The fluctuation in both demand and used car prices continues its meteoric rise and ‘off a cliff’ fall though Qtr4.

Looking back through various trade articles issued in 2023, this is certainly nothing new.  It’s just that previously there was quite an overlap between demand, availability and profit per unit that retailers were able to hold onto.

But is this a return to Qtr4 figures of old?

Mixed opinions, 2/3 of retailers are saying this is what we have always experienced and only a 1/3 saying the problems are due to retailers are now expecting car sales profits to continue month in, month out through the whole year.

Its not surprising that Manheim reported that conversion rates were falling, the ratio dropping a 1/5th on the same period in 2019.

We can however, report that our retailers are seeing a healthy increase in enquiry levels – hugely in the case of used cars from monthly figures over the past 4 years.

And, their conversion rates are holding up strong, but then they are using our enquiry follow-up / lost sale programmes so it is a little difficult to predict how other retailers are fairing.

If you’re conversion rates are not what you’re expecting it then it might be worth trying a sample batch of calls with Cymark.  At least you would get a true picture of what your customers are saying.

Back in the market, particularly the UK, the reluctance to take anything electrical in part exchange continues – unless you have an outlet for the car – as their prices continue to fall heavily week to week.

Traditionally stock of the expensive models has always been run down over the winter months, just so you didn’t have to write them down.  I think that is still continuing, it’s just that the number of cars that now fall into that ‘expensive model’ category has risen so much.

“Don’t get caught with it”, still prevails.

US / UK Conversion rates.

I was interested, while here in America, that US retailers expect a 50%-60% conversion rate, while in the UK, 25% is the more generally accepted average.  It does make me wonder if either the customers are a lot more switched on and margins are lower in the States or – which is my probable leaning – the UK retailers are much better at getting contact details for ‘any customer that enquired’.

All I can say is, out of all the car buying customers I know in America, very few have ever had a follow up call or DM piece relating to a similar car they enquired about 2 months ago (or 6 months or 2 years!).

If you want a little more information about conversion rates and how to keep them strong.  Drop me a message below and subscribe to the blog or Cymark on social media.