Second-hand EVs Sweep SUVs From Top Spot In Used Car Demand

Auto Trader has given a dramatic insight into how priorities are shifting among used car buyers with a new report showing that the all-electric Renault ZOE is the fastest-selling second-hand model of 2019.

The battery-powered EV displaced the previously unbeatable SUVs and Auto Trader went so far as to describe the breakthrough as marking `the end of the reign of SUVs’.

The ZOE topped its fastest-selling league for two consecutive months and over the course of the year, the 2015 model took an average of just 26 days to sell, dropping to just 21 so far this month. Underlining the market mood, the 2017 version needed just one more day and a 2016 car another one after that but still placing it fourth overall.

Its figures are in stark contrast to this time a year ago when the Vauxhall Mokka topped the chart and the Kia Sportage in 2016 and again in 2017. In fact, SUVs accounted for just 20% of the new list against 80% 12 months ago.

Karolina Edwards-Smajda, Auto Trader’s Director of Commercial Products, said:

“Tracking circa 1.9 million data points, the (Fastest-Selling) Index provides an accurate barometer of consumer demand and growing trends in the market.

Move Towards More Sustainable Forms Of Transportation

“Over the last few years, we’ve seen some important milestones for used EVs. In January 2017 a BMW i3 marked the first time one had made it onto the national top 10 and in July last year, a ZOE was the first to actually top the list.

“With three taking the number one spot in 2019 and a ZOE crowned the year’s overall fastest selling is hugely significant and a clear sign of things to come as we move towards more sustainable forms of transportation.”

However, despite its acceleration off the forecourts of used car dealers, the ZOE is beaten in the most-searched-for EVs with those honours going to second-hand VW e-Golfs, the I3 and Nissan LEAF.

She added:

“This month’s data indicates that, despite widely documented strong new sales, there is a slowing in demand for used SUVs with all but one SUV pushed off the list, replaced by economical petrol hatches. Whether this is a result of consumers opting to make a saving with a cheaper vehicle before Christmas or is the start of a slow-down in SUV demand remains to be seen.”

Last month its Retail Price Index showed the rate of like-for-like price growth for EVs in October stood at 22%.

For more information on Click Dealer’s services, contact The Clickers on 01782 478 220. You can also reach us via [email protected] or through our contact page.

 

Focus On Subprime Finance In 2020 Say Dealers

Finance Options
Most dealers expect there will be a resurgence in subprime finance next year for used car purchases as lenders rein back on how much – and to whom – they are prepared to advance.

Startline Motor Finance says its own surveys show that a clear majority of around two-thirds believe that near-prime, or subprime, finance will become more important to their businesses if there is an economic slowdown in 2020. More than half also say they expect prime lenders to reject an increasing number of applications next year, continuing a trend they have seen during the last 12 months.

Paul Burgess, CEO at Startline Motor Finance, said:

“I recently read a view of 2020 that said, even if it isn’t technically a recession, it’ll feel like one. There is no question, it is going to be economically challenging.

“To some extent, the used car market is a countercyclical business and tends to do quite well in these conditions but it can only do so with the support of motor finance companies. This is what will make next year so interesting in our sector.”

  Reducing their risk appetites

“Our research shows that dealers already perceive prime lenders as reducing their risk appetites and that this will continue into 2020. In these circumstances, there is a good chance that near-prime lending will come into its own as an attractive alternative.”

The research carried out for Startline showed that 30% of dealers already have a near-prime option on their lending panel and 81% overall see near-prime as important or somewhat important to their business. Furthermore, 89% of dealers say it is important for near-prime lenders to have a range of products rather than just HP.

Paul added

“It is interesting to see the speed with which near-prime lending has established itself in the UK used car market and the value that dealers already place upon it. Given market conditions, it is reasonable to expect penetration to increase next year.”

For more information on Click Dealer’s services, contact The Clickers on 01782 478 220. You can also reach us via [email protected] or through our contact page.

