Why now is a prime time to increase the size of your online forecourt
Free double stock has ended, but now is a great time to increase the size of your online forecourt and test your return on investment.
The free double stock offer ended on Friday (17th July). It was introduced back in March as one of the first measures we offered to support retailers throughout the COVID-19 pandemic. Many retailers utilised the offer and have benefited since showrooms were eventually allowed to reopen. So it’s great news, that we have introduced another great offer with 75% off unlimited extra stock as we continue to emerge, allowing you to capitalise now demand is high and used car prices are rising.
We’ve pulled together 3 reasons why now is a great time for you to capitalise on this offer.
1. Take advantage whilst the market is strong
2. Consumer behaviour has changed
3. Get more for your money
1. Take advantage whilst the market is strong
The market bounced back quickly after showrooms reopened and has remained strong throughout June and into July. Audience is up 20% and leads are up 110% versus the same period last year on AutoTrader¹, with pent up demand and new buyers entering the market contributing to strong performance across the industry. As a result, we are also currently seeing prices increase slightly, up 4.7% on last year². Robert Forrester suggested on one of our recent webinars that “if used car operators aren’t seeing almost record margins, they’ve got their pricing wrong”. This comes as retailer partners report that they do not need to reduce vehicles or discount them at the point of purchase due to strong demand, meaning profit per unit was increasing on used cars. Many have seen this as an opportunity to stock more vehicles and capitalise on the 75% discount for additional stock. One retailer recently told us “there’s a window of opportunity here as people look for alternative means of transport when returning to work and we believe this will go on for some time. We want to get as far ahead of our plan as possible whilst the market is like this to prepare us for a potential period of unknown later in the year.“
2. Consumer behaviour has changed
We may be starting to see the start of what you might call normal consumer behaviour. Yet our consumer research suggests it may be a ‘new normal’ that retailers must adapt to. 42% of consumers told us they were now completing more tasks online due to COVID-19³, whilst 37% said they were unlikely to visit a dealership unannounced⁴ opting instead to request an appointment, reserve a vehicle online or complete their purchase online. This has increased the importance of your online forecourt, with reduced footfall and consumers less likely to turn up unannounced. This means stock not advertised online is effectively hidden from consumers and competitor vehicles that are available online will be far more likely to sell.
3. Get more for your money
With a significant discount available on extra stock, now is a great time to review your advertising spend to ensure you’re getting the most for your money. With 2 million visitors daily⁵ and 7 in 10 car buyers choosing Auto Trader to pick their next car⁶, no other automotive marketplace can offer the same reach and exclusive audience. So if you’re paying to advertise on another platform, compare that cost to Auto Trader and work out where you’re likely to get the best return on your investment. Take the opportunity to divert spend from platforms with a small audience and poor-quality leads to save yourself time and effort whilst demand is high. Also, if you’re paying to advertise the same cars on other platforms, consider what your return on investment would be if you put that additional spend into increasing your online forecourt size with Auto Trader. Maximising this spend now will allow you to get ahead in the current market.
The evidence clearly suggests that the used car market is in a healthy position. And if you can source more stock, it begs the question why wouldn’t you. The results are overwhelmingly positive on Auto Trader right now and whilst it’s a fraction of the cost to add extra stock until 8th September 2020, it’s a great time to optimise your return on investment.
You can book unlimited extra stock throughout August or if you want more information on how this offer can support your plans for growth contact your Account Manager on 0330 098 5874.
¹AT internal data. 10-day average 10/07 – 19/07 2020 versus the same period last year. ²AT Internal data. w/c 13th July 2020 average uplift of used car prices compared to the same period last year. ³AT on-site survey. 15th-18th Jun Q: Do you think you’ll complete more or less tasks online while looking to buy your new car due to CODID-19? N=4956. ⁴Userzoom 2nd-3rd Jun Q: Dealerships are now open in England, how likely would you be to visit a car dealership? N=300. ⁵AT Internal data. 10-day average 10/07 – 19/07 2020 versus the same period last year. ⁶AT Internal data. 10-day average 10/07 – 19/07 2020 versus the same period last year.