Demand for EVs Boosts Used Car Values

Manufacturers have been introducing their versions of advanced electric vehicles to the market for some time now, providing car buyers with plenty of choice when the time comes to make the switch from traditional fuel-type vehicles.

Dealers have speculated what this means for their businesses, how much of an impact this will have, and just when EVs will become a popular trend. Cap HPI found a pattern in their research. 

Recent Effects of High EV Demand  

According to experts at Cap HPI, pre-owned EVs saw an increase in value during last September, even despite unchanging performance throughout other areas of the sector. This month alone, AFV values have risen by 0.9 per cent, showing strength amongst fully electric vehicles such as Tesla’s Model X and S models.  

Overall Trends 

Cap HPI’s results show that, while one-year-old city cars have increased in value by 0.4 per cent, older and higher mileage vehicle have indeed lost value, with decreased demand.  

SUVs could see an increase in value in the run up to winter this year, and, with a healthy demand and the flow of market stock being not as heavy in September, overall values have remained balanced or somewhat increased.  

Though models such as Ford’s EcoSport are known for being desirable on the used car market since first introduced, values boosted even further during September this year.  

‘’There was an interesting dynamic regarding supply into the used car market. On the one hand, late-plate volumes were higher than normal due to the August pre-registration activity – although this was not prevalent amongst all manufacturers’’, Cap HPI’s Head of Current Evaluations, Derren Martin, commented.  

‘’Almost to counter this volume, with new car registrations in September being lower than in previous years, the volume of fleet returns and consumer’s part-exchanges has been far lower than previously. 

‘’Volumes of pre-registered cars do not tend to be remarketed through the auction halls, so numbers there have generally been lower.’’  

What the Cap HPI Experts Said  

After gathering results from their research, experts at Cap HPI have predicted a strong and stable used car market throughout the upcoming weeks. However, supply and demand dynamics should be observed at a micro level, ensuring both trade and retail data are also closely monitored during each month.  

Derren Martin commented on the general trends in the second-hand sector. He said that: ‘’With retail demand unlikely to dissipate anytime soon and supply lower than normal, there is the potential for prices not to drop by as much as they have done at this point in previous years.’’  

Martin further added, ‘’The average drop during October over the last four-years was 1.7%, with it being as high as 2.2% in 2015. Last year it was just –1.2% and this year there is the possibility it will not even drop by that amount.’’

To find out about how Click Dealer can help your dealership make the rest of 2018 successful, get in touch via [email protected] or 01782 454354. Alternatively, you can send us a message through our contact page. 

How to Maximise Your Dealership’s Add-On Product Revenue

With less than three months left of 2018, car dealers may be feeling the pressure to meet financial goals. Value-added products could be an important focus for improving takings.

The key to selling add-on products like GAP insurance, paint protection service plans and warranty packages is actually understanding how much they can benefit consumers.

GAP Insurance

After a 2014 study revealing that people were paying too much for GAP insurance, the FCA encouraged buyers to shop around more, aiming to create more competition between car dealers selling it as an add-on and direct sellers offering it as a standalone product.

More recently, the FCA’s evaluation of the intervention contradicted the results that the body was expecting, with add-on sales still proving far more popular, accounting for 92% of the market. This just goes to show what a great opportunity dealers have to introduce GAP cover to customers and convince them of its benefits.

Insurance Distribution Directive

Now we are in October, the Insurance Distribution Directive (IDD) has taken effect, requiring dealers to review their insurance products and staff training processes and ensure the way in which they are operating is compliant with IDD regulations.

GAP providers should be offering high quality products, which are good value for money, as well as giving retailers the latest product support. The change should help you to deliver a better, more transparent service to your customers, making it easier to identify the need for the cover and helping to improve your sales performance.

Make sure your insurance products are competitively priced and that you are confident in the benefits that they bring to buyers. Your sales processes should be well-thought out and implemented consistently by your team too. This will ensure that your dealership is in the best position to maximise add-on sales.

