THE number of enquiries received by dealers for new and used vehicles across the UK increased by 4.2% against the same month last year and 5.3% on last month.
The data, from iTrackLEADS, shows that the number of enquiries increased for the fifth consecutive month this year. The positive trends come at a time when consumers battle the rising cost of living and a mortgage crunch.
However, test drives fell by 8%, and sales dropped by 14%. Overall, vehicle handovers decreased by 40%.
Adrian Favill, director of iTrackLEADS, said: “The volume of enquiries is holding up despite the headwinds the economy is facing. It’s clear that dealers will have to work hard to convert those leads in a tougher economic climate and may face the challenges of delayed decision-making and the persistent shortages of used stock.”
The lead management company advises dealers that the chances of converting a potential lead into a successful sale increase by seven times when responses are received within just 30 minutes.
Favill added: “It is essential that sales teams have access to real-time data, which empowers them to respond, allocate, and measure sales. By prioritising timely responses and leveraging these innovative tools, dealerships can maximise their sales potential, exceed customer expectations, and stay ahead in today’s competitive market.”
- Stock levels dip to 54 units, as cars average just 35 days on forecourts
- Average price down 1% to £18,283, sixth MoM fall but still 10% up YoY
- EVs and hybrids share of listings drops to 10%, as dealers de-risk on back of recent price instability
Dealers continued to battle with limited supply, according to eBay Motors Group.
The latest Market View analysis of trends across Motors.co.uk found stock levels dipped 3% month-on-month from 55 to 54 units, a year-on-year drop of 6%. Franchised and independent dealers’ stocks dropped 7% month-on-month to 70 and 38 units respectively, while car supermarkets saw a welcome rise of 6% to 388 units.
Alternative fuel vehicle stocking dipped month-on-month with EVs dropping 4% and hybrids down 7%, nudging their overall market share from 11% to 10%, as dealers de-risked on the back of recent price instability.
Meanwhile, petrol vehicle increased by 7%, accounting for 52% of all used cars being sold on the platform, and diesel increased its share by 3%, taking a 38% stake.
The ongoing industry-wide pressure on supply saw days to sell fall for the third consecutive month with cars averaging just 35 days on dealer forecourts, as buyers remained active.
The fastest selling car on Motors.co.uk was the all-electric nearly new Cupra Born, selling in just nine days, with the top 10 featuring four Vauxhalls as buyers traded-in models to take advantage of the brand’s high profile 0% APR finance offer on new cars.
The average price of a used car in June dipped by 1% (£150) to £18,283 but was 10% (£1,671) up year-on-year. The average price of a car on the website has now gradually reduced every month since peaking at £18,903 in January. One of the main drivers has been the fall in value of models aged over 10 years, down 5% (£347), with younger cars seeing smaller drops after rising in value during 2022.
Pricing analysis by fuel type shows some welcome stability for EVs which increased by 1% to £30,341, against a year-on-year fall of 16% from £36,378.
“After the disruption of May’s bank holidays, June’s market saw some welcome stability for dealers with supply and demand fairly well balanced, as witnessed by cars selling faster than at any time since October 2021,” said Lucy Tugby, Marketing Director of eBay Motors Group.
“In light of the ongoing economic pressures and June’s interest rate rise, used car buyers are more focused than ever on their monthly budgets. We know from our conversations with dealers that de-risking purchases remains a key part of the buying process which is why PCPs remain popular. Buyers value the peace of mind of fixed monthly outgoings and avoiding nasty surprises with warranties.”
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