8:51 am, July 10, 2023
Most car owners would rather trade-in their vehicle with a dealer than use an online car buying service, new data has revealed.
Last week, Swansway became the latest outfit to offer its own online car buying platform with the launch of its new ‘Sell 2 Swansway’ site.
However, a study by eBay Motors Group has suggested that customers may still prefer to do things the old fashioned way.
Research conducted as part of the group’s latest Consumer Insight Panel found that 62 per cent of in-market buyers are currently expecting to part-exchange at a dealership against the value of their next purchase.
Meanwhile, a further 38 per cent of the 2,000 people surveyed said they will sell their existing car before buying from a dealer.
The research also showed that dealers remain the preferred destinations for online valuations for most owners.
Nearly a third (32 per cent) said they would get an online price from the dealer they expect to buy from, while 22 per cent are more likely get online valuations and offers from dealers they find through car search websites.
A further 21 per cent said they would prefer to speak directly to the dealer they are buying from about part-exchanging their current vehicle, rather than seeking an online valuation.
And when it comes to alternatives to dealer trade-ins, private sales (28 per cent) are just ahead of online car buying services, such as We Buy Any Car (27 per cent).
For buyers choosing to part-exchange with dealers, convenience is the biggest overall consideration, with respondents saying they value the ease of being able to do everything in one place.
For those selling their current car ahead of buying a replacement, the biggest driver was getting a better price, followed by being in control of the process and having more options.
- eBay Motors Group data finds stock levels dipped last month as average used car prices began to fall
Reacting to the findings, Lucy Tugby, marketing director of eBay Motors Group, said: ‘Despite the choice of online car buying services, many of which have become household names, when it comes to part-exchanges, dealers are the go-to destination for most buyers, whether getting valuations online or negotiating in the showroom.
‘While this is welcome news for all dealers, they will still need to work hard to retain this business or see specialist online used car buying services win it from them.
‘In light of the ongoing shortage of used cars, a dealer’s ability to retail part-exchanges is more important than ever.
‘While our research reveals just how attractive it is for customers to trade-in and buy at the same time, over half (57 per cent) of all buyers claim to get at least one type of online valuation.
‘The need to be competitive on valuations remains paramount.’
