11:12 am, May 4, 2022
Dealers need to maximise the effectiveness of their online presence as the used car market finally starts to lose growth momentum.
That’s according to connected motor retail tech firm iVendi, which has come up with a five-point plan to help them.
Chief commercial officer Darren Sinclair said that while the sector was still quite buoyant, the market peak had now probably been passed, caused by factors such as the cost-of-living crisis and more competition for spending as the pandemic hopefully came to an end.
‘We’re hearing a chorus of voices – ranging from industry experts to anecdotal evidence from dealers – stating that values and prices are falling after several years of growth.
‘This had to happen sometime and it seems that time is now.
‘So far, it doesn’t look like a dramatic correction, more a relatively gentle realignment of supply and demand caused by a combination of issues ranging from pressure on personal finances through to slightly increased stock availability.
‘Several of the dealers with which we work have been talking to us about modifying their digital approach to adapt to these changing conditions, and we’ve gathered our headline thinking into this five-point plan.
‘It’s designed to help dealers rethink how they are using technology to create sales in a more competitive market where consumer concerns and behaviour may be now shifting noticeably.
‘Much of it is based around how likely changing consumer preferences and behaviour are likely to develop over the rest of 2022.’
The iVendi plan advises dealers to:
- Do more with each sale by ensuring your technology allows you to maximise revenue from every unit
- Re-examine your online proposition to make sure it still matches consumer needs in a changing market
- Emphasise the affordability of each vehicle by showing relevant finance examples that promote monthly costs
- Ensure running costs are a prominent part of vehicle descriptions and your vehicle search to help consumers find a vehicle that meets their financial needs
- Make the digital car-buying journey easy as consumers are once again being presented with a wider range of spending choices
Sinclair added: ‘One of the lessons of the car market at the start of the pandemic was that those dealers who recognised the changing conditions and responded by changing their digital approach accordingly were those who thrived.
‘Our view is that the same is now happening again. We can already see that those dealers in our customer base who are adapting their use of technology are those who are maintaining a higher level of success.’
