The role of the environment and sustainability in the car buying journey

But what’s driving the change for consumers? Are they focused on legislative changes, which have already seen the emergence of Clean Air Zones in city centres and the banning of new internal combustion engine (ICE) cars from 2030, wider environmental considerations, the growing choice of models on offer from the OEMs or the potential to reduce their mobility costs?

To help understand the current and future purchasing intentions of used car buyers, eBay Motors Group commissioned independent research to identify the role of environmental and sustainability issues in informing their decision-making processes.

The results are presented here exclusively for Cox Automotive’s AutoFocus.

The survey identified significant changes in buyer attitudes to fuel type, by gender and age, compared to the last Consumer Insight Panel research.

The percentage of car buyers claiming their next car will be an EV increased from 12% [CH3] in March 2020 to over one-fifth (21%) in November 2021, surpassing diesel on the way and outpacing the rate of growth for hybrid, which remains the most popular alternative to ICE for 28% of buyers.

The accelerated increase in buyers keen to purchase an EV has been achieved at the expense of petrol, which fell 14 percentage points from around half of all buyers (49%) to just over a third (34%).

Over half (51%) of male buyers expect their next car to be an EV or hybrid, closely followed by 47% of women.

Furthermore, around a quarter of men (24%) now plan to go totally EV, a notable jump from just 11% in March 2020, with hybrid growing at a slower rate from 24% to 27%, whilst the inverse is true for female buyers, where appetite for hybrid vehicles has increased from 21% to 29%, growing at a faster rate than EVs, up from 13% to 18%.

Overall, the increase in appetite for EVs is driven by older buyers aged 35-64.

Income is also identified as an important factor influencing the transition from ICE, with higher income households naturally more able and prepared to make the higher investment required.

Hybrids are the most popular alternative fuel choice accounting for over a quarter of households generating £30,000 to £99,999, rising to 38% for those earning £100,000 to £124,999, while EVs are the next fuel choice for over 20% of households with incomes ranging from £30,000 to £89,999, peaking at 34% for those earning between £90,000 and £99,000.

Understandably, petrol and diesel are the most popular choices among lower income households, respectively accounting for 37.3% and 19.9% of households earning £20,000 to £29,999.

The appetite to buy non-ICE cars is highest among those consumers living in cities and large towns, where the preference for EVs (27.4%) and hybrids (25.5%) is evenly split.

However, the appeal of EVs drops, compared to hybrids, when the requirement to charge away from home becomes a consideration, dipping below diesel in small towns and countryside location.

Having identified the 49% of buyers who said they will buy an EV or hybrid as their next car, the survey then asked what was informing and driving their decisions.

Overall, nearly three-quarters (74.5%) cited environmental factors – either to reduce their emissions or carbon footprint, while the balance wanted to reduce their running costs.

The reduction of carbon footprint is the most compelling reason for 45.5% of buyers and the dominant reason regardless of gender or age.

Reduced emissions accounted for 29% of buyers and is evenly split by gender, peaking at 37.3% of buyers aged 18-24 years old.

Cost savings accounted for 25.5% of consumers, appealing more to male buyers (27.2%) than female buyers (23.3%). It is also favoured by drivers aged over 25, rising to 30.9% for those aged 55-64.

Reduced running costs are also slightly more significant for those with household incomes between £30,000 to £70,000.

Having made the decision to switch, cost of purchase is the biggest barrier to EV adoption for over half of the buyers (53%). This is closely followed by access to charging points (49%), charging times (38%) and the cost of replacing batteries (35%).

Range anxiety, once widely considered to be the major stumbling block for adoption, is only cited by 32% of respondents.

To get a better understanding of concerns around charging, these buyers were asked to identify their main issues.

Not being able to complete longer journeys without stopping to recharge is the biggest concern for over half of these buyers (55%).

The recharging infrastructure is a concern for 52% of buyers along with the perceived need to plan longer journeys around charging point locations.

While the cost of installing home charging points is a concern for 51% of these buyers.