Survey Shows US Car Owners In No Hurry To Buy New

Here is some some sobering news, albeit expected. A recent survey has shown that the vast majority of current car owners will keep their existing vehicle longer than usual, due to the sour economy. This, of course, is bad news for the slumping auto makers who desperately need buyers. In theory, this weak demand should drive retail prices even lower, so be on the lookout for deep discounts.

From Green Car Congress:

A new study by DriverSide.com and Kelton Research found that more than four out of every five US car owners now plan to keep their current car longer, due to the bad economic climate.

According to the survey of US vehicle owners aged 18 and over, 82% reported they now intend to keep their car longer than originally planned. The findings suggest an end to the cycle of frequent new car buying.

In a downturn economy, consumers focus automobile-related efforts on maintaining vehicles, minimizing operational expenses and preserving the vehicle’s overall value.

—Thilo Koslowski, vice president and automotive practice leader at Gartner, Inc.

The trend is even stronger for low income drivers and families. Eight-six percent of consumers with an income of less than $40,000 and families with children indicate they will keep their vehicle longer than originally planned.