Add-On Sales Performance Management with Click Dealer

If you want to improve your add-on sales revenue, ClickDMS can help you keep track of performance so that you have visibility of the impact of your efforts. Simply enter the costs of all of the products you offer into our system once, and when you make a sale, you’ll just need to click to add them to the deal.

When you want to know the profit that you’ve made on these products at the end of the month, our system will do the calculation automatically, saving you the time and effort of working it out manually.

Add-On Product Promotion with Click Dealer

Another way in which Click Dealer can help with add-on sales is by making changes to your website. Insurance providers should be able to equip you with IDD-compliant materials and Click Dealer will be able to upload guides and videos to your site to help promote the products you offer.

ClickEngage™, will always take customers through the value-added products on offer and you can also opt to have promotional material featured if you are using this software to help users understand and see the benefits of them.

For further information about how Click Dealer can help you improve your add-on sales performance, get in touch today via [email protected], 01782 478220 or through our contact page!

Click Dealer’s Bangers4Ben preview: Part 2

This Friday, our four Clickers will make the journey down to Surrey to meet up with their fellow competitors for the long trip ahead. This week, Director and Head of Web Ollie has had a switch up, with our Social Media Guru Joe Podmore joining him in the Japanese soft top!

Ollie’s original partner Lee had to let his place go, leaving a space for Joe to jump straight in, let’s hope he packs light!

Ollie

Ollie is no stranger to the track, he loves nothing more than thrashing cars and bikes alike around a variety of circuits, he’s also well versed in sliding off them!! Despite Jake’s bravado, Ollie has no concerns about beating Smooth Booth and the rest of the competitors!

Though Ollie is confident behind the wheel, it’ll be interesting to see how long his music stays on for. It’s not uncommon for his tracks to feature barking dogs in the background, good luck Joe…

Other than his obvious excitement for the driving, Ollie is also looking forward to socialising with the other drivers, alongside a few beers of course. And a few more beers for good measure… Although he’s more accustomed to turning a spanner on a bike, Ollie still feels he could have a good go at fixing anything that goes wrong in his trusty MX-5.

Joe

Joe and Ollie have a shared affinity for two wheels, it’s a shame the rules call for four wheels as they’d have more space with a bike and sidecar! It seems Poody is looking forward to the cramped conditions, if only to make for a better atmosphere when he plays his self-proclaimed ‘none stop bangers’.

When it comes to track driving, Poody has little experience when compared to his veteran driver Ollie, he does however believe he’s got a trick up his sleeve! Between work and his strict partying schedule, Joe has been clocking up the virtual hours on his beloved Forza 7; he’s certain this will give him an edge over his fellow racers!

As you’d expect, both of our drivers are extremely excited for this one of a kind trip, however, once again Joe seems particularly ready to sample a Belgian Ale or 2  when the teams break for the day! Let this be fair warning to the cougars of Europe!

When it comes to the idea of fixing their car, Poody is quietly confident. His secret? He’s got his Dad on speed dial! Although those handy-man genes haven’t been passed down to Joe, he’s confident that with some Facetime guidance, he can fix pretty much anything!

If you’d like to support our brave Clickers on their fundraising adventure, you can donate here. All the proceeds go to Ben.org, an independent charity and dedicated partner to the automotive industry, providing support for life for its people and their family dependents, with a mission to make a positive difference to people’s lives.

Revhead Ramblings: Would you let me drive your car?

It seems nearly all of our services are now accessed through a subscription.

From music to the gym, our lives revolve around monthly payments; but would you add your car to the list?

The Premise

Geely, the Chinese automotive manufacturer, own a variety of car brands. The likes of Volvo and Lotus are well established in the car world, whereas Lynk&Co is new to the table. The latter, is an entirely new car manufacturer, the ‘Co’ doesn’t stand for company however, it stands for connected.

