Market Report

Market Report November 2020

The ninth Auto Trader Market Report investigates the long-term trends in digital retailing, what’s driving adoption and what’s preventing it, as well as the key benefits to the automotive market.

Consumer appetite towards buying​ online is increasing


of consumers would consider buying a car completely online


of consumers think buying online is appealing when presented with a tangible example of how it could work


As the prospect of buying a car completely online is new to most, many consumers can’t fathom how it would work. But when they are offered a clear scenario which explains the process, the appeal increases to 61%. It’s an awareness of online buying options which is a challenge.


Nathan's summary

Hear from our CEO, Nathan Coe, as he delves into some of our research and findings.

Digital car buying trends

There is real demand from consumers for more of the car buying process to be available to do digitally;
among consumers who have bought a vehicle in 2020, many would have liked to have completed more of the jobs digitally.


of people want to buy online for ease and convenience


of people want to buy online to get the car quicker


of people want to buy online because they think it’s easier to compare deals


of people want to buy online to avoid haggling

So, what are the barriers for consumers and retailers to buy and sell online?

What’s preventing consumers from buying digitally?

Consumers currently find completing many jobs, particularly those later on in the buying
process, difficult or impossible to complete online.

Consumers still value retailer interaction

When given the options, most consumers want to complete the majority of the jobs away from the dealership. However, face-to-face interaction is still valued and most still want a degree of human interaction at some stage of the buying process.

Imagine you are buying a used car, how would you prefer to handle the following list of jobs?

The majority of consumers want to complete most jobs away from the dealership, highlighting a clear opportunity for retailers to leverage online to improve the consumer experience. However, this doesn’t necessarily mean no human interaction – as this element is valued by many.

How consumers want to complete jobs online varies


of people prefer to complete jobs fully online without any human support


of people would prefer to complete jobs online with some human support

Who buys digitally and what are the benefits for consumers?

By creating confidence in the online experience retailers can start to decrease the need for some consumers to visit the dealership to feel confident in their decision.

Who is buying online?

Proactive showroom visitors

  • Consumers who want to complete most of the car buying process online but still value some aspects of the retailer experience; they value the blended online/offline experience
  • People in this category tend to end up online because they struggle to get the right deal or car offline, or because they know someone who can vouch for the process as a different approach to buying in person
  • Proactive showroom visitors recognised the benefits of completing the process online and are likely to repeat or do more jobs online next time they buy a car

Reluctant showroom visitors

  • Consumers who want to do the entire process online but still feel as though they need to go to the retailer for some parts; they resort to a blended online offline experience because they feel they can’t do some elements online
  • People who struggle to complete some of the online aspects and visit the dealerships at some point as a result
  • Reluctant showroom visitors recognised the benefits of completing the process online and are likely to repeat or do more jobs online next time they buy a car

Digital adopters

  • Consumers who have fully embraced an exclusively online buying experience
  • People who start the car buying process online and feel they can complete the purchase digitally and don’t see the need to visit the dealership
  • Digital adopters thought the digital buying process worked well and would do the same next time

What are the benefits to accelerating the adoption of digital retailing capabilities?

It’s clear there is a meaningful shift in sentiment towards digital retailing. We believe it represents an exciting opportunity for the industry to significantly improve the consumer experience, and in turn accelerate the buying process.

Nathan Coe, Auto Trader Chief Executive Officer

Embracing digital retailing is a vital way to improve the current buying experience for consumers by giving them more options, an easier process and a more engaging experience that can be completed when and where is most convenient. And, if the car buying cycle was just 10% quicker than it is today, it would lead to c.1million more car sales a year.

Retailers will embrace digital retailing at different paces, so the retailers who lead the way stand to benefit more by increasing their market share.

How do we give consumers the confidence to buy online?

The three core pillars to build consumer confidence in car buying are: trust in the vehicle; trust in the retailer and trust in the price. When it comes to supporting the digital car retailing process, there’s a fourth pillar which helps equip consumers with the confidence they need to buy their next car digitally – trust in the process. By embracing these four pillars, retailers can take advantage of the opportunities presented by digital retailing.

How Auto Trader can help

Offer consumers a guaranteed part-exchange (GPX) price without the risk of having to purchase the vehicle
Speak to your Account Manager about our GPX product and how you can sign up

Highlight off-site transaction options to consumers
Make sure you’ve updated your profile on Auto Trader with details about any home delivery and click & collect services you provide so these can be clearly displayed on your adverts and feature on our Buy Online hub. Ensure the process for an off-site transaction is clearly displayed and make sure your contact details are clear so consumers can get answers to any questions they may have.

Price to market
You buy at the right price, keeping the live retail market and your margin aspirations in mind. This then ensures you are in line with the market, and your vehicles are priced fairly. Review this often and use the additional space provided in adverts to highlight any features or guarantees that may impact the price.

Convert leads to sales
Leverage the largest, most engaged audience to increase off-site sales by ensuring your adverts are high quality, guarantees and assurances are clear, and leads are responded to quickly, with clear explanations of off-site transaction options and how it could take place.

Want to know more? Just ask, we’re here to help.

We will only use the personal information you provide to us within this form in connection with your enquiry. For further information please read our Privacy notice.

Whilst the current market is far from predictable, it’s a safe bet that those buyers looking to make a purchase early next year are looking at your adverts on our marketplace right now. So what do you need to do to prepare for January?👇
EVs have proven again to be a bright spot in the latest @SMMT figures says @IanJPlummer. Fuel anxiety, greater environmental awareness, and the ‘cool factor’ are all helping to drive sales.
The record growth we’ve seen in used car prices in recent months shows no signs of slowing with November marking the 20th month of consecutive price growth. So where are prices currently at and what we can expect in the near future. Find out now 👉
Did you know that 42% of buyers in January this year did their research in December 2020? With this trend set to continue this year, @AndrewKorpela shares some advice on how to entice January's buyers to your adverts right now, setting you up for success next year.
It's no secret that we've seen the number of buyers considering an electric vehicle grow through 2021. But are buyers really interested in electric vehicles and how does this translate into buying intent? Find out in our The Road to 2030 Report👉
We recently marked our 1 year anniversary since we launched RPM, our online learning platform for retailers. In the last 12 months, we’ve found that retailers who’ve attended these masterclasses go on to sell their vehicles 10% quicker! Find out more -
Auto Trader Connect is now live to all retailers who requested access and who's partners have integrated with us. Auto Trader Connect puts the power of real-time data in your hands, enabling you to more efficiently manage your forecourt. Find out more -
We're still seeing retailers underpricing stock. With demand still high, there is a huge opportunity to make additional profit by pricing to market.
Of all the sales in January 2021, 42% were the result of searches made in December 2020. Make sure you're advertising all of your stock now so that you can kick of 2022 with a bang.
We’ve seen 4 years of price growth in just 5 months and this shows no signs of slowing, with mid November seeing the average price of a used car rising to a staggering £19,852.

Auto Trader Group plc
Registered in England (Company number: 09439967)

Auto Trader Limited
Registered in England and Wales (Company number: 03909628)

Registered address:

1 Tony Wilson Place
M15 4FN
VAT number: GB 614 8918 20

Keep in touch

We use social media to speak to the UK’s largest car buying audience