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.
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.
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.
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
Consumers currently find completing many jobs, particularly those later on in the buying
process, difficult or impossible to complete online.
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.
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.
of people prefer to complete jobs fully online without any human support
of people would prefer to complete jobs online with some human support
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.
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 OfficerEmbracing 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.
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.
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.
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