October 3, 2023
Why is the used car market growing, together with the fashionable EV demand worldwide?
There are five factors in the auto industry that impact the used cars market share, namely: problems with new car supply, increasing demand for used cars, managing aftersales, building and nurturing customer relations, new approach to sales and marketing.
The global used car market size is expected to expand at a compound annual growth rate (CAGR) of at least 6.1% from 2023 to 2030. The competitive prices among new players have been one of the driving factors behind the growth of the used car industry.
The inability of customers to buy new cars has also contributed to the growing sales volume of used cars. Investments made by industry participants to establish their dealership network in the market have helped make used car options more viable.
The role of online sales has become a critical growth factor in the market, with online sites in auto marketplaces playing an essential role in bringing access to consumers with a single touch. Factors such as affordability, availability, and the emergence of various online players have also contributed to the growth of the market.
Now, more than 95% of used-car searches start online with customers researching vehicle information, and more than 70% of consumers use third-party websites to compare prices.
According to McKinsey research, companies across the used-car value chain—namely B2B and B2C dealers, OEMs, and financing and leasing companies – must reinvent and redesign business approaches to be more analytically savvy if they want to stay ahead of the competition.
Car dealerships need to be prepared for fear of continuing to be a factor in the buying process. What is the solution for a new business approach?
There is an integrated, cloud-based software platform that covers all processes within your automotive retail organization – DealerBox management system. It covers sales and marketing, financing and insurance, spare parts and repair services to customer relationships management, accounting, detailed reports and analyses.
In fact, DealerBox automates all internal processes such as car purchase, sales, transport, spare parts and service management. The solution orchestrates the interaction between the auto dealer systems and of all its partners in its digital journey – financial institutions, insurance companies, service centers, logistics providers, etc.
Here is the list:
• Have all data in a single platform
• Easily track all business meetings and showroom visits
• Deliver creative and timely marketing campaigns and promotional activities
• Never miss a customer call or any other follow-up thanks to automatic reminders
• Be comfortable with a large portfolio of F&I offers compliant with all regulations
• Control the vehicles maintenance in the warehouse
• Control the entire life-cycle of all sold vehicles
• Shorten sales cycle of used cars
• Deliver excellent customer service – boost service productivity and efficient resource allocation
• Have a clear view over the inventory and reduce stock-outs
If you are interested to know more about this solution, contact us.
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