Dealer beware: thanks to Internet, your customers know the market!
Over 50 per cent of used car buyers research purchase online
EurotaxGlass’s reports that the Internet has revolutionised car buying and is providing consumers with the ultimate research tool prior to purchasing a used car.
According to data, over 50 per cent of car buyers now use the internet to research a used car purchase; up by a staggering 30 per cent since 2003.
Most dealers now broadcast their stock on the web: over 75 per cent of all used cars offered by dealers are being advertised on the web, utilising a number of popular broadcast mediums such as Auto Trader, Exchange&Mart, Yahoo! and Fish4Cars. Websites such as these offer powerful search facilities that enable users to locate numerous vehicles in a specific location at a specific price and with a particular specification. These powerful tools provide a rich source of intelligence to consumers, the like of which they have never had before.
The core issue for most car buyers is price, so it is fundamental that dealers offer their stock at prices that are in line with the competition. Failure to do so will result in a significant loss of business: no buyer will pay more than what they perceive to be the fair market price.
In addition, research reveals that the price disparity on specific models advertised on the Internet can be extremely high, with asking prices for similar cars sometimes varying by thousands of pounds. The result is that dealers have never been more exposed, particularly in the critical area of price. Customers are now fully armed with information sourced from rival dealers.
These observations tell us several important things. In a market that is obsessed with securing a good price, both dealers and customers will benefit from through market research. If dealers remain well informed as to their local market, they can be sure of selling vehicles rapidly and more profitably, while buyers can make significant savings if they are prepared to spend a little time researching their purchase.
EurotaxGlass’s Automotive Business Intelligence is an Europe’s leading supplier of automotive business intelligence, which offers products and solutions that are essential at every stage of the vehicle lifecycle – from valuation, technical and fleet management data, through to estimating, bodyshop and dealer management systems and web-based services. Recent developments even include valuation data for consumers.