10:51 am, December 16, 2024
December can be a worrying time for used car dealers with leads drying up as a result of buyers saving their pennies ahead of a busy festive period.
For some, it feels like they’ll never sell a car again but new research from Auto Trader has given the motor trade cause for optimism.
That is because fresh data has revealed that, despite sales being low in the final months of the year, a whopping , 74% of January buyers start browsing in November and December.
The firm also found that on average, car buyers spend a total of 87 days – almost three months – researching their next vehicle purchase.
Also, with 85% of in-market buyers are at least as confident as last year in being able to afford their next car, Auto Trader says early engagement with potential buyers is essential for dealers who want to kick 2025 off on the right note.
So far this December, seasonal pricing trends are holding strong so far and with typical average month-on-month price rises of 0.2% from December to January and 0.4% from January to February, pricing is expected to be ‘robust’ in the coming months.
Experts therefore say that it is key that dealers deploy ‘strategic stock management’, including the use of future valuations data, to stay ahead of market fluctuations.
Auto Trader’s pre-Christmas tips to a quick start in January:
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Engage with buyers now to create a January sales pipeline
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Upload all available stock and focusing on high quality advertising
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Use pricing tools regularly to review strategies and capitalise on profit opportunities
Commenting on the findings, Richard Walker, Auto Trader’s data and insight director, said: ‘The good news is all the research and insights we have shared in recent months highlight the opportunities available to retailers who can fully harness the data available to them to ensure they thrive in 2025.
‘From pricing cars from Retail pricing data to maximise commercial opportunities, to sourcing the best vehicles for individual markets using demand and supply data, following the data can lead to additional profit.
‘We would encourage retailers to leverage the full potential of their Auto Trader packages by utilising all of our data products and new product additions like Co-Driver to drive sales performance and achieve more for their businesses.’
