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A survey, carried out by insurers 123.ie, has found that in spite of the recent scandal over diesel emissions, more that three quarters of all Volkswagen owners would be happy to buy a new Volkswagen. In even better news for Volkswagen, 54 per cent of the 6,300 car owners who were surveyed, said that the scandal and its fallout would not put them off switching to Volkswagen.
The 123.ie Great Irish Car Review, which was carried out by one of Ireland's leading car insurers, covered a range of issues including brand loyalty and the effect of running costs, such as repairs, on remaining loyal.
"We're surprised but not shocked by people's reaction to the Volkswagen scandal," said Padraig O'Neill, head of marketing, 123.ie. "According to SIMI (Society of Irish Motor Industry), there were more new Volkswagen's registered in Ireland in 2015 than any other passenger vehicle at 15,369 or 12.3 per cent of the market. And whilst Toyota outperformed VW in Ireland in December 2015, it still captured the number two slot for new car registrations in the final month of the year. So whilst the company's share price and reputation have certainly taken a battering, this hasn't translated into a decline in sales in Ireland and Volkswagen owners appear to be very brand loyal."
Volkswagen has been knocked off the top of the sales charts in January, slipping to fifth in the table behind Hyundai, Toyota, Ford and Renault but Volkswagen Ireland insiders have told us that they're not yet worried - in previous years, Volkswagen has been down the charts in January but still topped the market come the end of the year, and those sources believe that, even with the scandal, the same is still possible this year.
Meanwhile, The 123.ie Great Irish Car Review shows that overall, car buyers in Ireland are a loyal bunch, with nearly two thirds (62 per cent) stating that they will stick with their current brand, when changing car. Brand loyalty increases with experience and age - 72 per cent of over 65's state that they would buy the same brand versus 60 per cent of under 25's. The newer your car the more likely you are to stick with that brand; 72 per cent with cars of less than five years old say they would stay with that brand. This compares to half (50 per cent) of those with cars 15 years or older, who are more willing to change brand.
The cost of repairs has a strong impact on brand loyalty according to the 123.ie Great Irish Car Review. Around half (49 per cent) of those who spent €2,000 or more on car repairs in the last year are likely to be brand loyal but of those who spent less than €100, 71 per cent are likely to be brand loyal. So the more you have forked out on repairs, the less likely you are to choose the same car brand again.
Apart from Volkswagen, Mercedes and Skoda (both 74 per cent) together with Toyota (73 per cent) have been revealed as the top brands for owners to stay with, if changing their car.
Opel and Renault do not fare out as well. Fewer owners (around 50 per cent) of these brands are less likely to stay with them and only 28 per cent of Fiat owners say they will stick with the Italian car brand.