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by Marsh Finance on Dec 17, 2024 4:15:28 PM
👉 5 key tips to prepare for a successful year ahead
👉 Looking ahead
👉 Stay informed, agile, and ahead
As we close out 2024, the car market is showing encouraging signs of recovery. Despite economic pressures, consumer confidence is returning. Auto Trader’s data reveals a 6% year-on-year growth in site visits, reflecting steady buyer activity. That’s an average of 31 visits per second – clear evidence that car ownership remains a priority for UK consumers.
Even more promising, new car retail demand grew by 15% in November, driven by significant discounts across the market. While challenges remain – such as cost-of-living pressures and high interest rates – the market’s resilience presents opportunities for car dealerships looking to thrive in 2025.
So, how can dealerships adapt to this shifting landscape?
5 Key Tips To Prepare For A Successful Year Ahead
Prioritise Online Presence
With consumer confidence returning, more buyers are turning to digital platforms to research and purchase vehicles. Ensure your website is user-friendly, up-to-date, and showcases live inventory with detailed listings. Platforms like Auto Trader continue to drive high traffic, so maximise visibility by optimising your online adverts and descriptions.
We know AutoTrader can be costly, so why not advertise your stock for free with Marsh Finance’s car marketplace? It’s really easy to sign up; learn more about Marsh Finance’s car marketplace here.
Leverage Discounts Strategically
The data shows discounts are driving demand, with new car discounts averaging 9.2% of RRP this year, peaking even higher for EVs. Strategic discounting can be a powerful tool but be cautious not to erode margins. Use offers to highlight specific vehicles, attract hesitant buyers, and boost short-term sales.
Diversify Stock To Match Demand
Focus on stocking the vehicles buyers are seeking. EVs continue to gain traction, capturing 20% of new car leads in November. However, demand for used cars, particularly 3-5-year-old vehicles, remains high as supply tightens. Diversifying your stock across new, EV, and high demand used vehicles will keep you competitive.
Enhance Customer Experience
Buyers expect convenience. From faster response times to transparent finance options, offering a seamless customer experience – both online and in-person – builds trust and loyalty. Provide clear finance solutions and embrace digital tools like finance calculators to help customers navigate affordability.
Monitor Consumer Confidence Trends
The car market is evolving quickly. Keep a close eye on monthly data insights to stay ahead of trends in consumer demand and stock movements. Being proactive will allow you to adjust strategies and capitalise on market opportunities early.
Looking Ahead
While challenges remain, the returning consumer confidence and rising demand for vehicles provide a positive outlook for 2025. By strengthening online engagement, optimising stock, and enhancing customer experience, car dealerships can confidently position themselves for success in the year ahead.
🚘 Stay Informed, Agile, And Ahead
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