Not in the sense that you can access the internet or make phone calls. Their cars will feature a button on the dash to let you share your car with other subscribers, earning you money when you don’t need your car.

Subscription is the Way Forward

While you can buy one of their cars outright, the primary sales route will be a subscription service, like the one used by Polestar. Contracts would be short term, but the big twist comes when you press the share button, this would allow the car to borrowed by other subscribers first and then to a wider network as/if it takes off.

Who’s This For?

I’m sure there are plenty of people who, like me, would never in a million years lend our car to a friend, let alone a complete stranger. Who knows what they’d do in there? Plant cameras, change my radio presets or adjust my seat! I’m sure this would be appealing to those who work away in the week, or commute via public transport though.

Why pay hundreds of pounds per month for something you can only really use in the evening or at the weekend? They could release their car in the day, earning money in the process, and still have the car when they need it!

Uber Rival?

Lynk&Co say they aren’t coming for any car manufacturer, they see their main rival as Uber. Their target audience therefore is a younger demographic, or those who live in urban areas where owning and storing a car is too much hassle.

There are plenty of car sharing platforms on the rise at the moment, with Volkswagen starting their own model in Berlin, only time will tell if people really will put their shiny new cars in the hands of complete strangers, or if Uber and taxis will reign supreme in the urban jungle.

I personally could never see myself loaning a car out, I’m reluctant to let my Mum move it to let herself out of the drive, imagine someone you’ve never met getting comfy in your seat? I can however see the appeal to those who live in cities, owning a car is expensive as it is, when you add congestion charges and parking to the mix, why would you keep your car there?

Ride sharing would grant you access to a car when you need it, without worrying about anything other than having access to the app; I’m very much looking forward to seeing how this pans out…

Click Dealer’s PPC Jargon Buster

What Is PPC?
PPC is a discipline littered with baffling terminology which can make this form of advertising seem very complex. Click Dealer’s jargon buster is designed to help PPC novices get to grips with some of the most important concepts.

Our search engine marketing experts at Click Dealer have spent a lot of time mastering the ins and outs of PPC and we have put together a glossary of key terms that we believe will be useful for car dealers wanting to create effective PPC campaigns themselves.

Ad Extensions

Ad Extensions
Extensions can be used as a way to make your PPC ads more appealing, so they are more likely to be clicked. Options include phone number, business address, sitelinks, callouts and review extensions.

 Ad Group

A group of keywords used in a particular campaign.

Ad Rank

The sum of your Quality Score x CPC, this value will determine the position of your ad on search engine results pages.

Click-Through Rate (CTR)

The number of users who clicked on an advert divided by the number of overall impressions. CTR is used to measure how successful a campaign is.

Conversion

When a set goal is completed, for example, an enquiry form is submitted, this is known as a conversion. Search engines will track visitors to your site and can reveal how many conversions occurred after a user clicked on your PPC ad.

Conversion Rate

Number of conversions divided by the number of clicks an ad has received.

Cost Per Acquisition (CPA)/Cost Per Lead (CPL)

The average amount spent per conversion.

Cost Per Click (CPC)

The amount advertisers spend for each click their paid result gains.

Google Display Network (GDN)

Websites that have consented to Google showing adverts on them are part of the Display Network. Unlike the Search Network, the GDN supports image and video ads.

Google Search Network (GSN)


The most popular virtual space for businesses to advertise, Search Network adverts are those which appear on search engine results pages.

Impression

Every time a PPC advert is displayed, whether it is clicked or not, this is known as an impression.

Long-Tail Keyword

Long-tail keywords are highly-specific terms which typically have less competition and high conversion rates.

Quality Score

A score given to ads, which Google calculates by looking at factors such as the relevance of keywords to the search query and user experience on the landing page. Quality score, along with CPC determine ad rank and position.

For more information on PPC Marketing Services from Click Dealer’s expert in-house automotive SEM team, get in touch today via [email protected], 01782 478220 or through our contact page!

