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Scrappage scheme appeals to older generation, according to latest analysis from Experian
Online searches for cars also increase as new scheme stimulates motorists’ interest
Nottingham, UK, 10 June 2009 - People who are approaching retirement age are the ones most likely to be attracted to the scrappage scheme, according to analysis from Experian®, the global information services company.
Experian recently identified 7.1 million vehicles in the UK that would be eligible for the scrappage scheme – those vehicles that were first registered more than ten years ago and owned by the current owner for at least 12 months. However, Experian’s analysis also highlighted that the scheme would realistically only be accessible - in terms of affordability - to the owners of 1.5 million of these vehicles.
According to the company’s latest analysis 18 per cent (270,000) of the owners of the 1.5 million vehicles fall into the ‘Close to Retirement’ Mosaic type - older couples and families, who are at a stage in life where they are reaping the benefits of their industrious working lives. They comprise mainly of consumers aged between 45 and 64 years old and tend to own more than one car per household. These consumers are likely to buy their car from main car dealers, tend to favour the supermini and MPV segments and see brand image as an important factor when buying a car.
Kirk Fletcher, Managing Director of Experian’s Business Information and Automotive businesses, said: “Our analysis reveals that actually the biggest market for the scrappage scheme are those people close to retirement with an eye for either an economical supermini or MPV. This is potentially good news for the likes of Honda, Mazda, Toyota and Renault who could use this kind of insight to help them on the forecourts.”
Across the 1.5m people most likely to be able to afford taking up the scrappage scheme, German brands like BMW and Mercedez-Benz are most popular. In fact, the scrappage scheme has stimulated online activity in the automotive sector and these brands were among the top ten most visited manufacturer websites in April, when the scheme was announced.”
Increased online activity
Data from Hitwise, an Experian company, shows that online searches specifically for ‘cars’ had been falling, but picked up again when the scrappage scheme was announced in April and then again when the scheme kicked off on May 18.
Hitwise data also shows that the scrappage scheme has helped generate more interest in the car market overall and has driven more online traffic to automotive manufacturer websites. For example, at the beginning of April, overall traffic to manufacturer websites was at 0.1082 per cent of the weekly market share. However, traffic increased after the scrappage scheme was announced and by the end of May the weekly market share to these sites was 0.1204 per cent.