The in-between car is one that fills a gap between trading-in their current vehicle and picking up the car they really want to own next that, because of shortages, might not be available until well into next year.
According to Saxon Odgers, head of dealer marketplace at Autotrader, dealers need to now take the in-between car into account when selecting their current stock because buyers of in-between cars have different imperatives.
He said that Autotrader was encouraging dealerships to diversify and implement a used car strategy to meet the trend towards an “in between car” as people wait for new car availability to improve, likely sometime towards the end of 2023, and how it represents an opportunity for dealers to attract new conquest customers.
“We are anticipating some new buying trends that dealers will need to respond to,” he said.
Saxon Odgers
He said the global reduction in new car production means “customers will have to continue going to new lengths to buy their next vehicle. In turn, dealerships will continue to be faced with the challenge of finding the stock and the right car to meet this new customer’s needs”.
“Impatience and a fear of missing out due to highly-publicised unavailability mean customers are rushing to find out if a vehicle is available to them.
“We know that our seller partners have seen a shortened time from consideration to purchase, with customers now being less discerning when it comes to individual vehicles and where they shop.
“They are far more willing to compromise. This scenario brings a double-edged sword, as buyers can quickly move on if they aren’t made aware that dealers possess stock that may be close to what they’re after.
“Buyers may not be buying their first choice when it comes to brand and model. Showcasing a different colour option, a vehicle with a higher or lower equipment level or even an entirely different brand or model segment is more valuable than ever.
“People are considering vehicles in price brackets with all sorts of features in ways that they haven’t before and dealers may need to be considering the kind of stock that they have that caters for the in-between purchase.
“I think dealers need to be more adaptable, and we are seeing that transition. We are actually seeing new and used car departments merging and salespeople are having the ability to cross-sell.
“So, an example would be a consumer coming in on a particular new car and the ability to find an alternate car to suit that customer’s needs sits in the used car department. That puts pressure on the business to ensure there’s enough used car stock that matches all categories within their new car model line-up,” Mr Odgers said.
“This means that dealers should be leaving no stones unturned when it comes to digital presence and their inventory across their website and obviously across the Autotrader group as well.
“It’s ensuring that the exposure of all potential in-between cars is there; ensuring that every single vehicle that is available within the business can be seen online.
“Every car that they have in stock should be listed and that is because of a lack of availability of a new car, where people might have to compromise, they’re not going to want to go from dealership to dealership to find out if cars are in stock. They’re going from dealer website to dealer website to find that out.”
Mr Odgers said that as buyers are having to compromise on the car they buy, a lot of new car showrooms and used car showrooms are merging and salespeople are getting upskilled to be able to cross-sell between new and used cars if the new car they came in for is unavailable right now, and there is a genuine need from that individual to purchase a new car sooner rather than later.
“But there are options and salespeople are being upskilled to ensure they can have the consumer consider a low-mileage, ex-demonstrator or used car. So that part is very crucial right now in dealerships and we are seeing dealerships nationally adopting that approach,” he said.
“So it’s about ensuring that they’re diversified with their used car stock to manage that expectation, especially with most brands having supply issues across the entirety of their inventory and available new cars.
“Significantly, sellers who make sure their contact details are publicly displayed and have clearly visible stock inventory online are the serious winners in the current, highly competitive climate.
“In fact, Autotrader’s Engage Report found that 78 per cent of buyers and 87 per cent of intenders check car listing and review sites before visiting a dealership. This makes online listings and accessibility critical to connecting customers to dealer stock.
“Those customers searching urgently for a vehicle will be guided by a different set of principles, and so should dealer marketing,” Mr Odgers said..
By John Mellor
