With many sources anticipating a big rise in demand for used cars post-lockdown[i], and many used car dealers struggling to meet that demand due to a lack of stock, we’ve taken a look into how you can turn this change in the market into a benefit for your business.
The demand for used cars seems to have risen significantly, with CarDealerMagazine estimating a demand of 50% higher than pre-lockdown numbers[i]. Coronavirus has caused people to change the way they travel, with public transport more likely to be avoided, meaning a used car is the perfect alternative to commute and get around.
Take advantage of increased enquiries
With demand on the rise, take a look at your stock and see if your pricing is competitive. If your cars are selling like hotcakes, you know you’re onto a winner – maybe you need to get more of the same. The important thing is to be visible, so update your website, your social media and ring up your old contacts to get things moving. CarDealerMagazine released an article showing used car prices have gone up by 6.1% year-on-year, so it’s a seller’s market.
The key thing is to take advantage of the increase in enquiries, maybe by bringing in more team members to help you sell, or perhaps you need to manage customer expectations differently, even if you do have to pre-warn a customer that it might be a slower process. A lot of used car traders are now doing ‘no contact’ vehicle collections which can take a bit more planning.
Take advantage of excess stock
With news around that stock is diminishing while enquiries are rising[i], it’s important to take a look at any stock you couldn’t shift over the lockdown period. If other traders are struggling to bring in stock, the vehicles on your forecourt might be the reason that a customer chooses you over another local dealer. This is the chance for you to build a good rapport with a customer and spread the word of your business to different areas.
How have you found sales after lockdown? Has the used car boom benefitted your business? Let us know in the poll below.