SEO Should Be Given More Attention Than Traditional Advertising Methods

SEO
Car buyers come in more varieties than the cars you stock. Some are well informed and know exactly what make and model of car they want, others just want the best deal possible, some will only buy from a local dealer, and others might be looking for a dealership that provides a specific service. It doesn’t matter what it is they’re looking for though, because they all rely on the internet to find it. This is where you can get ahead of the competition and conquer this new digital landscape with SEO.

Google is used on a daily basis for online shopping, research, finding images and videos and all kinds of other queries. When a customer is looking for a car, they might search ‘Used Ford Fiesta Stoke-on-Trent’. Google orders the search results for this search based on your websites SEO score and relevance to the keywords being searched.

This is why SEO is so important for dealers. The competition is fierce, and you want to make sure your website is optimised for search engines like Google because a number of factors such as the content, links, and images can make a big difference as to where you appear in the search results.

The majority of consumers won’t go past the first page on Google, so your aim should be to display on the first page. The higher you are, the more website traffic you’re likely to have, which will improve your enquiry levels.

The Key To Success

SEO can help drive customers to your website who are in a ready to buy and informed mindset. Don’t worry about trying to rank high for ‘Car dealer UK’ for example, what you want to rank high for is targeted searches such as “2009 red Vauxhall Astra for sale”. If you appear at the top of a search page after someone searches that, your chances are really high they’ll visit your site and enquire about the car. Those keywords will get fewer searches but have much higher conversion rates.

It’s also important to remember that when you rank higher, you begin to build a reputation as a popular and well-known dealer.  You might perform very well locally if your dealership is based in a prominent location, but if you’re tucked away on an industrial site or want to get traffic from outside your area, SEO is a crucial form of digital marketing. SEO improves your positioning in the organic search results for keywords and phrases that are relevant to your business, allowing potential customers to find you more easily. If this is something you want to look at, it may be worth exploring Pay Per Click (PPC) too, which is the process of bidding on keywords and driving traffic to your website through ads on Google. PPC looks at the paid ads, whereas SEO is about your organic reach.

It’s A Process, Not A Destination

Already at the top? Awesome job! But this isn’t the time to rest on your laurels. Your SEO score can fall if your website has a high bounce rate, expired or bad links, copied or outdated content and a lack of relevant keywords. You need to be updating your website on a regular basis and making sure everything is working okay, while also creating unique content.

Our tips:

  • Create quality unique content
  • Optimize all elements of your content to appear for more searches
  • Track and monitor your website traffic regularly
  • Schedule in time to look at adding new content like blogs which will improve your SEO score

To find out more about SEO contact us on 01782 478220, email [email protected] or via our contact page.

Cazoo Model Challenges Traditional Dealers

Cars
Used car retailers working the traditional model of having a forecourt, website and using digital sales platforms face a new challenge from the man behind the Zoopla property portal with the launch of a fully online and end-to-end service which he says will `Amazon’ the trade by transforming customer service and expectations in the sector.

Cazoo allows buyers to choose their car online, the price is fixed so there is no haggling and the customer gets a part-ex value and can arrange finance through HP or a PCP if needed. All the vehicles have a 150-point condition check, come with full-service history and a 90-day free warranty. Similar services are already provided by other sellers but Cazoo also delivers it to their address within 72 hours and gives a seven day, no questions asked money-back guarantee if the customer does not like the car.

Alex Chesterman, the online entrepreneur, is being backed by more than £100 million of funding making his latest venture one of the best-financed operations yet in the business. Initially, it has a stock of around 1,700 cars which it owns and prepares at a Midlands site.

Process of Buying a Used Car Is Outdated and Not Fit For Purpose

Describing it as `Amazon-ing’ the eight million-a-year used car market, he said:

“The process of buying a used car is outdated and not fit for purpose for today’s consumer. Cazoo is reimagining used car buying to make it simple and convenient whilst adding transparency and quality to an industry which suffers from a lack of consumer trust. We take away the need to travel, to haggle, to spend countless hours at a dealership and to risk any buyer’s remorse. With Cazoo, you can purchase or finance a used car entirely online, have it delivered to your door in as little as 72 hours and have 7 days to make sure it fits your lifestyle. And if you don’t love your Cazoo car, we’ll come and collect it for free.

