3 key areas for retailers to focus on right now
Despite the threat of more restrictions, and the seasonal trends we’d normally associate with car-buying in a pre-pandemic world, demand for new and used cars continues to rise as we head into an uncertain holiday period.
Audience engagement on Auto Trader remains exceptionally high with 10 million unique users so far this month, that’s 16.7% more than the same period in 2019. 42% of January’s sales start in December on Auto Trader, making it essential to keep doing the right things now to start the New Year strong.
Audience levels have remained strong ever since Lockdown 1, demonstrating the enduring importance of a digital forecourt. If stock isn’t online, it isn’t for sale.
Pricing movements remain positive, albeit softened by a seasonal slow down in pace.Strong demand and supply challenges are set to continue well into 2022.
The market learned - and quickly! By lockdown 3, used car sales were 84% vs 2019 reflecting new buyer behaviour and retailer readiness.
To make the most of the next few weeks, retailers must continue to ensure they’re able to deliver against the ever-increasing expectations of online consumers, delivering a seamless experience no matter where or how the buyer wishes to complete the transaction.
So, here’s our 3 top areas to focus on right now
1. Optimise your business and forecourt to trade online
Being online isn’t just about nice pictures and a well-versed description. It’s about familiarising yourself with distance selling regulations, ensuring you’re able to meet the expectations of consumers who are willing to buy online, without seeing the vehicle physically. It’s also about making use of technology, whether it’s the benefits of real-time retailing offered by Auto Trader Connect, or simply the added confidence customers have buying remotely by employing Home Delivery and Click & Collect flags, live chat, text, live video walk-arounds, live vehicle delivery tracking.
Recommendations
Activate our Home Delivery and / or Click & Collect flags
2. Maximise your online opportunity through data
Use our data to keep on top of the market, every day, via the tools that enable you to see how the market is performing around you. Market Insight in Portal gives you an instant picture of market health and pricing changes at both a national and regional level. Retail Check and Retail Accelerator provide the best vehicle level view of what supply and demand looks like for the stock on your forecourt, and the stock you’re looking to put on your forecourt, together with market driven pricing data you can rely on. Remember, it’s a seller’s market right now. With new car stock constraints expected to continue well into 2022, combined with continued high demand, there’s no indication that retail prices will fall significantly any time soon. The average price of a used car on Auto Trader is now £20,109 and with used car pricing up c.28% year-on-year, we’ve seen 5 years’ worth of pricing growth inside just 6 months.
Recommendations
Use your Market Insight tool in Portal to gain clarity over the market
Make the most of Retail Check and Retail Accelerator to price to market
Join our bi-weekly webinars packed full of market and audience insight
3. Maintain and protect your performance
If you’re not able to sell remotely, protect your local online market against those who are. Maximise your online coverage by having all your stock advertised online, to the best standard and the right price for the market and your business goals. Be aware of the changing car parc due to new car shortages and supply constraints. This is driving a change in buying behaviour amongst consumers and older stock. don’t be afraid to reflect that change on your forecourt, supported by our robust market data.
Recommendations
Make sure all of your stock is visible online, if consumers can’t see it, they can’t buy it
Cast your sourcing net wider to help acquire stock, consider tools such as Dealer Auction and Guaranteed Part-Exchange
Your adaptability and resilience will continue to be your competitive advantage. If you’d like any support from our experts, contact your account manager or call 0345 111 0002.