How Has The Automotive Industry Changed in 2017?

So far, 2017 has seen the automotive industry continue to evolve at a frightening pace with the shift to online selling of vehicles becoming ever more prevalent, buying vehicles on finance is now an even more popular method than ever and aftersales are becoming an even trickier business for smaller dealers.

So how will these changes affect dealers across the UK?

Digitisation

Digital car sales are rising as people are becoming more comfortable with making vehicle purchases online. Digitisation is having an important effect on the industry, raising questions about whether or not the role of physical car retailers will remain necessary if they do not begin to allow some form of e-commerce within their businesses.

Undoubtedly, changes in the trade will arise, but it is difficult to ascertain exactly how the automotive industry will look in the future. However, it is certain that online selling is definitely going to play a big role, there are even platforms on the horizon to help with processes like part-exchanging, finance and warranty. This means that dealers must look to implement these options via their own websites in order to keep up with their competition.

Automotive Finance

Financing a car is becoming an increasingly popular option amongst customers and cash buyers are now a rarity.

A significant instigator of car sales growth are personal contract purchases (PCPs). A large number of motors are now bought on PCPs. When a contract finishes, the primary option for customers is to find a new car, and so the sale cycle perpetuates.

Aftersales

It is increasingly difficult for small, independent dealers to be able to maintain contemporary vehicles as they are becoming extremely complex, which requires a significant amount of continuous investment in workshop equipment and training.

This is also problematic for larger groups when it comes to the recruitment and retention of technicians. Part of the issue is that the job has changed quite a bit. Where it used to require mainly engineering skills, IT skills have now become more relevant.

The automotive industry in general is currently having trouble finding technicians, as many IT savvy people, particularly from the younger generation, do not consider it as a career. It is therefore important to ensure the opportunity is adequately promoted where possible.

For more information on how Click Dealer can help your dealership shift to selling vehicles, finance and warranties online, as well as dealing with part-exchanges in the sales process, get in touch today by emailing marketing@clickdealer.co.uk, calling us on 01782 904 715 or messaging us via our contact page today!