What does the summer hold for dealers?

It was a long winter for Britain’s dealers.  With showrooms closed due to lockdown restrictions, dealers had to adapt to remote selling, and many made the best of it. However, the situation was far from ideal.

As lockdown started to lift, the industry has seen a big jump in orders. Across the country, dealers are managing a significant uplift in enquiries and sales of new and used vehicles.

Data from Dealerweb showed a record leap in the volume of orders for new and used cars in April, which is a testament to the resilience of dealers across the UK.

The figures, which echoed data from the SMMT and other industry sources, showed a 2,569% increase in new vehicle orders and a 1,524% increase in used orders compared to April 2020.

While the percentage increases are huge due to comparing a month in full lockdown against a month of partial reopening, they do illustrate how far dealers have come in spinning up digital offerings, remote selling and managing social distancing requirements.

As we move into the summer months, we expect to see strong consumer demand continue.

Enquiry levels are healthy for both new and used cars. Looking at the wider economy, the Bank of England expects the UK economy will enjoy its fastest growth in more than 70 years as Covid-19 restrictions are lifted.

There is also some evidence that more people will seek to buy a new or used car as they remain wary of public transport.

Dealers have seized the opportunities presented by digital retailing and can retain this business in addition to more traditional customers as social distancing rules are hopefully removed in June.

With a busy few months ahead, it is more important than ever to collect lead management data and manage each enquiry in a structured way. It will boost conversion rates and ensure that each buyer receives a consistent ‘on-brand’ experience.

James Hill is the managing director of Dealerweb.