Used Car Dealers Need To Become More Creative In The Next Year!
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Used car retailers will need to be creative over the next year as prices fall and consumer priorities change!
According to Cox Automotive, which recently released their used car forecasts for the year, And their latest digital automotive insight update ‘AutoFocus’ states that there were a total of 7,096,932 used car transactions in the past year, which is more than three per cent up on 2022’s total.
Gains made in the first quarter of this year versus last year’s quarterly performance will be marginal, with an estimated 1,790,034 transactions, representing a marginal 0.9 per cent increase if achieved, Cox says it believes that replenished stock levels and renewed fleet utilisation will contribute to improved fortunes, but economic pressures will hamper the market from reaching its true potential.
While the sector is continuing its Covid recovery, with more than 46m vehicles having been ‘lost’ over the past three years because of production and supply issues. We must remember that the used vehicle market is still in a peculiar time. Although there are signs of weakness, this is all against the heights used vehicle values achieved over the past few unprecedented years. As such, retailers will once again need to be creative. For example, tactical registrations, discounting and investing more time and money into their social plans and strategies.
The market is continuing to see a slow, steady recovery but it all depends on the current cost-of-living crisis not worsening. The upside forecast, based on factors, that include a recovery in new vehicle production volumes and an upswing in the number of consumers, points to 7,510,412 used car transactions for the full year.
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If that number is achieved, then we would see a nine per cent increase for the year versus 2022 and a 1.8 per cent annual gain on the pre-pandemic market!
The EV market is likely to be affected this year since despite manufacturers shifting strategies to improve EV supply, many still consider ownership costs prohibitive. With EV sales dropping, you may want to consider using your social platforms to educate your potential customers about electric vehicles, what comes with owning one and their benefits.
With forecasts on the rise, are your socials ready for the upcoming influx?