Dealers go online to market used cars

Thursday, 09 July 2009

Dealers' used car marketing spend is increasingly shifting online and away from traditional methods of used marketing.

A survey of 200 car dealers carried out by Manheim found the top three means of markeing used cars are now dealers' own websites; carmakers' online marketing; and third party online marketing.

More than half (53 per cent) of dealers have seen an increase in new car sales activity in the first half of 2009 compared with the same period last year.

The survey found 72 per cent believed the introduction of the scrappage scheme had improved new car sales since the scheme's launch in mid-May.

Positive effect

Almost half (47 per cent) believed the scheme will continue to have a positive effect on new car sales in 2009.

The current buoyant used car market is reflected in the survey with 75 per cent of dealers experiencing improved used car sales compared with 2008.

This is despite the fact that 77 per cent of dealers have either frozen or reduced their used car marketing spend this year compared with 2008.

Dealer spend has shifted towards online used car media and away from traditional methods of used car marketing.

Dealer websites

The top three means of marketing are dealers' own websites; carmakers' online marketing; and third party online marketing.

The majority of dealers believe that the scrappage scheme will have no effect at all on used car sales for the remainder of the year.

Eight-in-10 (84 per cent) dealers are now stocking the same or less used cars than they were 12 months ago and half of all dealers feel that the consumer credit restrictions have had a negative effect on both new and used car sales.

The market's profile is changing with demand growing for small hatchbacks, superminis and medium family cars but slowing for big 4x4s and executive models.

Greater reliance

Dealers are also becoming more reliant on aftersales in the downturn, according to the survey, with 56 per cent reporting their dependency on aftersales income has increased this year over 2008.

Manheim Retail Services managing director John Simpson said: "Half way through an extraordinary year for the motor industry, we need to ensure that we understand fully the pressures faced by dealers.

"We need to be able to adapt and provide them with essential services to support them through these challenging times," he added.