UK dealers saw demand for new cars grow by 9.5% year-on-year in December, according to data from Dealerweb.
The latest monthly figures from a study of 800 UK-based dealers revealed that, despite this increase in demand, enquiry levels for new vehicles fell by 7.7%.
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Concerning the used car segment, orders fell by 10% and enquiry levels fell by 12.6%. However, average sale price increased from £18,682 to £20,900.
James Hill, managing director of Dealerweb, praised the “remarkable adaptability” of dealers through 2020. Dealers have successfully “navigated the shifting retail landscape of national lockdowns and regional restrictions”.
According to Hill: “A focus on giving customers a truly personalised experience online and in the showroom has supported both new and used vehicle sales.”
Independent research commissioned by Dealerweb revealed the importance of maintaining high levels of digital support, with 42% of buyers more likely to complete a vehicle purchase if they receive a response to an online enquiry within 30 minutes.
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By GlobalDataThe study also shows that one in three buyers prefer contact by email or text. Consequently, Dealerweb enhanced its product offering, aiding dealers in their efforts to adapt to restrictions and social distancing rules.
The firm’s React platform helped to manage digital and out-of-hours inquiries with a prompt response. Dealerweb React is a web-based system and mobile app designed to secure 100% of web leads.
Hill concluded: “December’s result shows a marked increase in conversion as dealers focused on nurturing each lead. There is anecdotal evidence that there was a rush to buy before the Brexit deal was done due to concerns around tariffs.”
The draft UK-EU agreement – which came into play on 1 January – has alleviated some of the no-deal insecurity for the UK automotive industry. The Trade Cooperation Agreement (TCA) secures tariff and quota-free trade for the industry ‘in principle’, providing the foundations for its recovery.
