Dealers see enquiries for used cars grow by 5.6% in May

Dealers saw enquiries for used vehicles increase by 5.6% in May.

Overall sales from used operations also increase by 4.2%, according to Dealerweb.

It also reports that finance sales increased by 1.4% against the same month in 2018, while GAP insurance sales fell by 8.9% and paint protection by 0.2%.

Finance penetration for used vehicles declined from 46% to 45%.

Dealerweb says it is clear that online channels are growing in importance, and it is vital that dealers capture these enquiries accurately and respond quickly.

Martin Hill, Dealerweb CEO, said: “Our data shows that dealers are pushing hard by chasing every enquiry to support sales. The volume of prospecting calls increased by 20.1% and demos for used vehicles increased by 2.6% in May.

“Used car operations continue to provide a valuable profit centre. An attractive, used car finance rate that can deliver a low monthly payment will generate more clicks and enquiries, and ultimately, more sales.

“There is potential to grow used car finance penetration, which sits at 45% in May compared to 75% for new vehicles.

“Once the customer has enquired, they expect a quick response and data shows that a prompt response is crucial for sales conversions. Research suggests that 25% of customers expect a reply to a web lead in under a half an hour and almost half within one hour.”

Demand and retail pricing has remained stable in the used market for May.

Data from Cazana shows that the market has moved slightly year on year in terms of pricing. It says that there is still strength in the sub 12-month-old sector, where retail prices have increased by 3 percentage points when compared to the same period last year.

The trend of the last two months around two-year-old and 24k ex PCP product has continued with a drop in retail prices of 1 percentage point in comparison with May 2018.

Three year-old cars at ex PCP mileage have increased by 1 percentage point over the same period last year.

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