March saw the number of enquiries for new and used cars received by dealers increase for the second month in a row, with a leap of 13% on the same period last year, according to iTrackLEADS.

The key sales month saw overall sales increase by 4.5% while test drives fell by 1.6%. Handovers continued to be a challenge, with a drop of 29%.

Commenting on the trend, Adrian Favill, director of iTrackLEADS, said: “Against the backdrop of the squeeze on disposable income many households are facing, it’s heartening to see the number of enquiries continue to rise because it is a robust indicator to overall demand.

“While sales also increased against 2022, the supply challenges that plagued the market last year haven’t gone away. It’s essential that dealers remain close to their customers and manage the sales process over prolonged sales cycles.”

iTrackLEADS is part of Mad Devs, a technology company used by 800 dealers in the UK. It has created the iConnect portal to help connect dealers with their customers post-sale.

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