Who needs to buy a used car?
Author: Natalie Banks - Digital Marketing Specialist
When it comes to finding the right customer to buy a quality used car from you, it can be quite a challenge to position the benefits of a used car, especially if the customer has always purchased a brand new one.
This will be made much more difficult with the sky-high used car prices that we’re all experiencing at the present moment.
Why are used cars priced so high?
If you are a car dealer you will know first-hand that the pandemic caused several ripple affects through the manufacturing chain, one of them being the global chip shortage that has halted the production of new cars.
If new cars can’t be manufactured, there’s more demand for used cars, which has driven up the prices, particularly of quality used cars, dramatically. Consumers who were due to purchase a new car are holding on to their existing car until they can get a delivery date on their new car, which could be months into the future.
How can dealers get hold of used cars?
One of the biggest challenges we’re heard our customers struggle with over the past few months is how they are going to source used cars.
With consumers holding on to their car for longer due to the shortage of new vehicles, it might seem, as a dealer, like you are swimming against the tide.
Consumers can expect to get more for their used car if they were to sell it, so there may be instances where car owners can part with their vehicle and take advantage of the increase in value.
Work from home became a trend in 2020, with offices forced to close due to the pandemic, which has continued right through to 2022. Those who previously commuted to a place of work, may find they don’t need their vehicle any longer and can sell their car to a dealer for a very attractive price.
You may also find some owners are happy to take public transport until they can purchase a new car, again being attracted to the value of their current vehicle.
Primarily, these owners will live in or close to a city centre where transport links are good, rather than those living in rural areas who rely on their car.
So, who really needs a used car?
There are certain groups of people that require a used car more than others, regardless of the current situation with pricing.
An existing car needs too many repairs
Some consumers are known for running their vehicle into the ground, rather than changing it every few years. This means there are several owners whose car has lived its last life and is now much more expensive to fix that it would be to purchase another used car.
A car has been written off or stolen
If a car has been stolen or written off, it will need replacing quickly, especially if the owner commutes to a place of work.
Usually, the owner will have an insurance pay out that they can put towards purchasing another vehicle, and they may also have GAP Insurance, which will provide an additional payment on top of the insurance pay out.
Public transport has been affected
It’s been noticeable, particularly during the pandemic, that public transport has been reduced dramatically, with some key services been removed altogether, leaving commuters high and dry. Those that live outside of a town or city may have previously relied on public transport to get from A to B, but with services reduced, may need to purchase a used car instead.
There will be a number of young adults who have recently passed their driving test that may have the money set aside for a new car, but now need to consider a used car instead.
Used cars are much easier to come by than a brand new one, so rather than waiting months for it to be manufactured, a used car might be a better option for some.
People are taking more staycations
This might not be considered a need per se, but when the pandemic stopped overseas holidays in their tracks, people took to taking staycations around the UK instead. Often, the existing car was not equipped enough for making these long journeys but was used to commuting to a place of work instead.
Caravan sales have also gone through the roof over the past couple of years, which means a suitable car is required to tow it safely. People were upgrading to SUVs which are designed for more rural environments and offered more space inside for passengers to travel these long journeys comfortably.
How to target these consumers
There’s various options when it comes to reaching out to these consumers, but a good place to start is to utilise the blog/news area on your website. You can target specific keywords or topics that drive traffic to your blog when consumers search for relevant terms in Google.
You could also utilise paid advertising to reach these consumers, showing your ad when they search for a target keyword.
If you are thinking of running campaigns to target potential customers, speak to Autoweb Design who would be happy to help you achieve your goals of selling more used cars.