Demand for personal vehicle ownership remains overwhelmingly strong
If you want to buy a car dealership or are already an auto dealer, one of the main things on your mind is probably consumer car ownership trends. So, you might be happy to learn that, according to a new study commissioned by the National Automobile Dealers Association (NADA), demand for personal vehicle ownership remains overwhelmingly strong across all demographics.
The survey of 1,200 consumers was conducted by Luntz Global from March 2-5, 2018, and findings were released later that month. The study consisted of a large national survey of U.S. consumers on their attitudes – both positive and negative – toward autonomous vehicles, ride-hailing, car sharing, and personal vehicle ownership.
Luntz Global encapsulated the findings as follows: “Some analysts have gone so far as to predict the end of personal car ownership in the near future. But what analysts predict isn’t always what consumers end up deciding… the research found that consumer demand for owning an automobile remains strong across the board.”
Here are some of the key conclusions:
Owning vs. Ride-Hailing
9 out of 10 respondents (89%) said they would rather continue owning a car, versus one out of 10 respondents (11%) who said they would prefer using ride-hailing as their exclusive mode of personal transportation.
Millennials & Vehicle Ownership
Even millennials, who would seem the most open to ride-hailing services, said they prefer vehicle ownership by an 80 to 20% margin. Importantly, millennials in the suburbs or rural areas were six points less interested in ride-hailing than their urban counterparts.
Cars = Convenience
Consumers overwhelmingly view vehicle ownership as a convenience, not a cost-drag or nuisance to own. Only 6.5% of consumers in the survey viewed owning a car as a hassle or costly nuisance.
Self-Driving Cars? The Answer is ‘Maybe’
Consumers are more split when asked about autonomous vehicles. 56% of consumers said they would purchase a fully or highly autonomous vehicle, while 44% said they would not. The numbers do seem to indicate more people are becoming open to this technology.
As you can read, the survey results show consumers still value and rely on their personal vehicles and have no intention of giving them up. The survey’s findings run contrary to a number of recent reports predicting that the convergence of electric vehicles, autonomous vehicles, and ride-hailing services would dramatically cut the number of personally-owned vehicles.
Thanks for visiting the Pinnacle Mergers & Acquisitions news page. Pinnacle is a national auto dealership brokerage focusing on new car dealerships for sale. Pinnacle also helps investors who want to buy a car dealership. Founded in 2000, Pinnacle has enjoyed almost two decades of successful sell side and buy side auto dealership brokerage transactions. The depth and breadth as our experience as intermediaries for those who want to buy a car dealership or place a new car dealership for sale is best in the industry. Contact us at (972) 539-6113 for a confidential consultation.
