Auto Trader says new car market is ‘firmly on track’ for a record 450,000 units.
- 1.2 million consumer valuations will take place on autotrader.co.uk in September
- Nearly one in five deals threatened by part exchange negotiation break-down
Half way through the month, and the new car market looks to be on track for a record September tally of 450,000 units. Experts at Auto Trader are also forecasting a record volume of consumer valuations via its site, with more than 1.2 million taking place in the month.
But while signs look positive, the company has warned of research which suggests a significant proportion of showroom deals could break down during part exchange negotiations. While nine in ten walk-in buyers have an expectation of what their part-ex is worth, 18% of deals fall through at the part-ex negotiation stage.
“September is gearing up to be another bumper plate change month for retailers,” commented Karolina Edwards-Smajda. “But it is surprising that so many deals break down in the showroom, often as a consequence of difficulties with price negotiations. Unrealistic expectations about the value of a part exchange are cited by retailers as one of the most common reasons for this failure.
“We are currently working on a product that could help buyers and sellers start a conversation on the same page. If we can help facilitate a dialogue on part exchange values earlier in the process, when buyers are seeking information online, then we could help both parties align before the visit to the showroom. That could significantly reduce the haggle-hassle factor on the forecourt and seal more deals.”
Consumers have myriad sources with which to value their cars today, but more than a million a month are now being undertaken via Auto Trader, the country’s largest online marketplace for buying and selling new and used cars. Valuations are based on a retail-back approach which means the starting point is what cars are actually selling for on forecourts throughout the UK. These are then adjusted for trade to ensure buyers get a fair price – and that retailers make a fair profit.
Notes to Editors:
Auto Trader Group plc is a 100% digital business having successfully completed the transition from a print title in 2013. Auto Trader sits at the heart of the UK’s vehicle buying process and operates the UK’s largest digital automotive marketplace.
Auto Trader’s primary activity is to help vehicle retailers compete effectively on the Marketplace in order to sell more vehicles, faster. The Marketplace brings together the largest and most engaged consumer audience. Autotrader.co.uk attracts around 44.5 million monthly cross-platform visits on its sites, with around 68% of visits coming through mobile devices, with the largest pool of vehicle sellers (listing more than 400,000 cars each day). In fact over 80% of all time spent on classified sites is spent on Auto Trader. The Group does not buy or sell any vehicles itself.
Auto Trader has around 92% prompted brand awareness in the UK, with 80% of UK retailer forecourts advertising via the website and around 65% of UK used car transactions involving cars listed on autotrader.co.uk.
Auto Trader’s market-leading position enables it to generate and collect large amounts of data on the UK’s automotive marketplace and leverage it to create a suite of services that allow retailers to:
- BUY – buy the right vehicles, at the right price
- MARKET – market their brands and businesses effectively in the digital world
- SELL- sell more vehicles through advertising on the UK’s largest digital automotive marketplace
- MANAGE – optimise their stock turn and vehicle margin.
For all trade media enquiries, please contact:
Nigel Wonnacott, PR Director at JJ Marketing, on 07802 483 971 or firstname.lastname@example.org