Consumer’s Motivating Factors In The Purchase Decision Of A Used Car

Abstract

This study explores the motivating factors in the purchase decision of a used car from a consumer’s perspective. Buying a used car offers a more economical solution compared to new cars. The objective is to understand what motivates consumers in the purchase decision of a used car. The theoretical part of this study goes through the theory of buying, used cars as a product, the used car market in Finland, consumer behaviour and the decision-making process.

The chosen methodology for data gathering was a semi-structured interview as this gives some possibility to sway from the original questions and ideas of the writer. The data was analysed via content analysis and keywords and recurring themes were found. The interviews were divided into six major themes: product, dealership, salesperson, price, payment options, and optional extras. The commissioner of the study is Kamux, a large used car dealer operating in Finland, Sweden, and Germany.

Participants had clear motivators in their selection of a specific car. They wanted the correct size and a reliable used car at a reasonable price. Financing was important and needed to be reasonable in terms of cost. Initially participants felt that the salesperson did not affect the decision but after further analysis it did have an effect. The additional liability commitment (optional limited warranty) needed to be offered at the start of the sales process to have a motivating affect.

The study had mostly expected results related to the consumer’s motivations in the purchase decision. There were also some surprising results. It is important for the salesperson to do a thorough need analysis in order to provide good service and a well-fitting car for the customer. Factors such as the size of the car, reliability, condition, price, financing options, trade-in values, and optional limited warranties played significant roles in motivating consumers.