Motor Trader The award-winning and longest running UK magazine for car retailing professionals. Your first stop for News, Jobs and Reports for the motor industry.
Last year was anything but easy for UK dealers, with both new and used vehicle registrations down.
With a mixture of Brexit, a predicted further decline in vehicle sales and uncertainty over diesel forecasted, difficulties are expected to continue over the next 12 months, according to the Society of Motor Manufacturers and Traders (SMMT).
So how can businesses adapt to the threats facing them and where are the opportunities for growth? CarGurus polled over 400 dealers as part of its inaugural OneVoice report into the UK’s used car sector to find out.
One of the key issues highlighted by dealers was the growing difficulty in sourcing stock due to a decline in the number of part-exchanges taking place.
Over 80% of dealers said they are struggling to find high-quality stock and admitted they would have to further reduce margins in 2019 to help balance the books.
To their credit, dealers are not standing still in the face of these economic headwinds. They are responding to the market challenges in a variety of innovative ways.
One of the strategic trends identified by the CarGurus OneVoice report was the move towards digitalisation. Over 70% of dealers said they have already adopted advanced digital practices that include online finance configurators, search engine marketing and online trade-in valuations. The consumer is moving online and it’s important dealers keep up with this trend.
Another opportunity lies in stock portfolio. A growing number of dealers are moving away from a traditional petrol-diesel mix and towards alternatively-fuelled vehicles, which saw a 21% growth in the last 12 months according to the SMMT. As one new car market slows down, another one is opening up, providing an area of growth for smart, forward-thinking businesses.
With so many challenges ahead, it is important for UK dealers to remember there is still opportunity in hardship. The key is in identifying it and being flexible enough to change and capitalise upon it.
Wendy Harris is vice president European sales at CarGurus