How to Sell More Cars Online

Digital retail is becoming an increasingly popular option, but making it work for your dealership isn’t a walk in the park.

Making digital vehicle retailing successful requires commitment and building trust with customers.

Committing

We have seen a lot of our dealers committing to ClickEngage™, adapting their processes to respond to digital enquiries. This dedication has been rewarded, with the dealers getting more leads and finding them easier to manage with the software.

Incorporating online retail is not something to simply dip your toe into, if you choose to do it, you must commit to it if you want to see the best results, and this is likely to involve making changes in other areas of your business.

Finding Other Ways to Build Trust

One of the challenges to selling cars online rather than in person is that it can be difficult to acquire trust, but there are ways to do this online. If a customer is going to reserve a car before viewing it, they will want as much detail as possible, so you must make sure that your vehicle description is thorough and accurate and that you provide photos which give consumers visibility of every angle of the car.

Displaying reviews on your website as well as external sites is also a great way to build trust with new customers, because previous customers are impartial and have no reason to be dishonest.

Video is a powerful tool in building trust. Video presentations and 360-degree images can be even more effective than photos because it is harder to hide things, and it simulates the experience a customer would get if they were to visit the dealership and walk around and sit inside the vehicle, without having to be there in person.

Lead Generation

As I said before, if you try online retailing, you have to commit, and part of this involves promoting your new service and driving customers to it, because if people don’t know that you have this new method of buying cars which makes their life more convenient, you can’t expect them to use it.

Yes, this may mean investing more resources, but you must have faith that the reward will be far higher than the cost. A good start would be to send a mass marketing communication informing customers that they can now be in control of their own deal and reserve a car from the comfort of their own home!

This would also be a good time to allocate more of your budget to digital forms of lead generation, which will reach people who are most likely to buy cars online. Enquiries from advertising portals will drop into ClickEngage™ and take customers through the process immediately so this is a great place to advertise and capture leads.

PPC and SEO are also great methods of lead generation, sending customers directly your website where their enquiry can be handled by your online retailing software which is why ClickEngage™ and ClickSEM go hand in hand.

If you are concerned that you are not using ClickEngage™ to its full potential or you would like to find out more about our online vehicle retailing software and SEM services, get in touch via [email protected] or 01782 454354. Alternatively, you can send us a message through our contact page. 

Revhead Ramblings: Our Battered, Old Roads

It seems you can’t go 100 yards without hitting a pothole on Britain’s dilapidated roads. From motorways to single-track lanes, road defects are everywhere.

This issue came to mind when I was driving back from work Tuesday afternoon, following my usual route I took a left-hand bend that nearly brought a motorcyclist to a grisly end. Instead I swerved, avoiding him but planting my driver’s side wheels directly into a succession of potholes.

Fearing the worst, I limped my wounded vehicle into a gateway and assessed the damage. A pancaked rear seemed the worst of it, after attaching my space saver, an aftermarket purchase, I made it home and sent my wheel off to be repaired. I later learned that my front wheel had buckled too; far from ideal.

Who’s to Blame?

So, thanks to my speedy reactions, I was faced with a £200 bill. Obviously, it could have been worse, helmet dents are notoriously difficult to remove from a bonnet, but it did make me question, why are potholes the size of moon craters allowed to exist?

A combination of the weather, underfunded councils and digging-mad utility companies are all to blame for our road acne.

New Homes Causing Issues

With each new housing development, power, water, internet and waste disposal all have to be threaded through, this often means taking up large portions of our roads. While we can accept road works for a few days, the ensuing repair work to poorly replaced roads are simply unacceptable.

The AIA (Asphalt Industry Alliance) estimates two million holes are dug by utility companies every year, however Transport for London calculates that 1 million are dug in the capital alone, making the former figure seem more than a little conservative.

