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Carwow credits lengthy new car lead times for soaring used car enquiries

John Veichmanis, chief operating officer at carwow

Carwow has seen a 113% increase in the proportion of consumers who place a formal enquiry for a used car after initially searching on the platform for a new car.

The company evaluated the volume of leads shared with dealer partners during the first five months of 2022.

The car marketplace said the findings underline how dealers are adapting to new car shortages caused by the semiconductor crisis and other external factors.

John Veichmanis, chief operating officer at carwow, said: “With sales of new cars down across the UK and the lack of supply not expected to improve soon, the used market is assuming ever greater importance for motor retailers.

“Our enquiry statistics over the past five months underline how growing numbers of prospects are becoming more open-minded about purchasing used vehicles.

"Carwow provides retailers with an unrivalled opportunity to market their stock to millions of prospects who are ready and able to buy.”

The findings follow carwow's recent leadership recruitment drive with the appointment of Cupra and Seat UK commercial marketing manager Alistair White as its new head of sales.

White’s appointment came a fortnight after carwow revealed that an “exciting and ambitious phase of growth” had already prompted it to strengthen its leadership team.

Its growth phase follows an injection of $55 million (£41.5m) in funding to scale its Sell Your Car division in December 2021, a £17.2 million funding boost from investors including ITV and Channel 4 in March 2022 and the announcement of further investment from Geely’s Volvo Car UK brand in April.

The latest AM industry special issue

The complexity of running a modern dealership can be misunderstood easily by people looking in on our industry.

Any general manager has so many plates to spin, and they must foster a talented team that they can rely on to not just do the basics well, but to sprinkle some magic on top that customers can notice.

If the marketplace in 2023 is steadily returning to relative normality, this normality now includes the drive to find customers for an increasing supply of electric vehicles, and the need to source used cars from all channels and market them carefully. And of course there are the desires to delight consumers with an omnichannel experience and to hold on to decent margins after a couple of years of strong profitability.

The expectations of both the customer and the business’s stakeholder must be achieved to the optimum level.

In this special digital publication, industry experts, prominent suppliers and franchised dealers share their insights on the major aspects required in running a modern dealership well.

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Click here for used car best practice and procurement insight

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