Used service switch
May 5th, 2010 by Richard Aucock
RISING prices of new cars means car dealers must be switched on to the needs of used car buyers.
Network Automotive says new prices have risen to ‘historically high levels’, despite consumer confidence remaining low.
Factor in the risk of unemployment plus many people not getting a salary increase, and you’ve growing numbers of buyers who cannot afford a new car.
‘Someone who previously bought new might now be buying a year old car,’ said MD Colin Bruder. But this doesn’t mean they’re any less demanding. ‘What dealers need to recognise is that these customers do not have radically changed expectations.
‘The customer buying a six month old, 5000-mile ex-demonstrator still wants that new car smell and a bunch of flowers on the back seat. People paying the same amount for less need to be made to feel special.’
This extends to preparation, PDIs and the presentation of all relevant documentation, too.
The ending of scrappage will throw the importance of this into sharper focus, reckons Bruder. ‘There is now a chance that the full implications of the £12,000 mainstream entry level hatchback will hit dealers – and that a used car is the only option for someone who would have been a scrappage customer.’
Rises in used car prices will help pay for it, mind… they’re on the up, which has the added effect of meaning the 3 year old/40,000 mile car could now be a 5years/60,000 miles’ buyer.
Their expectations won’t have changed either, though, despite the greater age of the car!
Is this a situation you are starting to come across in your dealership?
Tags: network automotive, prices, used