With dealers preparing to reopen their doors from April, the car retailing sector is anticipating pent-up demand from buyers finally able to visit forecourts to view, touch and test drive used cars.
It’s been a long time coming, no wonder the current industry talk’s all about pent-up demand.
What’s the industry saying about pent-up demand?
eBay Motors Group reported an encouraging 27% year-on-year increase in dealer leads from visitors to Motors.co.uk over the course of February. 1
Also in February, AutoTrader tracked its eleventh consecutive monthly rise in average list prices, prompting it to say it was optimistic of “very strong retail demand once forecourts are able to physically reopen”. 2
Derren Martin, cap hpi’s Head of Valuations, expects used car activity to increase now that a date has been set and the clock’s ticking. 3
“We’re predicting some pent-up demand. Sales rates are generally around 65% of normal, so that’s 35% of consumers who have not bought; they are very likely to come back into the market from 12 April,” he said.
Buying stock online
The coming weeks are likely to see increased wholesale activity as dealers replenish stocks.
As a tech-led business that operates exclusively in the digital remarketing space, ADESA UK is working closely with retailers who have transitioned to online, and we continue to support them as they reap the benefits of buying defleeted stock Upstream.
For dealers this means:
With physical auctions sites remaining shut for the moment, digital remarketing remains the ONLY channel for dealers to source used cars.
Our mission is to continue to create Faster, Smarter and Easier ways for dealers to benefit from the shift to digital remarketing.
Contact us today to discover how we can deliver your used car stocking needs.
1 eBay Motors Group February 2021 Market View, 8 March 2021 https://www.ebaymotorsgroup.co.uk/news/market-view-february-2021/
2 Auto Trader Retail Price Index February 2021, 3 March 2020 https://plc.autotrader.co.uk/press-centre/news-hub/auto-trader-retail-price-index-february-2021/
3 Motor Trade Radio, 27 February 2021, https://motortraderadiocom.libsyn.com/motor-trade-radio-27th-february-2021-episode-10-season-7-plus-exclusive-interview-with-derren-martin-cap-hpi