Showrooms reopening will result in initial surge of new car buyers in June

Under new Government guidelines, showrooms and car dealers can reopen from June 1 if the necessary public health criteria have been met. Exclusive research by What Car? suggests dealers will face a busy month back, with nearly one-in-five in-market buyers looking to purchase after the Covid-19 lockdown lifts.

A poll of 4411 in-market buyers by What Car? revealed significant pent-up demand, with 18.39% of buyers intending to purchase a new vehicle as soon as the Covid-19 crisis ends, while 5.56% are looking to purchase within the next four weeks.

 

Under the Government guidelines, car retailers are to be among the first wave of non-essential businesses to get back to work from June 1 onwards – as long as the public health parameters set by Public Health England have been met. Dealers will have to adhere to strict social distancing guidelines to ensure public safety.

The Government announcement comes after the Society of Motor Manufacturers and Traders (SMMT) recorded a 97% drop in new car registrations in April. With just 4321 vehicles registered, April is the worst month on record since 1946.

More than 750 dealerships and manufacturer groups have signed up to use What Car?’s online New Car Buying platform, including Hendy Group.

Rachael Prasher, managing director of What Car?, said: “We know from our weekly online audience surveys that nearly one in five car buyers are preparing to purchase a new car when showrooms reopen. That pent-up demand is great news for under-pressure retailers and manufacturers.

“However, with the allowable date for dealership premises reopening pushed further back than many businesses were hoping for, it is also increasingly critical that retailers and OEMs ensure that they are responding to and nurturing to enquiries now.

“With the risks of Covid-19 still strong, many car buyers want to conduct their discussions with retailers online. That is where What Car?’s New Car Buying Marketplace can help, as it directly links our in-market readership with retailers online.”