If you buy and sell vehicles and found 2019 a challenging year, you weren’t alone. Learn from 2019 to make 2020 a better year for business.
Anybody involved in vehicle sales last year – particularly selling new cars – might have noticed the market getting tougher.
But it wasn’t all bad news.
Find out what we learnt in 2019, and how to use the knowledge to make 2020 a better year for your motor trade business.
First, the bad news…
The SMMT reported a 2.4% decrease in car registrations between the end of Dec 2018 and Dec 2019. Diesel car registrations slumped 19% year-on-year, with business car registrations down over 34%.
Why was 2019 a tough year for motor traders?
New car sales suffered last year for various reasons, including:
- Political and economic uncertainty—Through most of 2019, sales stalled, with the public unsure of whether to stick or twist when considering buying a new car. As Mike Hawes, SMMT’s Chief Executive, said: “Political and economic uncertainty… have taken their toll on buyer confidence, with demand for new cars at a six-year low.”
- Regulatory issues—In response to global warming concerns, countries throughout Europe implemented new CO2 emission standards for vehicles. This led to an increase in vehicle manufacturing costs, and a higher price tag for new cars. This uplift in costs made customers less inclined to make a purchase.
- Industry trends—With the demand for electric vehicles increasing in recent years, motor traders have had a hard time adapting their infrastructure (e.g. supply chain updates) to meet the needs of this new product offering. Many younger consumers have opted for renting vehicles or using rideshare services rather than purchasing a new car.