Golden Age

We didn’t know it at the time, but 2007 was the golden age for our roads. The economic boom encouraged us to spend more on the backlog of road maintenance previously neglected, a run of mild winters also limited the number of new potholes being created too. It’s estimated that to repair all of the damages on our roads now would cost an extra £8.5 billion.

Is There a Solution?

It seems we’re trapped in a never-ending cycle, we continue to fill potholes at a considerable pace, but more and more continue to crop up. The only true fix would be to replace all of our roads with glistening new asphalt, however the cost would be astronomical.

For now then, the most we can hope for are well-maintained A-roads and manageable B-roads. As for avoiding these road craters, we just have to hope Pete Dungey comes along sometime soon with his bag of compost and brightly coloured primroses!

Click Dealer Shortlisted for the F&I Conference and Awards 2018

FI-Awards-2018
Click Dealer will be attending the F&I Conference and Awards 2018 as a finalist in two categories: the Digital F&I Award and the F&I Product Innovation Award.

Now in its eighth year, the F&I Conference and Awards celebrates the achievements of businesses within the automotive industry, including car dealers, finance brokers and lenders, insurers and other F&I suppliers.

This year, the awards ceremony will take place at New Dock Hall in Leeds on 18th October, hosted by Journalist, Broadcaster and TV Presenter, Louise Minchin. Gyles Brandreth will also be attending as a guest speaker.

There has been a record number of entries this year, so to be considered a worthy finalist by the judging panel in not just one but two categories is a real honour.

F&I Digital Award

The F&I sector is experiencing the effects of digitisation, which has brought changes in consumer behaviour and interaction with dealers and brokers. Recognising the importance of embracing modern technologies, the F&I Digital Award will be won by a dealer or service provider adopting digital approaches to improve their quality of service and customer engagement.

ClickEngage™, our online vehicle retailing platform, enables dealers’ customers to create their own deal, complete with finance quotes, entirely online. As well as saving dealers time and helping them capture leads, ClickEngage™ improves the standard of service offered to their customers, giving car buyers a more flexible and convenient way to purchase a vehicle.

F&I Product Innovation Award

Innovation is vital for the evolution of the F&I industry as the market changes, and the F&I Product and Innovation Award will go to a dealer or product provider that has created a product, process or service which is making a significant impact and driving performance in response to changes in the market.

As the first end-to-end online vehicle retailing platform, incorporating part-exchange valuations, finance quotes and add-on products, ClickEngage™ is revolutionising the way in which used cars are bought and sold.

Our product was developed in response to global changes in consumerism; with the rise of online retailers offering one-day delivery, customer expectations are higher than ever. ClickEngage™ enables people to shop for their next car online at any time of day and reserve instantly, making the process more convenient for buyers and giving forward-thinking dealers the opportunity to cater to and exceed the expectations of their customers.

Click Dealer could not be prouder of the recognition that ClickEngage™ has achieved and we are looking forward to the F&I Conference and Awards next month with our fingers crossed!

To find out more about how ClickEngage™ can make an impact in your business, get in touch via [email protected] or 01782 454354. Alternatively, you can send us a message through our contact page. 

Click Dealer’s Bangers4Ben preview: part 1

With less than three weeks remaining before our heroic Clickers embark on their mammoth 1600-mile journey, we thought it was fitting to get some behind the scenes gossip and some insight into their preparation!

Our first team, comprising of Steve Connor and Jake Booth, have gone German for their ride. An E46 3 Series is the car of choice to take them across Europe; a comfy 5-seater, there’s more than enough room for the two to spread out!

Smooth Booth’s Bangers Preview:Jake Booth

Speaking to Jake Booth earlier this week, he was more than happy to share his views regarding the trip! His overwhelming feeling is that of excitement, a 4-day trip could put a strain on anyone’s relationship, however Booth is confident that the desk buddies are more than capable of keeping on each other’s good side throughout! His confidence in the car is high too, with a history of tinkering, Jake feels he can put a stop to any pesky leaks that try to hinder their progress!

