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New Car Market Pressures Spill Over into Used Market

Compiled by ADME Newsroom from 1 source

First reported by AADA · 10 November at 3:47 pm

Who's covering this — 1 article

Industry trade: 1

Image: AADA

The quick read

Full coverage

AADAIndustry trade10 November at 3:47 pm

New Car Market Pressures Spill Over into Used Market

Key Headlines National used vehicle sales increased 1.2 per cent to 261,166, with growth largely driven by private sellers and older vehicles. Dealer listings of demonstrator and near-new vehicles…

Read at AADA →

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← Newsroom/Dealers & retailSales & market

New Car Market Pressures Spill Over into Used Market

Compiled by ADME Newsroom from 1 source

First reported by AADA · 10 November at 3:47 pm

Who's covering this — 1 article

Industry trade: 1

Image: AADA

The quick read

National used vehicle sales increased 1.2 per cent to 261,166
Growth was largely driven by private sellers and older vehicles
Dealer listings of demonstrator and near-new vehicles were not the primary driver of growth
Private sellers are gaining traction in the used vehicle market

For dealers: Australian dealers need to reassess their used vehicle pricing and inventory strategies to remain competitive

AI-assisted summary of the coverage below — check the original reporting before relying on specifics.

ADME commentary

The ADME angle

The fact that national used vehicle sales growth is being driven by private sellers and older vehicles is a clear indication that dealers need to rethink their approach to used vehicle inventory

What it means for stock and ordering

Dealers who focus on holding large numbers of demonstrator and near-new vehicles may find themselves at a competitive disadvantage, as these vehicles are not driving growth in the used market

Private sellers are able to offer older vehicles at lower price points, which is attracting price-sensitive buyers and putting pressure on dealers to reduce their prices

Pricing and margin pressure

Dealers who are unable to adapt to this shift in the market risk seeing their margins compressed, as they struggle to compete with private sellers on price

The growth of private sellers in the used vehicle market also has implications for dealer marketing and lead handling strategies, as buyers are increasingly looking outside of traditional dealer channels for their next vehicle

Competitor response

Dealers need to be prepared to respond quickly to changes in the market, and to be proactive in adjusting their pricing and inventory strategies to remain competitive

One decisive action a dealer could take this week is to conduct a thorough review of their used vehicle inventory and pricing, and to consider adjusting their strategies to focus more on older vehicles and competitive pricing

Go deeper — ADME analysis

The quick read

Full coverage

AADAIndustry trade10 November at 3:47 pm

New Car Market Pressures Spill Over into Used Market

Key Headlines National used vehicle sales increased 1.2 per cent to 261,166, with growth largely driven by private sellers and older vehicles. Dealer listings of demonstrator and near-new vehicles…

Read at AADA →