It is currently one of the fastest-changing sectors in the motor trade arena, but how exactly has the world of remarketing changed, what are the catalysts, and what’s in store for the remainder of 2018?
Like most industries in the modern business environment, automotive has definitely not stood still, however detailed analysis of the facts and figures present a mixed picture.
In 2017, consumer confidence and debt fears are reported to have been the reason for a fall in Auto Trader share prices, for example. But looking a little closer, average revenues per forecourt had actually increased per month.
The Society of Motor Manufacturers and Traders also revealed that aside from a minor drop of 0.7% in sales, the used car market had remained strong. Similarly, in Q1 of 2018 the SMMT unveiled that more than 2 million used cars changed hands, resulting in a 4.8% decline yet still the third highest level on record.
New car sales cooled in 2017, but this may be expected following five consecutive years of explosive growth. However, even when acknowledging this slight dip, the first half of the year is still the second biggest performance period on record.
The upsurge in PCP deals has undoubtedly driven this upsurge in new car sales. Peoples’ attitudes towards owning a new car has changed significantly, thanks to the ability to drive their must-have vehicle for a straightforward, affordable monthly payment. This perhaps understandably resulted in a negative impact on used car demand and values. But then, a downturn in used cars slowly began to inflate the price of new vehicles, which appears to be bringing the market back full circle.
If there’s one thing an auction house must be in the face of such market fluctuation, it’s agile – even the best performing remarketers cannot afford to become complacent.
Dealers are demanding more, so the savviest auctions have faced the market’s challenges head on and diversified the spectrum of services that they offer as a result.
Efforts can’t end there of course – remarketers will have to do even more to maintain footfall, stock conversion levels and entice repeat attendance at their upcoming sales. Exclusive invitation-only pre-sale seminars, for example, are becoming the norm and acting as a way to boost collaboration within the used car supply chain.
It’s safe to say that significant opportunities for growth still exist in the post-production lifecycle, but perhaps more so for remarketers who think beyond the ‘norm’.
Written by Gareth Jones, G3 Remarketing – https://www.g3remarketing.co.uk/
