Car Test Drives Down

As the national news reports that the sales of new cars is down by nearly 60% compared to the same month last year, this is also confirmed by car retailers who states the number of test drives is down. The message is clear, not only are sales down but there does not seem to any future planning to eventually buy a new car, which is what the numbers of test drives equate to.

The purchase of a car is not an immediate one; it tends to start with car reviews and checking out the price guides. Motoring programmes such as 5th Gear and Top gear contribute to the decision process, together with magazines and newspapers. But the next stage of buying a new car or a used one tends to be calculated with the quantities of test drives. It is not apparent that a test drive will involve an immediate sale as there tends to be other factors involved than just the price of the vehicle, such as part exchange value and finance deals.

Getting the consumer into your make of car in the form of a test drive is the best way to convert a sale and sow the seed of desire, but normally the customers will go hone to decide whether it is for them, or even go on several test drives. It seems that the popularity of the car is still there based on viewing figures of motoring magazines but taking that second step to viewing and test driving a vehicle still seems a step too far at this pint of the credit crunch.

However when you start looking at the used car market, especially smaller engined vehicles that do a high miles to the gallon, there is a different story. Certain vehicles are already in short supply, proving the consumers still need or want a different car, just do not want to suffer the depreciation of a new one. To prove this there are certain internet based "we buy your car" type business popping up everywhere and advertising on TV. This is because the new car market is not providing good trade-ins for the used market and so they are going direct to the public to buy the cars, then to be resold to the trade.

The question is how long this can be sustained, where there is a great demand for used cars, but very few people buying new cars? This becomes more apparent when you consider that up to 50% of new cars can be attributed to the car lease market. The first indication of any improvement to the new car sale market will probably come in an increased demand for test drives of new models not yet on the used car market, especially if these models have improved fuel efficiency, so the saving in fuel can outweigh or match the depreciation loss of that new car.

There are arguments that some models can be cheaper to buy new, if the owner does a high mileage, if the model is considerably cheaper to run. Let's hope the upturn comes soon.

Mark is webmaster for Test Drives and Lease Cars

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