6:36 am, April 25, 2025
As the weather hots up attention is turning to the summer, with one expert suggesting the outlook is challenging but the opportunities for car dealers are enormous.
Bex Kennett from Auto Trader recently appeared on Car Dealer Live to give an update on the new and used car markets, and revealed the motor trade is experiencing a strong does of optimism thanks to robust demand and market competition.
Auto Trader experienced a significant increase in consumer interest in March, with an 11% year-on-year rise in platform visits, and a 20% increase in new car leads.
‘Last month we saw buyers who had been researching their next car during the winter making a purchase,’ Kennett said. ‘With lead conversion up by a fifth since the start of the year, we are getting back to the trend of March being the retail month of the year. Anything compared to previous years is going to be positive as we’ve had such a challenging time of it in the new car market.’
Last month was also a ‘really strong’ time for sales of new electric cars, with 69,000 registrations – up 43% on the same month in 2024 – but discounts are getting greater.
‘Discounts have increased by around 0.6% to 11.5% from brands and retailers to really incentivise buyers. This, along with more education, is resulting in more people viewing EVs [on Auto Trader] – up 60% on March 2024.
‘Around 20% of our enquiries are for electric vehicles, with models like the MG ZS EV leading the way with an 11% share.
‘But this is still behind; don’t forget that during the fuel shortage of June 2022 there was a peak of 32%.’
Kendall explained that one massive challenge this year is the increase in the ZEV Mandate from 22% to 28%.
‘There’s a wave of cheaper EVs that are really helping with the affordability gap [between EVs and ICE cars], but this is still a big increase. EVs are still 23% more expensive to an ICE car.’
But she added that incentives such as discounts will help drive uptake, along with ‘sexier-looking’ new models.
In the video, posted above, Kendall explains the massive opportunities available despite the challenges that lie ahead.
Click the video at the top of this story to watch the full interview.
