Website Design Blog

Independent car dealers selling used cars in the UK are really starting to feel the pressure and are finding it very tough going in these current economic conditions.

43% of used Car Dealers said they will see a fall in their profits in the first quarter of 2012, which was revealed in a survey from the information specialist HPI.

The head of automotive finance at HPI, Darren Greenyer explained, “It’s clear from our survey that the market is tough for independent dealers, with 43% believing they will see a fall in profitability in the first quarter of 2012.”

He continued, “The good news is that over half the independent dealers surveyed by HPI expect profitability to stay the same in the first quarter of 2012, with 17 per cent anticipating an increase”.

It seems around 75% of independent car dealers are blaming the economic downturn being experienced at present for the lack of motor retail finance available to them. In addition, 73% of car dealers believe the shortfall in motor finance is damaging their ability to sell cars and their additional products. The same survey revealed a 38% decline in used car transaction prices which reinforce the concerns over a weakening motor market for independent car dealers.

However, on a plus note, 25% of those taking part in the survey reported a year-on-year increase in profit margins.

“This suggests that there are growth opportunities for the dealers who adapt to the changing market,” said Darren Greenyer.

The news of declining car sales means the battle is well and truly on to obtain each and every sale in order to try and take some of the pressure off,; therefore plenty care dealerships are pouring their budgets into marketing.

One recurring theme throughout the motor trade at present is the growth of the internet. This is down to the fact that we know 80% of car buyers are using a search engine to investigate a potential vehicle purchase. Intensive research has also proven that customers are 10 times more likely to go to look at a car which has been advertised with at least one image.

Therefore, developing a web presence rather than advertising cars via the local newspaper has really taken off.

The key with any form of advertising is to ensure you get the right message across to the customers. This could see many car dealers wanting to advertise with the most relevant and up to date websites under the belief they will bring in the most showroom traffic. The most popular sites at present are eBay and Auto Trader; but they don’t come without their issues.

There have been many press reports about the unreliability of both the sellers and the buyers on eBay which unfortunately gives this online market a bad reputation.

Alternatively, there is Auto Trader but this has also received a lot of bad press regarding their price hikes. Many current advertisers are trying to boycott Auto Trader after becoming “disillusioned with consistent price increases”. In fact a group called ‘Motor Traders Advertising Union’ (MTAU) was set up by Kevin Potticary and Graham Elliott back in 2011 in order to try and negotiate discounted rates from advertisers for those in the motor trade.

The best decision a car dealership could make in the present climate is to pay for their own website to be created in order to tap into online advertising and marketing for their business. At least with a personal website it means just a one off payment for the merchandise and then the dealers can advertise as much or as little as they wish on the internet.

For car dealers wishing to go down this route, Viper Image Media can assist you.

Viper Image Media offer car dealerships the opportunity to purchase their own website in order to advertise their auto trade online as well as advertise their stock of vehicles on the internet.

There are two website options to choose from, so it really depends how much money you wish to invest in online advertising.

The first option would cost a one off payment of £149.99 +VAT. This would include a domain name for the car dealership, a year free hosting with Viper Image Media, we get you up and running with your website and then it becomes very simple for you to operate.

If you wish to invest a little more money in your car dealer website, then the second option for £299.99 +VAT which includes a domain name for the car dealership, a year free hosting with Viper Image Media, we get you up and running with your website which then becomes very easy for you to upload stock and continue with use. The added benefit with this option is that it includes a FREE mobile website. This means that customers would be able to access your website with ease from their Smartphones.

Give Viper Image Media a call to discuss online advertising on 08456 432 110 or visit our website to get more details at www.viperimagemedia.com