“Cazoo is set to transform how eight million used cars are bought each year by putting the entire process online and offering home delivery, much like buying any other product today. It has launched with over 1,500 cars in stock, ranging from family SUVs to sporty hatches, including a wide range of electric vehicles. Cazoo owns all its cars and thoroughly reconditions each one to the highest standard at its 55-acre facility in the Midlands before offering them for sale.

“With no forecourts or salespeople, Cazoo passes the savings on to its customers, effectively ‘Amazon-ing’ the used car market.”

For more information on Click Dealer’s services, contact The Clickers on 01782 478 220. You can also reach us via [email protected] or through our contact page.

Racy Advertising Could Land Dealers In Trouble Warns Watchdog

Racy Advertising
Dealers advertising used cars and especially higher powered ones should steer clear of pushing its performance in a way which could encourage reckless driving by the next owner.

Words or images which promote what the Committee of Advertising Practice (CAP) describes as `unsafe or irresponsible driving’ will fall foul of Section 19 of its Code and dealers using them could face prosecution and a fine from the Advertising Standards Authority.

The basic rule when writing an advert or using still images or video is to think of road safety and how the ad is viewed in that context. Words highlighting the thrill of flooring the accelerator on a 500 bhp supercar and seeing how fast it can get to a triple-figure speed or footage of it smoking the rear tyres or sliding through a bend may be acceptable on a TV motoring programme but are probably not when appearing on a dealer’s website!

For example, Fiat and MINI adverts which made the car’s sportiness the central message with phrases such as `it gives one hell of a ride’ and being shown against a blurred background to suggest speed have been deemed to go beyond what is acceptable.

Similarly, dealers need to exercise caution when describing a car’s hands-free technology. Many cars have it allowing drivers to make phone calls without taking their eyes off the road or hands off the wheel and it is usually regarded as being a good thing from a safety perspective, but one Jaguar ad which was seen to promote hands-free work-related tasks was ruled unacceptable.

Again the basic standpoint of CAP is anything which, if copied on the road by the owner, could break the Highway Code could be called in and examined by it.

Road Safety Is The Key To It

One way for dealers to get around this is to go to the extreme and exaggerate to a point which is obviously unrealistic and could never be transferred to real life. This allows them to get across the message they want about the performance or level of driver-aid sophistication without getting into trouble.

CAP says

‘Using a scenario that is very clearly fantastical, to the point that viewers are unlikely to see it as an actual demonstration of the vehicle’s acceleration, speed or handling, is more likely to be considered acceptable.’

The standards body says

‘Ads that feature motoring are subject to Section 19 of the CAP Code, and road safety is key to these rules. Rule 19.2 states that advertising should not “condone or encourage unsafe or irresponsible driving” or depict behaviour that, if emulated, could result in a breach of the legal requirements in the Highway Code. Marketers must therefore ensure that their ads are responsible when it comes to road safety, which includes demonstrating sensible driving.’

For more information on Click Dealer’s services, contact The Clickers on 01782 478 220. You can also reach us via [email protected] or through our contact page.

Values Stabilise After ‘Rollercoaster’ Year

Cars
Second hand car values stabilised this month after price corrections earlier in the year, say trade analysts.

This month has seen far less activity and fluctuation, even allowing for the usual early winter slowdown, than in previous years. Cap HPI says that vehicle values overall fell just 0.6% at the three-year/60,000 mile point against a five-year average of 2.3%.

There is some variation among the sectors within that headline figure though. For example, pre-registrations in September saw a bigger drop for one year/10,000 mile cars of 1.1% and petrol-engined cars faced similar problems, partly because of pre-reg activity and partly because diesel is still the favourite fuel in the second-hand sector.

