Drivers are in-market and ready to buy says Auto Trader

Auto Trader recorded a record month in January with 58 million cross-platform viewings which it says confirms its view that consumer confidence is growing in the market and more people are looking to change their vehicle.

The leading digital portal saw a 5% rise from its previous best set last March and as well as the number of visitors, it had almost 14 million downloads of its mobile app and there were 259 million full page advert views of its new and used stock.

Demand was up on Auto Trader year-on-year in January for vehicles of all fuel types too; diesel by 4%, petrol by 7%, AFVs by 72% and EVs by 110%. With demand increasing, prices are stabilising and although like-for-like prices – the difference in vehicles entering and leaving the market – were down 3%, the rate of decrease is slowing as they become more resilient. The average price of an advertised used car in January was £13,557 against £12,960 in the same period last year.
It says its own research matches that of others showing improved confidence to spend and Auto Trader’s surveys among car buyers showed that 59% feel more confident of being able to afford their next car than they did a year ago.

Ian Plummer, Commercial Director at Auto Trader, said:

“Following the general election in December and now that the light is starting to shine through the Brexit tunnel, it seems that the market is stabilising and hopefully will continue across Q1 and beyond. With increased consumer confidence too, retailers have a great opportunity to convert sales this quarter, particularly when audiences are so high on our marketplace.
Retailers are more confident too. Many of our retail partners have told us they’re feeling optimistic about 2020 and this is seen this through the volumes at auctions. Auction groups announced that in January weekly and day sales records were broken, this positive demand in the wholesale sector further confirms that retailers are experiencing higher levels of retail activity.”

Retailers should be in a happy position

Ian says that retailers should be in a happy position now with more impetus on EVs and car tax changes due in April perhaps pushing people into the market.

“Now’s a particularly good time for retailers; demand for electric vehicles skyrocketed after the government’s announcement to ban diesel and petrol cars in 2035, and retailers can use this time to capitalise on the car tax changes which come into effect on 6th April. Consumers could be left paying significantly more for tax on new cars – as much as £960 more for some models – so they’ll have the impetus to buy new cars this quarter.”

Earlier this week the SMMT revealed that the full-year used car market ended at 7.9 million units in 2019.

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