See all Motoring News Used car prices increased by a significant 9.6 percent between April and June 2021, marking another quarter of growth in residual values. The reopening of dealerships in May 2021 coincided with a surge in consumer demand which led to an 8.4 percent increase in market pricing for volume brands and an 11.6 percent increase for premium brands.
It is vitally important that dealerships review their stock pricing on a regular basis in order to keep their vehicles in the optimum bracket of plus or minus five percent of the average market price. Car buyers are increasingly-informed on the market average prices of the vehicle that they are searching for online, and are spending more time than ever before using online channels during the research phase.
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Research shows that vehicles that are priced too far below the market average can raise caution for the consumer. If a high quality vehicle is priced well below the market average, the consumer perceives it as ‘too good to be true’ and may move on to the next advert. Did you know some dealerships are not pricing their vehicles effectively? Carzone’s pricing and health check data is designed to enable dealerships price their stock in the most efficient and profitable way.
Consumer behaviour has changed throughout the pandemic with car buyers embracing digital tools more than ever before, so it is important to regulary optimise and review your online showroom. Carzone’s latest motoring report shows 85 percent of car buyers are more likely to consider a car that has monthly finance costs displayed on the advert. Car buyers can now search for vehicles on Carzone by the monthly cost and also with a deposit amount, which creates new opportunities for dealerships to connect with consumers who are in the advanced stage of their car buying journey.
With the ability to see their potential monthly payment, consumers are choosing to contact sellers with finance displayed on their adverts and to find out the trade-in value of their vehicle. Sellers with finance costs displayed on their adverts receive over two times more trade-in leads than those who do not. This means sellers with monthly finance cost displayed get more high-quality leads and also gain the opportunity to replenish their forecourt with trade-in vehicles.
Displaying finance costs on Carzone adverts also enables dealerships to increase their profitability through faster speed of sale. On average, dealerships with finance on Carzone turn their forecourt seven days faster than those without. Carzone's Mobile Sponsored Adverts product also helps dealerships to get ahead of the competition by prioritising their adverts at the top of Carzone’s search results. Dealerships with Mobile Sponsored Adverts return on average.
- 140% more Mobile Search Results per month
- 105% more in Ad Views per month
- 115% more leads per month
This increases stock turn and profitability significantly. Dealerships with Mobile Sponsored Ads sell their cars 10 days faster than those who do not utilise the product. To find out more on how Carzone’s products can help your business please contact your sales rep or call us at 01 4490650 or email [email protected]