Climbing up though were city cars and superminis such as the VW Up or Skoda Citigo which are ideal second or third cars and saw an average increase of 1.2%. Oversupply new in September saw one-year-old superminis drop fractionally but the sector generally performed well with values remaining static at the three-year old mark.

There will be little surprise in seeing SUV values remain firm and a drop of 0.6% this month is far less than is usually seen at this time of the year. Cap says SUVs now take almost one in four sales in the sector.

However, while values are calm for now there is the great unknown of the outcome of the General Election and Brexit to come.

Stability Will Reign For The Next Few Weeks At Least

Derren Martin, head of UK valuations, said:

“In addition to the current shortage of supply, the industry saw unusually heavy price drops earlier on in the year. The much talked about realignment of prices felt from the start of 2019, which accelerated from Easter onwards, seem to have had a positive effect on the market. The market drops in Live from April to July equalled almost 10%. Since then, over the last four months, there has been less than a cumulative 2% drop. The realignments seem to have stimulated the market positively.

“As we enter the final weeks of what has been a roller-coaster year for the used car market, it is likely that relative stability will reign – for the next few weeks at least!”

For more information on Click Dealer’s services, contact The Clickers on 01782 478 220. You can also reach us via [email protected] or through our contact page.

Dealers See Sales Chance With Cheaper Used EVs For Urban Buyers

EV
Second-hand EVs are splitting into a ‘two-speed market’ as buyers increasingly looking for cheaper ones are pushing up their values while the more expensive premium models struggle.

Just days after the SMMT published a report showing a 13% sales growth in Q3 for used hybrids and pure EVs, Cap HPI has now said that dealers can generate good business by offering the smaller, cheaper EVs. It cites the examples of the Citroen C-Zero and Peugeot iON which have both seen impressive RV rises. Two years ago a 2018/10,000 mile C-Zero would have retailed at around £6,000 whereas today a similar example is into five figures.

It says the iON and Renault ZOE are enjoying similar value buoyancy as more urban drivers want them for short commutes and school run type journeys but there is a relative shortage of supply.
Analysts say EVs with a ceiling of around £17,000 at 12 month/10,000 miles are the ones generating the best business and biggest profits for retailers but warn that above that price point demand drops off dramatically.

Chris Plumb, Cap HPI’s senior valuations editor, said that high-end cars such as Jaguar I-Pace (18-), Audi E-Tron (18-) and Tesla Model X (16-19) have all seen values reduce over the past few months.

“Today a BMW i8 (13-) coupe is worth around £20,000 less at one year old and 10,000m than it was two years ago. Equally the Jaguar I-Pace (18-) has seen values drop around £10,000 over the last 12 months. It’s clear that there is a growing market for a used BEV at a particular price point perhaps for use as a second car for city commutes. We expect to see demand continue to increase as clean air zones are rolled out across the country and the range of product widens.

“The premium models represent a different proposition, often with longer ranges and more features, the high purchase price at new is yet to translate in the used sector.”

Plumb said:

“We are in a transformational period for the alternative fuelled vehicle with the rapid growth of new car volumes and greater choice in the used sector.

Expect To See Demand Continue To Increase

“The roll-out of charging infrastructure and increased battery ranges will only accelerate the adoption of these vehicles. Over time, used values have stabilised and now perform against the same market pressures as their petrol counterparts.

“As supply and demand shift, we see pressure on some models and, in some cases, values appreciate on others. We expect dozens of new models in 2020 and it will only bring more choice to the used buyer.”

For more information on Click Dealer’s services, contact The Clickers on 01782 478 220. You can also reach us via [email protected] or through our contact page.

Cars Sales Jobs Pay Less And Is Heading Down Says Recruiter

5 Ways to Avoid a Stale Sales Floor
Car sales executives are being paid less now than a year ago and jobs are harder to find with half the number of vacancies advertised compared to 12 months ago.

