Car dealers urged to keep a neighbourhood watch

As the used car industry works harder and finds evermore ingenious ways to overcome today's harsh economic realities, Exchange and Mart is calling on dealers to look local.

Latest research by Exchange and Mart shows a shift in consumer buying patterns. Previous evidence collated by the company in 2005 suggested that consumers would travel up to 100 miles in search of a new vehicle, but when 1000 car buyers were surveyed recently, there was a significant decrease in the number of people willing to travel further than 60 miles to look for a car.

The online used car market has seen phenomenal growth over recent years with customers prepared to drive further than ever in search of their dream car. But dissolving consumer confidence and a shortage of disposable income means buyers are thinking carefully before parting with their money.

Exchange and Mart believes that this means a return to tried and trusted methods is crucial. "Being flexible and adapting to the market has long been the hallmark of a successful dealer," admits Debra Healy, Digital Director at Exchange and Mart. "We have seen unprecedented growth in our online offering and the industry has been swift to embrace that change. The ability for dealers to advertise all of their stock nationally and locally with us, without cost limitations, has been key to our success. This is not necessarily the case with other classified sites. But we are definitely seeing that customers are keen to buy locally if at all possible. Certainly the research seems to be indicating that."

"The reasons for this are possibly two-fold," explains Healy. "Obviously the cost of motoring is an issue and when times are tough, many people simply can't afford, or aren't prepared, to go to the expense of driving long distances to look at a car that may not even be suitable. Even more simply, it also could be the choice and volume of cars available in local areas could be meeting the demands of buyers. If this is the case and historically it always has been, then dealers need to be channelling their efforts into this lucrative market that is literally on their doorstep."

"Capitalising on as many local marketing tools as possible is key to making the most of this opportunity, as is the ability to advertise all stock and not be selective. Maintaining a visually striking forecourt and fascia to utilising the local media, to building and developing a core presence in the community are just a few of the ways to help avoid the credit crunch squeezing your business."