Having spoken about the journey, we quickly moved to the topic of track driving! With heaps of experience, Jake’s got no worries when the lights turn green. He feels his ‘no fear’ attitude behind the wheel will be the key to posting blistering lap times around Europe’s greatest tracks!

High speed driving is up there with Jake’s greatest passions, a close second however are movies! He’ll get to see first-hand the set of one of his favourite movies, ‘In Bruges’. Let’s just hope they steer clear of the bell tower…

Stevie Connor’s Pre-Tour Thoughts:

Steve shares Jake’s level of excitement for the trip; the same however can’t be said for his confidence in the car. Despite Steve’s background knowledge in fixing cars, albeit Fords, Steve isn’t sure his German stallion will be able to hold up to the brutal long distances and even harsher treatment on the track!

Steve, who has never been on a track before is playing it cool in terms of rivalry, he explains that Ollie and Lee’s Mazda holds all of the racing pedigree and their weight advantage should see them into the distance.

Steve however isn’t in it for the winning, he’s most looking forward to the camaraderie amongst his fellow competitors; I suppose now is a bad time to explain Ollie and Lee’s Top Gear attitude if they were to break down… Steve loves to dish jokes out around the office, he’s happy to show this off on the trip too. With a megaphone attached to the roof, no one is safe from his quick tongue, best get ready Lee!

Team one seems to have it all sorted, the perfect outfits, the perfect car and a strong friendship. However, there’s one thing that could bring it all tumbling down… The music! With both team members adamant they’ll have control of the aux cord, will it push them over the edge?

Steve’s team quickly jumped to support him on the playlist issue, with Callum Loveday saying ‘His playlist is legendary, I like Jake’s music, but it has nothing on Steve’s! If he doesn’t get control of the stereo, it may well be one of the greatest tragedies in modern music…’

If you’d like to support our brave Clickers on their fundraising adventure, you can donate here. All the proceeds go to Ben.org, an independent charity and dedicated partner to the automotive industry, providing support for life for its people and their family dependents, with a mission to make a positive difference to people’s lives.

Drivers Between 18 and 36 Years Are Most Likely to Buy Self-Driving Cars

As manufacturers race to bring their versions of autonomous cars to the market, it seems increasingly likely that we may start seeing vehicles driving themselves on our roads in the not too distant future.  

The question is, are consumers ready for them? Avis Budget Group gathered opinions through a recent survey. 

Avis Budget Group’s latest survey revealed that motorists between the age of 18 and 36 are ‘most likely’ to invest in an autonomous vehicle, however, this age category appear to find it difficult to define what autonomous means.  

The team, who surveyed 14,000 motorists from 14 European countries, discovered a wide knowledge gap in consumer understanding. When asked to provide a definition of ‘connect’ or ‘autonomous’ vehicles, 24 per cent of the survey respondents did not know the correct answer.  

On the other hand, around 56 per cent of those who completed the survey were able to give the correct definition of what autonomous means, identifying the term to mean ‘a car which drives itself’.  

‘It’s clear as an industry we need to educate consumers across markets and age groups, highlighting the innovations and technological advances that have been made – which have helped make developments that were once only seen in science fiction, a reality’’, says Avis Budget Group’s president of international, Mark Servodidio.  

Although the survey revealed that the younger generation would prefer an autonomous vehicle, the lowest understanding of the term was found to be of those mostly aged 18-23 and 24-36. Respondents aged 66 and over appeared to have a wider understanding of self-driving cars yet expressed very little interest in making an investment compared to those of a younger age group. 

Of the British motorists who took part in the survey, 60 per cent admitted that they would prefer to drive their current car than a self-driving vehicle.  

To find out more about how Click Dealer can help your dealership make the rest of 2018 successful, get in touch via [email protected] or 01782 454354. Alternatively, you can send us a message through our contact page.