The data from national jobs board, Adzuna, lays bare the state of the employment market for people in the trade looking to change their position but faced with a lack of opportunities and openings. It says that the average car sales executive salary is now below £29,500 which is around 13% less than the national average advertised salary of £33,915, and a year-on-year drop of more than one percent which is again worse than the UK average for all jobs.

Perhaps even more worrying is the colossal drop in the number of vacancies being advertised. Adzuna says that it has around 1,000 openings currently advertised which is less than half the number it had a year ago when it showed 2,150 vacancies.

Car Sales Executive Salary 13% Less Than National Average

There are big regional variations among the highest paying areas too. For example, in Cambridgeshire, the average salary a sales exec can expect is more than £35,000, a YOY increase of around seven per cent and where there are nearly 70 jobs currently available. In Norfolk, Adzuna says the average pay has dropped 10% over the past 12 months to around £30,100 and it has fewer than 30 openings to fill.

Backing up the gloomy picture, in the latest quarterly report on the jobs market from recruitment specialist, Reed, its Q3 index showed a fall in job vacancies which together with a slowing in Q2 meant it has seen two consecutive quarters of drop-off for the first time since 2010. Sales jobs were among the biggest slowdowns.

James Reed, Chairman of REED, said the economy and jobs market needs greater clarity on the political front before there is any real hope of recovery, adding:

“The latest quarterly job vacancy data from reed.co.uk appears to confirm my fears of a UK recession. There has been an acceleration in the downturn over the past two quarters and the impact on employment figures and the wider economy could be severe unless urgent action is taken.”

For more information on Click Dealer’s services, contact The Clickers on 01782 478 220. You can also reach us via [email protected] or through our contact page.

Van Retailers Face Mixed Messages From The Market

Used van retailers are facing difficult trading conditions as their customers hold back from buying decisions and the market gives out mixed messages, subdued in some areas but more buoyant in others.

According to the latest report from Glass’s, wholesale auction activity in September slowed while businesses wait for the political and economic situation to become clearer but there have been some bright spots.

It says the average age of second-hand van stock of all categories was a fraction up, at almost 66 months, but average mileage was slightly down, at 72,600. The average sale price was up by around £200 from August but down by more than £250 year-on-year. Overall September sales volumes fell 9% on August and are 15% down from last September. That said, average first-time conversion rates rose 2% to almost 80%.

A Glass’s spokesman said:

“These changes highlight the volatility in the market and the general caution of the buyer.”

As usual, the bulk of sales were evenly split between the small and medium van sectors, with 34% of overall trade each. Sales of small vans dropped 11% in the month and the Berlingo, Combo, Caddy and Transit Connect took the lions’ share of them with strong performances from the Peugeot Partner, Renault Kangoo and Ford Transit Connect where average prices all rose from August.

One significant event was the almost 12% jump in price for the electric Nissan eNV200, underlining the growth in demand for battery-powered LCVs and echoing similar recent rises for EVs in the used car sector.

Volatility In The Market

Medium-sized used LCVs had a better September with the VW Transporter, Transit Custom, Trafic, Vivaro and Dispatch being the volume sellers but only Vauxhall and Volkswagen saw average price increases.

In contrast, there was markedly less demand for Large Panel vans where volume dropped by nearly 6% but sale prices went up by a similar amount. The Ford Transit and VW Sprinter made up nearly 60% of all sales in this sector, with average sale prices increasing by £450 on August, but no single range saw an average price increase.

The used 4×4 Pickup market is another hard one to read with auction buys falling for the third month running although the quality was better. Average mileage and mileage both came down with average sale prices going up to just short of £10,000.

Mitsubishi’s L200 and the Nissan Navara sales dropped by 12% but still accounted for more than half of total volume. The VW Amarok continues to sell when condition and miles are right and with the all-new model grabbing the headlines, there is a healthy demand for higher-spec Land Rover Defenders, with the best XS and special edition models continuing to sell for exceptional prices.

For more information on Click Dealer’s services, contact The Clickers on 01782 478 220. You can also reach us via [email protected] or through our contact page.

