Mitigating the seasonal downturn in automotive

Consumer confidence is fragile but there are still opportunities to mitigate the seasonal downturn.

It’s no secret that enquiries can start to slow down in the lead up to Christmas and from conversations with many of our car retailing partners we believe the traditional slowdown may already be underway.

September plate-change

At this time of the year the September plate-change, the second biggest month of the year for new car sales, is a good indicator of retail demand, so how did it fair?

On the face of it September ushered in a positive start to the new 74-plate with car registrations up 1% year-on-year to 275,239 units, according to the Society of Motor Manufacturers and Traders. It was also the strongest September since 2020.

A closer look at the data also reveals some notable trends.

The market was -20% below the pre-Covid level of September 2019. And, continuing an established trend, fleet was the best performing market sector accounting for 54% of all registrations, outpacing retail’s 44% share.

That gap between the sectors is even greater when looking at the year to date figures with fleet taking 59% of all registrations, compared to 39% for retail.

Consumer confidence

The Finance and Leasing Association maintains consumer confidence started to dip in August when new business across all retail sectors dropped by 1%, having hitherto been on a par with 2023.

Commenting on the drop Geraldine Kilkelly, Director of Research and Chief Economist at the FLA said: “The consumer finance market was subdued in August and the recent recovery in consumer confidence appears to have stalled amid concerns over what the Budget at the end of October will bring.”

The Budget was also cited as contributing to a sharp fall in the September GfK Consumer Confidence Barometer, with the data company revealing the lowest level since March, wiping out several months of growth.

Neil Bellamy, Consumer Insights Director at GfK, said: “Following the withdrawal of the winter fuel payments, and clear warnings of further difficult decisions to come on tax, spending and welfare, consumers are nervously awaiting the Budget decisions on 30 October.”

Making every enquiry count

Looking back at the last two years we have identified how enquiry and order counts across our Dealerweb platform were strong for new and used cars in September, remained robust in October before dropping progressively from November into December.

This year’s lead up to Christmas could be more challenging as seasonal trends are compounded by fragile consumer confidence.

However, there are still opportunities to limit the impact on your business by utilising CitNOW Group’s solutions to ensure you remain on top of your customer enquiries and are using management data to ensure no opportunities are missed.

Dealerweb React 

With response times more crucial than ever in a successful sales conversion, Dealerweb React is designed to ensure 100% web-lead capture, followed up by 100% web-lead response, with 0% leakage.

Automating the collation of web-leads from virtually all sources, our software guides sales staff through a professional, consistent and personalised web-lead response process.

Dealerweb React is unique in that it is the only system that provides a business with the option to respond via a fully formatted bespoke HTML email template or with a direct call to the customer using our innovative Click to Call software.

CitNOW Sales 

CitNOW Sales builds on a customer’s initial online experience and takes the showroom to them – digitally. Designed for sales executives, it provides an easy way to film, edit and send personalised videos of new and used vehicles in response to individual enquiries, creating trust and building lasting relationships.

In a competitive environment you need to stand out and be remembered. Use video to individually address enquiries and move the customer from research to buying mode in the click of a play button. Our recent study highlighted there is up to a 15% increase in enquiry conversions when they are followed up with a video.

CitNOW Insights 

Enabling you to stay ahead with data-driven actionable insights and business intelligence.

Designed to effortlessly consolidate all key information into a centralised hub accessible to all business units and locations, CitNOW Insights empowers swift decision-making, boosting profitability and delivering continuous improvement. Gaining instant access to critical data, insights and trends in a matter of seconds all presented consistently to your team.

CitNOW Insights Instock 

Now more than ever, a new and used vehicle stock pricing strategy is essential for a successful automotive retailer. CitNOW Insights Instock empowers you to review your current stock, compare pricing nationally, identify locations that will maximise sales and view vehicles nationwide, so you can get the most from your existing and new vehicle stock.

This tool also enables you to price your stock accurately against national averages, ensuring your prices are always competitive.

CitNOW Insights Insales

New and used car sales performance is key to your showroom success. Being able to track sales team performance, monitor sales leads, have a live view of current activity against sales targets and project future trends, gives you and your sales team the control to ensure you maximise performance.

It can also be used to analyse which digital marketing campaigns have achieved the best results over recent months, enabling you to focus on those that have resonated with customers in the current climate.

Discover more about how Dealerweb React, CitNOW Sales and CitNOW Insights can maximise on opportunities in the lead up to Christmas.