current trends in the UK car market

Question 1

what is a trend

Answer 1

a tendency to move in a general direction

Question 2

explain the trend of prices of used cars over the last 5 years

Answer 2

• there was a shortage of vehicles available during the pandemic due to a shortage of semiconductors
• this caused prices of used cars to be high
• they have since gone back down since the second half of 2022

Question 3

explain the trend of prices of new cars over the last 5 years

Answer 3

• prices have continued to rise from year to year
• prices risen 3.3% between 2021 and 2022

Question 4

what are the tends currently seen in the UK car market

Answer 4

• the price of new cars gradually rising
• the price of used cars rose in the pandemic and has since fallen
• consumer tastes and preferences, more electric car sales, increased online sales, preference for grey cars, reduced ownership and increased leasing

Question 5

what are the three types of electric cars

Answer 5

1 BEV battery electiric vehicle- purely electric, range of 100-300 miles

2 PHEV plug-in hybrid electric vehicle- part electric part petrol

3 E-REV extended range electric vehicle- electric with a regenerating battery to last longer

Question 6

how many new electric cars were registered in 2018 and 2022

Answer 6

in 2018 15,510 new electric cars were registered
in 2022 267,203 new electric cars were registered

Question 7

all new cars and vans sold in the UK must be electric by _____ . By ____ the sale of new entirely petrol and diesel powered cars will be banned

Answer 7

2035, 2030

Question 8

what percentage of cars in the uk are purely electric or hybrids

Answer 8

estimated between 2 and 3% as of December 2022

Question 9

more battery electric vehicles were sold in 2021 than the previous _ years combined (20__ - 20__)

Answer 9

5, 2016-2020

Question 10

electric car sales increased by ___ in 2022

Answer 10

40%

Question 11

what 2 factors are going to encourage growth in the UK electric car market

Answer 11

• big investment into the UK’s charging infrastructure (129 EV charging devices per 100,000 people)
• sale of new petrol and diesel cars being banned in 2030

Question 12

what are the top 3 most popular car colouurs

Answer 12

1 grey - 24.8%
2 black- 20.5%
3 white- 17.2%

Question 13

what are the factors affecting prices

Answer 13

• component costs/supply
• labour costs
• brand power
• features/USPs

Question 14

what are microtransactions

Answer 14

• add-ons that you can purchase to turn on and add features to the car

Question 15

what is leasing

Answer 15

• making payments each month to use the car
• no ownership involved
  similar to rent on a house

Question 16

what is financing

Answer 16

• borrow money to purchase the car and pay it off with monthly payments

Question 17

what are the types of cars people are buying

Answer 17

• there has been a rise in popularity for the crossover, a cross between an SUV and a hatchback, seen to be popularised by the Nissan Qashqui

Question 18

how do the PESTLE factors contributed to the growth of electric car sales

Answer 18

political- government want to increase electric car sales to reduce environmental damage, they are heavily investing in charging ports
legal- they are banning the sale of new petrol and diesal cars in 2030
environmental- customers have a growing concern for the environment

Question 19

factors to consider with the trends in the UK electric car market

Answer 19

• the cost of the cars, often more expensive than petrol or diesel cars
• ethical and environmental concerns
• economic factors, changes in income
• level of infrastructure, charging points being built
• energy prices