A survey from Experian, the global information services company, has revealed that more than half of automotive dealers have positive expectations for their used car sales and aftersales activities over the next year.
62% of dealerships predicted that their used car sales activities would grow in 2012, despite 22% stating that a shortage of good quality used cars was the biggest challenge facing their business this year. Just 38% of dealers expected new car sales volumes to increase.
23% of dealers stated that selling vehicles profitably was the key challenge facing their business, while a further 17% stated that identifying and reaching suitable customers was their biggest problem.
55% of dealers believed that they would grow their aftersales activity during 2012. They also revealed that customer loyalty was far greater amongst those that had previously purchased new cars from them. 70% of new car customers returned to the dealership for servicing or repair, compared to just 14% of used car buyers.
Alistair Scullion, Managing Director for Experian’s Automotive business in the UK and Ireland, commented: “Our survey suggests that the sales environment for new cars continues to be a significant challenge and dealers are adapting their businesses accordingly.”
“Optimism around used car sales and aftersales activities is encouraging. It is clear that dealerships recognise that there are growth opportunities for those of them that can react quickly to changing market dynamics, while reaching customers with the right offer and fostering customer loyalty to keep them coming back to the dealership.”
For more information: www.experian.co.uk