Market Report

Market Report September 2019

The eighth Auto Trader Market Report considers what's in store for car retailing and how we must adapt to capitalise on future opportunities and make the industry work better for all involved.

Video

Key findings

Improve the car buying process for consumers... 

 

42%

of consumers are unlikely to carry on the process of buying a car because of the pain points they’ve experienced

33%

would have bought their car sooner if they’d had a smooth experience

... and it will improve for retailers too

Improving the car buying process for consumers, by reducing cognitive load and helping through them through the process, will mean greater financial opportunities for retailers because consumers be more likely to complete the car buying process quicker. It’s a win-win for everyone.

If c 10 million cars are currently transacted at a speed of turn of 3.4 on a car parc of 34 million, increasing the ease of buying a car will increase speed, and thereby the number of transactions. E.g. if we reduce the speed of turn from 3.4 to 3, that will equate to c. one million transactions.

Integration of data will be crucial to make sure retailers have the right stock at the right price with competitive finance options, understand what the consumer has done before and when and why they want to interact.

The physical aspects of car buying remain very important to most car buyers but they're ready for the online transition too

To meet the varied needs of consumers, retailers won’t all look the same. Some will be brand experience destinations which give customers an interactive adventure. Others will be specialist logistic and service centres, or easy-to-access, in town located ‘stores’ where customers can ask questions or touch and tell the car they’re interested in.

Most people still value human interaction of some kind during the process as it's a key part of building trust in the seller, and gaining confidence that they've made the right decision.

Crucially, it's the nature and length of the appointments that will change thanks to the seamless online experience, so each customer service advisor will be able to sell more cars and recognise greater revenue. 

74%

wouldn't buy a car without speaking to a retailer

19.5yrs

People think it'll be nearly 20 years before new cars are bought without any human interaction at all

Not only does the car buying experience need to be seamless it needs to be more transparent 

Finance options have removed some of the barriers to buying online because it's considered less risky. But prices need to be more transparent and all available finance options need to be clear so that car buyers can choose the best way to pay for a car for them, complete all the paperwork and finalise the deal from the comfort of their living room. Making the entire transaction more efficient for them and for retailers. 

45%

said they would buy a new car online without seeing it in person if bought on finance deal

64%

of 18-34 year-olds would buy online with a finance deal

88%

said they would buy a new car online without seeing it in person if bought on finance deal

75%

think it's difficult to work out the actual price you'll pay for a car

 

Conclusions

There's no getting away from the important offline elements of the journey. There needs to be a seamless, omni-channel experience for consumers so they can choose the journey that's right for them - be it online or offline, or any combination of the two. A one-size-fits-all approach won't work, so we need to create an experience that's flexible enough and blended enough between digital and physical to cater to everybody's needs. 

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.

Over 75% of all time spent on UK automotive sites is spent on Auto Trader. 20% more leads were delivered to retailers in 2021 than in 2020, a sign of strong buyer intent and the ever-increasing importance of online in the buying process. https://t.co/AySv9w7RwG
Over 75% of all time spent on UK automotive sites is spent on Auto Trader. 20% more leads were delivered to retailers in 2021 than in 2020, a sign of strong buyer intent and the ever-increasing importance of online in the buying process. https://t.co/YiU38W6Vc5
Our CEO Nathan Coe will be live on next week's webinar to answer your questions. You can submit your questions to him in the comments and when you register to join the webinar live at https://t.co/rdtNiD8APu https://t.co/d99VfhPofQ
Last week saw the 89th week of consecutive used car price growth, with prices rising 28.6% year-on-year. With used car prices continuing to rise it’s crucial to keep repricing your stock inline with the market to ensure you aren’t leaving profit on the table. https://t.co/MRHJVoNvzs
2021 was a record year for new electric vehicles on our marketplace which saw a record number of advert views in 2021, with 1 in 5 new car advert views now for an electric vehicle. What EVs do you think we'll see drawing the most attention in 2022? https://t.co/niblnnJaPl
Looking to evolve your business by breaking free of outdated data feeds and enabling your customers to have a real-time view of your digital forecourt? Then check out our ‘Essentials to connected retailing’ masterclass now 👉 https://t.co/VggO5GDvFa https://t.co/hRUW9aXDTf
We’re still faced with an element of uncertainty when it comes to the pandemic which means you need to be prepared for any eventuality. So in this week’s tip of the week, @AndrewKorpela shares some top tips on how to make sure you're prepared for whatever is thrown at you next. https://t.co/9cKawLT6Q9
In his latest update, our CEO Nathan Coe shares our latest market insights, including an analysis of consumer demand and pricing, and reveals our plans for 2022. https://t.co/oyxwpJf2U1
With record numbers of new electric vehicle sales and, as we reveal in our latest blog, an electric vehicle being the fastest selling of any used vehicle in 2021, last year really was a victory for voltage 👇 https://t.co/j4Al3nByBL
In our latest Monthly Market Intelligence Report, we analyse the 3 key trends that came to define the automotive industry in 2021, record demand, the growth in used car prices and the acceleration of EV adoption 👉https://t.co/tVW6vpQjxm Will these trends continue through 2022? https://t.co/rITl15odBm

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
Manchester
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