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Showroom management system provider, Dealerweb, has noted a 7.8% drop in new vehicle enquiries in Q2, while a 11.3% rise for used vehicles was recorded in the same period. The data mirrors the much discssed shift in demand from new to used vehicles during 2017.

Dealerweb gathered data from UK dealers using its cloud-based showroom management system, across volume- and prestige-brand franchised dealerships. For the first six months of 2017 new vehicle enquiry volumes grew just 0.2%, while dealers have received 20.4% more enquiries for used vehicles compared to the same period last year.The total number of enquiries recorded by Dealerweb for new and used vehicles in H1 2017 grew by 9.3%, year-on-year. There has been a surge in online enquiries with year-on-year growth during Q1 and Q2 of 21.4% and 25.1% respectively. Walk-in enquiries remained static, rising just 1.3% year-on-year during Q1, and falling 3.1% during Q2.

Martin Hill, Managing Director at Dealerweb, commented, “The new VED tax system, an inconclusive general election result and ongoing uncertainty over the financial implications of Brexit are contributing to a reduction in consumer confidence,”

Hill says the indecisive election result is now playing a roll in consumer confidence: “Negotiations over Britain’s exit from the EU mean the country’s financial outlook is unclear, and changes to the VED system have encouraged many buyers to hold on to their existing vehicles, or buy a nearly-new car registered before 1 April, which may be cheaper to tax. The lack of clarity in the election result is echoed in the indecision and growing uncertainty among vehicle buyers in the UK.

Hill concluded, “Looking ahead, dealers must ensure that they maximise every sales opportunity, particularly for new vehicles. If enquiry volumes start to fall further, dealers must re-assess how they respond to potential sales leads, particularly as customers are increasingly likely to start the vehicle-buying process online.”

 

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