UK’s auto dealers target used cars and aftersales for growth in 2012
Experian dealer survey reveals lower expectations for new car sales
Nottingham, UK, 27 January 2012 – 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 per cent of dealerships [1] predicted that their used car sales activities would grow in 2012, despite 22 per cent stating that a shortage of good quality used cars was the biggest challenge facing their business this year. Just 38 per cent of dealers expected new car sales volumes to increase.
Major challenges
23 per cent of dealers stated that selling vehicles profitably was the key challenge facing their business, while a further 17 per cent stated that identifying and reaching suitable customers was their biggest problem.
Aftersales
55 per cent 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 per cent of new car customers returned to the dealership for servicing or repair, compared to just 14 per cent 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.”
ENDS
Name
Natalie Fox
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About Experian
Experian is the leading global information services company, providing data and analytical tools to clients in more than 80 countries. The company helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.
Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended 31 March 2011 was US$4.2 billion. Experian employs approximately 15,000 people in 41 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.
For more information, visit http://www.experianplc.com .
[1] The survey polled the views of 128 UK car dealers in December 2011