Key Automotive Trends from 2017
- January 22, 2018
- Posted by: Kari Jones
- Category: Automotive Industry
On behalf of everyone at Click Dealer, we hope that 2017 has been a prosperous year for your dealership. Now it’s time to plan for 2018 and there are many important lessons to be learned from last year’s trends!
The Time for Used Car Dealers is Here!
In March 2017, the used car market set a new record with 728,525 vehicles sold, and according to data published by Cap HPI, there has been an increase in used car sales year on year since 2015. If this trend continues, 2018 could be a record year for the market.
High demand is good news for used car dealers, but at the same time, more retailers are likely to want in on the used car market which means that there will be more competition.
Your Analysis on 2017
According to Cap HPI’s regular dealer surveys, there has been a decrease in forecourt footfall, while a considerable number of dealers have noticed an improvement in online business. For car buyers, a high percentage of the purchase journey is now occurring online and there is a need for dealers to ensure that their website is optimised.
Compared to 2016, car dealers reported a decline in new car registrations and a rise in used car registrations, which again shows increased demand for pre-owned vehicles.
Impacts of the Petrol and Diesel Ban
The announcements of clean air zones and the 2040 petrol and diesel ban have had a definite impact on vehicle sales, with diesels taking a significantly harder hit.
Cap HPI’s research reveals that prices of petrol hybrid vehicles at three years and 60,000 miles have increased, whereas diesel and petrol vehicles are declining in value. From January to June 2017, diesel vehicles at 3 years and 60,000 miles depreciated by 6.4%, while petrol vehicles have depreciated by 4.8%.
In light of this information, dealers may want to tread carefully where petrol and particularly diesel vehicles are concerned.
The key to success for the year ahead is to adapt to consumer demand. The focus should clearly be on used car sales, but if larger volumes will be available to car buyers, dealers should be prepared for the pressure that this will impose on values.