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New research conducted by Manheim Retail Services during December 2008 has revealed the true impact of the recession on dealers’ used car sales. Questioning a broad cross-section of mixed franchise retail dealers who use the services of Manheim subsidiary Portfolio, the survey found that more than two thirds of all dealers had experienced downturn in used car activity during 2008. The vast majority of these said that levels were down by over 10%. On the positive side, nearly a quarter confirmed that sales had remained at the same level this year, with a further 12% saying they had seen used car sales actually rise.

SURVEY DETAILS:

Retail Used Car Sales:

  • 54% of dealers have experienced a reduction of more than 10% in retail used car sales
  • 5% of dealers have experienced a reduction of between 5% and 10% in retail used car sales
  • 8% of dealers have experienced a reduction of up to 5% in retail used car sales
  • 21% of dealers have experienced no change in retail used car sales
  • 7% of dealers have experienced an increase of between 5% and 10% in retail used car sales
  • 5% of dealers have experienced an increase of more than 10% in retail used car sales

Retail Used Car Stock:

  • 24% of dealers have reduced their used car stock by more than 10%
  • 30% of dealers have reduced their used car stock by up to 10%
  • 26% of dealers have kept their used car stock at the same level
  • 16 % of dealers have increased their used car stock by up to 10%
  • 4% of dealers have increased their used car stock by more than 10%

Retail Used Car Prices:

  • 76% of dealers have reduced their used car retail prices
  • 16% of dealers have not changed their used car retail prices
  • 8% of dealers have increased their used car retail prices

Retail Used Car Stock Profile:

  • 25% of dealers have not changed the profile of their used car stock
  • 8% of dealers have more larger/executive cars
  • 42% of dealers have fewer larger/executive cars
  • 8% of dealers have more 4x4s
  • 37% of dealers have fewer 4x4s
  • 29% of dealers have more medium sized cars
  • 12% of dealers have fewer medium sized cars
  • 63% of dealers have more smaller sized cars
  • 4% of dealers have fewer smaller sized cars

Used Car Marketing Spend:

  • 4% of dealers have increased their used car marketing spend by more than 10%
  • 29% of dealers have increased their used car marketing spend by more than 5%
  • 4% of dealers have increased their used car marketing spend by between 1% and 5%
  • 25% of dealers have not increased their used car marketing spend
  • 25% of dealers have reduced their used car marketing spend by between 5% and 10%
  • 13% of dealers have reduced their used car marketing spend by more than 10%

Media – Newspapers:

  • 63% of dealers will use less newspaper advertising
  • 4% of dealers will use more newspaper adverting
  • 20% of dealers will use the same amount of newspaper advertising
  • 13% of dealers do not use newspaper advertising

Media – local radio/TV:

  • 26% of dealers will use less local radio/TV advertising
  • 12% of dealers will use more local radio/TV advertising
  • 25% of dealers will use the same amount of local radio/TV advertising
  • 37% of dealers do not use local radio/TV advertising

Media – Online:

  • 8% of dealers will use less online advertising
  • 67% of dealers will use more online advertising
  • 25% of dealers will sue the same amount of online advertising

Media – Direct Marketing:

  • 12% of dealers will use less direct marketing
  • 46% of dealers will use more direct marketing
  • 33% of dealers will use the same amount of direct marketing
  • 9% of dealers do not use direct marketing