The cost of living crisis is starting to have an impact on the types of cars buyers wish to buy, according to a new study. 81% of dealers say that they are seeing a shift in demand, with buyers wanting smaller, more affordable cars. In response, 63% of dealers have already modified their stocking strategy to favour smaller vehicles.The number of dealers that express pessimism about the used vehicle market has increased by another 9%. An easy way to modify your stocking strategy is to integrate our virtual garage manager into your business to manage stocks simply and efficiently.
These shifts come as the cost of living crisis continues to bite. The cost of food, fuel, and housing has all risen sharply in recent years, putting pressure on household budgets. This is starting to show up in the types of cars that people are looking to buy. Smaller, more economical vehicles are becoming increasingly popular as buyers look to save money.
The cost of living crisis is starting to have a major impact on the automotive market. Dealerships are having to change their stock offerings in order to meet the needs of buyers. Those that don’t adapt may find themselves struggling in the months and years ahead, so get in contact with us today to help simplify your stock management with our virtual garage manager.
Dealers are having to adjust to this new reality. Those that have been quick to adapt their stock offerings are seeing the benefits, with many reporting increased sales. However, there are still some dealerships that are to keep up with the changing market. The number of dealers expressing pessimism about the used vehicle market has increased as a result.
Dealers who were pessimistic gave an explanation for their feelings, with 91% (up 12%) indicating that customer confidence is deteriorating and a 21% increase (to 32%) believing that the availability of motor finance is declining.
With a 6% increase (to 46%) since last month, the availability of motor finance was one of the major difficulties dealers would face when it comes to the future retailing of used automobiles. The only factor that could top it this month (up 2% to 76%) was the scarcity of supplies.
Dealers clearly believe that consumer confidence is declining, most likely as a result of certain reasons that are currently striking, such as tax rises, record gasoline costs, and other factors.
Dealers who are able to provide popular models as good quality used stock are finding a very healthy level of demand from customers who desire them. The situation with the new car supply appears to be, if anything, getting slightly worse.
Despite stock issues affecting automotive garages for ordering their parts, our virtual garage manager makes it simple to see where you are low on stock so you can order ahead of time to prevent backlogs. The virtual garage manager can also improve communication with the client if they need to notify the client of an out-of-stock part as they can easily retrieve all of the cars records etc.