American Drivers Willing to Pay-Up to $2,668 to "Keep Their Baby" and Delay Trade-Ins.
MEMPHIS, Tenn.--June 11, 2003--Stocks, bonds, mutual funds? How about that car in your driveway? A new consumer poll finds the repair and maintenance of a car, SUV or light truck may become an investment vehicle of choice. According to results of the AutoZone Breaking Point Survey reported today, the majority of Americans are prepared to absorb surprisingly heavy costs to keep their vehicles on the road another year rather than replace them.Eight out of 10 drivers (82 percent) surveyed say they plan to keep their current vehicles running for at least another year, and will perform more maintenance on them to do it. According to the AutoZone "Breaking Point" Indicator, a calculation of the average maintenance/repair cost needed to trigger a new vehicle purchase, it would take a hefty expense - approximately $2,668 - to prompt most drivers to trade-in their vehicle rather than repair it.
"The reason people are keeping cars longer is clear. Maintaining a vehicle is simply much less expensive than buying the average new car," said Steve Odland, chairman, president and CEO of AutoZone.
Supporting the desire to keep their vehicles running, 36 percent of drivers say they performed more maintenance on their vehicles in 2002 than in 2001. Yet according to the survey, more than half (54 percent) of the drivers surveyed spent less than $300 to maintain their vehicle in 2002. Thirty-five percent of respondents drive a vehicle that is eight years old or more, and almost half (47 percent) drive vehicles that are at least six years old.
The survey also suggests that automakers' owner's manuals seem to be serving as a guidepost to maintenance, with 71 percent of respondents saying they stick to the recommended maintenance schedules. However, the research reveals a gap between consumers' intentions to maintain their vehicles and the amount they actually spend, as reflected in the fact that the Automotive Aftermarket Industry Association reports that $60B in required maintenance goes undone every year.
The survey found that frequent breakdowns and maintenance costs are the primary reasons for selling a vehicle, with 49 percent and 36 percent agreeing, respectively. Getting a good deal on a new car or a trade-in was secondary in drivers' decisions to sell their vehicle (29 percent).
Drivers overwhelmingly say the most important factors in their vehicles are dependability (90 percent agreeing) and safety (80 percent agreeing), while a vehicle's design (34 percent strongly agreeing) and color (18 percent strongly agreeing) are much less important. Half the surveyed drivers say a vehicle's warranty (49 percent strongly agreeing) and fuel economy (47 percent strongly agreeing) also figure prominently.
Among other survey findings:
| -- | 85 percent say regular tune-ups are the most important thing they can do to maintain long-term value in their vehicle; 47 percent say keeping the vehicle clean will maintain its value; |
| -- | Drivers are more apt to check tire air pressure (50 percent) on a monthly basis than their motor oil (48 percent); |
| -- | Drivers are more likely to buy used vehicles (55 percent) than new ones (45 percent). |
Survey Methodology
The AutoZone Breaking Point Survey on consumer attitudes toward vehicle maintenance was based on a random sample of 886 adults who drove a vehicle on a regular basis. ICR/International Communications Research initially conducted the study by telephone in November, and revisited the polling with more focused questions in February 2003. The Breaking Point Indicator is the average cost of a maintenance problem that would make drivers sell their vehicle rather than fix it.
About AutoZone
As of May 10, 2003, AutoZone sells auto and light truck parts, chemicals and accessories through 3,152 AutoZone stores in 45 states plus the District of Columbia in the U.S. and 43 AutoZone stores in Mexico, and also sells the ALLDATA brand automotive diagnostic and repair software. On the Web, AutoZone sells diagnostic and repair information through www.alldatadiy.com, and auto and light truck parts through www.autozone.com.
