Car Industry Insight - The Used Car is King

14 May 2021 Car Dealers Helpful Tips

Used car dealerships are in the driver’s seat. In the first quarter of 2021 used-vehicle prices grew 37% higher than the pre-pandemic prices of February 2020. To put things into perspective this is the largest quarterly price rise in over a decade.

It’s not all doom and gloom for new car dealers. For the first quarter of 2021 new car sales bounced back to show an increase of 137.2% compared to the same period last year. A total of 355,995 new vehicles have been sold in 2021.

Proceeding further into the year both new and used car dealers are expected to face challenges sourcing high quality vehicle stock. As reported by the AADA the production shortage is bad that customers may need to wait months to receive the stock. Due to COVID-related production disruptions overseas many insiders are unable to predict when there will be enough vehicles to meet the demand. Some dealerships are even reporting total stock quantities down 40% on their pre-covid levels .

Even with all the logistical issues currently faced in the automotive industry, Australian dealers are on track to sell well over a million cars this year eclipsing the predicted 2021 car sales numbers.

It’s so important for motor dealers that they have a clear plan in place for 2021 and beyond. Using the data available dealers should analyse what the market is saying.

What can dealers do to stay ahead?

As dealers face stock supply shortages, understanding the latest updates and your target market is so important. With Australia starting to recover from the impacts of COVID-19 updates on automotive industry can occur suddenly.

Some of the questions you will need to understand to be successful includes:

  • What is your preferred vehicle type?
  • Is the vehicle within your budget?
  • Where can I source stock?
  • What vehicles are buyers looking for?
  • How are you going to attract customers?

The good news is that even though many dealers struggle to source stock, some online classifieds are offering dealers the ability to buy stock from members of the public. Gaining the right stock at the right price is what will set your dealership apart from the competition.

What are the best-selling cars of 2021

Toyota has continued its dominance in the Australian car sales market. Toyota doubled the sales of the competition. Trailing Toyota is Mazda, Mitsubishi, Ford, Hyundai, Kia and Nissan.

For once it’s not the Toyota Hilux as the best-selling vehicle. The Ford Ranger has broken through as Australia’s most popular car in 2021.

Here are the Top 10 best-selling vehicles in Australia

  1. Ford Ranger
  2. Toyota Rav4
  3. Toyota Hilux
  4. Toyota Landcruiser
  5. Mitsubishi Triton
  6. Mazda CX-5
  7. Toyota Corolla
  8. Mitsubishi ASX
  9. Hyundai i30
  10. Isuzu D-Max

Analysing the data from the last 2 years we begin to see some common trends. The 4x4 Ute’s are consistently 80% of the most popular cars Australian’s buy on a consistent basis. We also see common family Cars the Rav4, and the CX-5 commonly place in the top 10. As no surprise the common small cars Australians go to is the Corolla and the i30, both of which has maintained their position for the last 3 years.

For dealers, its so important you keep on top of the sales statistics and understand what the market currently wants and at what price.

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