a combination of loans and savings to fund their planned purchase, while just under half (48%) plan to rely solely on their savings.
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