Has the Financial Crisis Provoked Consumers Into Buying More Used Cars in the Uk?

Topics: Economics, Question, Automobile Pages: 7 (1857 words) Published: May 28, 2013
Individual Assignment
Prepared for: Robert Denny
Prepared by:
Due by: 30/11/2012
Module Code: SKL5A1
Word Count: 1383

Has the financial crisis provoked consumers into buying more used cars in the UK?

Table Of Contents

Executive Summary3
Section 1: Introduction3
Section 2: Literature Review3
Section 3: Methodology4
Section 4: Findings4
Section 5: Conclusion6

Executive Summary

This report looks into the question of whether or not the financial crisis and recession has provoked UK car buyers to begin to buy more used cars than new cars. The primary and secondary research conducted in this report has proved that this is the case.

Section 1: Introduction

As it is well known, the financial crisis hit the world hard, not just the banks but normal working people as well. The aim of this research paper is to gain a better understanding of how the market of used cars has changed since the financial crisis. A lot of people lost their jobs because of the crash, which has made life quite difficult for many people. The job market has become extremely competitive since large corporations are cutting down on staff and it has yet to recover. The research question I have is “Has the financial crisis provoked consumers into buying more used cars in the UK?” Perhaps there seems to be an obvious answer to this question but I will be researching into what extent and if what you would expect really is as blatantly obvious as you might think.

Section 2: Literature Review

According to the University of Buckingham, the UK car market remains the largest in Europe. (University of Buckingham, 2012) Before I decided to carry out my own primary research I believed it was essential to get some background information on the topic. I used Regent’s online library resources such as Mintel Oxygen to conduct some of my secondary research as well as the Internet. Another study from the University of Buckingham on the European used car market of 2012 states that because used car availability is based on the number of new cars sold, the decline of new car sales in the UK will hamper the used car supply for several years to come. (University of Buckingham, 2012) Having said this, the used car sales have increased slowly but steadily since the financial crisis while the new car sales have decreased. The volume of used car sales in the UK dropped from 7.1 million in 2007 to 6.7 million in 2008 and down to 6.3 million in 2009. Since then it has slowly begun to rise again and in 2011 it was up to 6.7 million again. (Buckingham, 2012) Section 3: Methodology

During this assignment I decided to use primarily secondary sources, such as other research topics or papers from other authors. However I did not believe that this was enough to get enough knowledge to complete the desired outcome of this question. I therefore decided to use a survey to see what people think and get a sample of how people around me would approach the idea of buying a car or changing their current one. To accomplish this I decided to send out a survey from “Survey Monkey”. The questions and Findings can be found in the next section of this report. Section 4: Findings

The research conducted was based on a short survey conducted. This survey was sent out via Facebook to friends and family. It is perhaps not a completely random sample since they are all friends of mine. However, the people asked are not all students, but also unemployed and employed consumers. This method of convenience was the simple choice since it would take much more time to get the survey out to strangers and complete random people that didn’t study at Regent’s. Granted not all that received the survey are studying at Regent’s but it is still down to the convenience of our own social...
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