70% of motorists plan to buy an electric or hybrid car in the near future

70% of motorists plan to buy an electric or hybrid car in the near future

Key findings

• Nearly half of motorists say insurance costs have increased in the last year
• A quarter of motorists don’t have a good understanding of car finance options
• 31% of motorists change their car every 2-3 years
• 70% of respondents plan to buy an electric or hybrid car in the near future
• Half of commuters find Monday morning the busiest time on the road
• Using personal savings is the main option considered by buyers when looking at financing a car
• The most popular car model is the Volkswagen Golf
• 36% of people were unaware of the Government’s goal to reach 100% of all new cars and vans being EV’s by 2030, and only 16% feel that it is achievable.
• A fifth of commuters would consider using an e-Scooter for their work commute

Irish motorists do not feel confident when selecting car finance options with a quarter (24%) feeling they don’t have a good understanding of the different car finance options available, according to the latest Motoring Report from Carzone, Ireland’s trusted motoring marketplace.

The Carzone Motoring Report is compiled by analysing data from the 80 million+ car views carried out on Carzone in 2019, as well as an in-depth survey of over 1,500 Irish drivers.

Buying and financing a car

According to the Carzone Motoring Report, 39% of respondents intend to buy a car in the next year and nearly a third (31%) change their car every two to three years. The main reasons for purchasing a car is simply wanting a newer car (30%), the need for a more reliable car (21%) or they require a larger car for a growing family (16%).

It is clear from the data that Irish drivers are unsure when it comes to car finance, and the research highlights the perceived barriers to using car finance for motorists. Over half (55%) of drivers are concerned about getting into debt, 44% are sceptical about the lump sum required at the end of a PCP agreement and 40% don’t like the idea of not owning the car outright when buying via PCP and hire purchase.

Using personal savings is the first option considered by car buyers when looking at financing a car (48%) followed by a bank loan (41%), Credit Union loan (34%), hire purchase (16%) and PCP (14%). Browsing online (90%) is the most popular way of researching car finance, followed by enquiring with a dealer (45%) and getting recommendations from friends and family (25%).

While most cars are still purchased in dealerships or private sale, motorists have become more open to buying a car online with 1 in 10 (10%) saying they would buy a car online without seeing it first. 77% say they would pay up to a €1,000 deposit online for a car while 17% would be open to paying for a car in full online.

Money and markets

The research found that insurance remains the top financial concern for 64% of Irish car owners. Almost 1 in 5 (17%) cite the cost of fuel as their main worry, while 10% say general maintenance of their car is a financial concern.

Almost half (47%) of motorists claim their insurance premium has increased in the last year with nearly a third (30%) opting to switch insurance provider in the last 12 months. 40% have remained with their insurance provider for over three years.

6 in 10 (58%) motorists would consider buying a car from the UK with perceived better value (82%) being the main reason. However, the research also finds that consumers are still cautious about purchasing a car from the UK with two thirds (63%) saying that buying a car in the UK is too much hassle. Other doubts include that it would be high risk (35%) and worries about Vehicle Registration Tax (35%).

Going green

The latest Carzone Motoring Report finds that diesel remains the most popular engine type to drive with 58% of motorists owning this type of vehicle. Over a third (39%) own a petrol-fuelled car while only 2% of respondents drive a hybrid or electric car.

However, motorists would consider a switch to electric and hybrid cars with 70% saying they plan to buy an electric or hybrid car in the future with the Nissan Leaf and Lexus IS300h being the most searched electric and hybrid vehicles on Carzone so far this year.

It seems younger drivers (18-24-year olds) are more environmentally conscious with three quarters (77%) likely to purchase an electric or hybrid car in the future compared to those over 45 years old (63%).

Cheaper running costs (57%), better for the environment (20%) and tax incentives (10%) were the top reasons why people would buy an electric or hybrid vehicle.

36% of people were unaware of the Government’s goal to reach 100% of all new cars and vans being EV’s by 2030, and only 16% feel that it is achievable.

Commuting choices

Nearly three quarters (72%) of respondents drive to work every day and 51% feel that Monday morning is the busiest day for traffic. The research also found that while high numbers of motorists drive to work, only 6% of commuters’ carpool with colleagues.

The e-Scooter has become a popular way to commute in towns and cities across the country over the past twelve months. One fifth (20%) of respondents say they would consider using an e-Scooter for their daily commute. Nearly a third (30%) of younger commuters (18-34-year olds) are open to using an e-Scooter but only 11% of 45-year olds and over would use an e-scooter to commute.

Most searched cars

The Volkswagen Golf is the most popular car model searched on Carzone in 2019, followed by the BMW 5 Series and Mercedes-Benz E-Class. Volkswagen is also the most popular make, followed by BMW and Audi.

Commenting on the latest report, Karl Connolly, Audience Manager Carzone said:

“Our latest Carzone Motoring Report is our eleventh edition where we examine trends and changing behaviours of Irish motorists. In our latest edition, we’ve put a significant focus on car finance options, alternative fuel engines and the introduction of the e-Scooter as a commuting option.

Insurance premiums have been a top concern for several years and are still the key issue impacting motorists, with half of the respondents seeing their premiums increase in the year. The report has also highlighted the uncertainty among drivers when it comes to car finance options with 1 in 4 saying they don’t have a good understanding of car finance available to them.

Awareness about the benefits of alternative fuel vehicles is on the rise among drivers with the announcement of the government’s Climate Action Plan. The plan aims to see nearly a million EVs on Irish roads by 2030, but not all motorists are confident this will be possible according to this year’s report. Our research found that 70% of drivers would consider purchasing an electric or hybrid car in the near future which is a step in the right direction”.

MOST SEARCHED CARS

To access a full copy of the report, visit: http://www.carzone.ie/motoringreport