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Car buyers more confident dealing online as average transaction value rises

The average value of a used car bought online has risen to £7,530 during lockdown three as consumer confidence in buying digitally increases.

In the first lockdown, data from warranty company Händler Protect showed the average value of a used car sold by an independent dealer was £5,600, but this figure has risen sharply with each lockdown.

As customers become more used to the process of dealing with dealers digitally, the amount of money they are prepared to spend online has grown too.

With car dealers selling cars digitally via click-and-collect and home delivery during lockdown three, the profile of the cars covered by Händler Protect now more closely matches the company’s pre-Covid data.

Händler Protect has seen the type of cars purchased digitally change dramatically, based on the used cars it is covering as lockdowns progress.

Händler Protect only works with independent dealers, which has allowed it to spot unique trends in the data relating to more than 100,000 cars covered by its warranties.

Händler Protect chief executive Lloyd O’Connor said: “Click-and-collect or home delivery has been a great way for many car dealers in Great Britain to keep trading despite having to close showrooms due to the lockdown.

“Working only with independent car dealers across the UK has given us a really clear picture of their activity since the start of the pandemic, and we could see during this third lockdown that the value of cars dealers were selling had risen considerably.

“For dealers offering click-and-collect or home delivery services, having a robust warranty in place makes a huge difference when selling to a customer they may never see. It gives our car dealers extra reassurance and they love the customer service we offer their clients, knowing if something goes wrong we’ll handle it for them.”

Cars sold online by independent dealers during the third lockdown are now on average two months younger than the average recorded in January 2020.

The cars independent dealers are selling also have on average 3,240 fewer miles on the clock and are £700 more expensive, suggesting customers are now comfortable spending more on a car bought remotely.

During the first lockdown, Händler Protect found dealers were selling cheaper cars, which on average sold for £5,600, and they were on average 9.47 years old, with an average of 81,589 miles on the clock.

During the second lockdown, the average used car selling price rose to £7,170, cars were 8.84 years old and had travelled 79,475 miles.

Now, during the third lockdown, the average selling price has reached £7,530, cars are 8.51 years old, and on average have covered 72,247 miles.

Händler Protect says becoming an Authorised Dealer builds instant consumer confidence that the car is covered, something that can be a challenge for independent dealers on their own.

Offering Händler Protect warranties also gives dealers the extra peace of mind that they are supported by the team, even for a car sold to someone hundreds of miles away, should something go wrong.

The Händler Protect team’s background in car sales, its easy-to-use app and the comprehensive support it provides for customers, including 24/7 breakdown assistance should they need it, has been a lifeline for many car dealers since the start of the pandemic.

*Article Source https://www.handlerprotect.com/

Automotive Industry Digest

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