Meet The Clickers – Harriet Moxham

Hello and welcome to the latest episode of Meet the Clickers! For episode 89, I am joined by one of Click Dealer’s Business Administration Apprentices, Harriet Moxham! Harriet took the time out of her busy schedule to catch up with me to discuss everything from her love of modifying cars to her “specialist treatment!” Here’s what she had to say…

Hi Harriet, great to catch up with you! Could you please start off by telling us a bit about how you began your Clicker tenure and what your role entails day to day?

“Hi Ben, before I started at Click, I used to work as an accountant. I had finished my NVQ and couldn’t go any further with the qualification, that’s when I decided to start looking for another job. I sent over my CV and a couple of weeks later I had an interview with Kate and Danni; about a week later, I started at Click!

“I am currently in the process of migrating our dealers from the Heart server to UK Fast. So, long story short, I make sure that all of our dealer’s emails work properly!”

Great stuff, what does the perfect weekend look like for you?

“The perfect weekend for me would be a nice meal, preferably Miller & Carter, a few drinks and then head out until the sun comes up.”

A few of your teammates in the Web Onboarding Team have asked me to get a bit of an insight into what your, and I quote, “obsession with standard Ford cars” is all about. Care to tell us a bit more?

“Well, they obviously don’t know me well enough! My obsession isn’t with standard cars, I like to modify cars, a bit like my fart box that’s parked outside!”

You could bring back ‘Pimp My Ride!’ How much has your life changed over the past 12 months?

“CHEESE!

“I would say that my life has changed a fair bit over the past 12 months. For one, I passed my driving test which was something I have wanted to do for as long as I can remember! (This is the cheesy bit and I don’t really do cheese) I met Jord 12 months ago and he has changed my life a hell of a lot.

“However, most importantly, I met Helen (yeah, sorry Nat!) I honestly don’t know what I would do without her support and advice when I have what I think is a crisis.”

I can’t argue with that, Helen is a thoroughly amazing person. I’ve been told by Moushumi that you have a certain daily snack and drink ritual. What is she talking about?

“After my dinner at about 3 pm, I like to grab myself a nice glass of cold milk and tuck into a chocolate bar. I drink milk with absolutely everything, Chinese, Sunday dinner and even a pack of roast chicken crisps!”

I’m not quite sure what to make of that! Milk with a Chinese?! What movie title best describes your life?

“It must be Legally Blonde. Although I am not blonde anymore, I was born a blonde and will forever remain one.”

What are most other people obsessed with, that you just don’t see the point of?

“Football! I hate football.”

I’m sure that there are a few Clickers that would agree with you, but I am definitely not one! Another question courtesy of the Web Onboarding Team. They jokingly said that you receive what they’re calling “specialist treatment,” but wouldn’t tell me anything more. Care to fill us in?

“Well, they think that my surname gets me “specialist treatment,” but they are wrong! I know that they have only said this to grind my gears because they know how much they can wind me up about it!”

What are you most likely to become famous for?

“If I became famous, I reckon it’d be because I would be the first person to kill somebody with an email. However, this wouldn’t make me famous, it would make me infamous!”

Tell us about your High School Musical re-enactment…

“Sadie, I hate you!

“So, basically, when we all went away for Danni’s birthday, I had one too many glasses of wine and whacked a bit of High School Musical on. The song was ‘Gotta Go My Own Way’ and I stood in the middle of the living room giving it my absolute best; I’m not going to tell you who has the evidence!”

Hahaha, I’ve seen the video and you’re definitely better off in your current profession! Finally, what do you love the most about working at Click?

“The thing that I love the most about working at Click is the Clickers. I love how we all work together as one big team, we support each other and most importantly we love each other!”

Great answer, Harriet and although it might be starting to sound a little cliché by now, the Clickers are such a close team.

Unfortunately, that spells the end of episode 89 of Meet the Clickers! A massive thanks to Harriet for taking the time to chat with me. 

Until next time.