TÜV SÜD: Internet offers enormous opportunities to the used-car industry, but potential is still underused

In mid-January the average price of the used estate car was EUR 17,500; two weeks later it had risen to EUR 19,400. Adjusting prices to reflect the market is a key to success in Internet-based used-car trading. To maximize the revenue potential of each used vehicle, the experts at TÜV SÜD Auto Plus have developed a tool enabling dealers to keep market developments in view at all times. The future of car dealerships is one of TÜV SÜD's key themes at the IAA, held in Frankfurt am Main from 15 to 25 September.

The Internet is now the most important source of information for car buyers searching for the perfect used vehicle. The used-car industry has adjusted to reflect the growing importance of the medium, as a survey of over 400 car dealerships throughout Germany conducted in the spring of 2011 by TÜV SÜD shows. The survey reveals that over 90 per cent use the Web as a sales platform, with over 50 per cent selling their second-hand vehicles in their own online stores. Christof Gerhard, Head of Used Car Strategies at TÜV SÜD Auto Plus, sees enormous potential in the opportunity of expanding used-car trading to join new car sales as a major pillar of operations. "If dealers have a highly professional website and ensure they are among the first hits turned up by search engines, they have excellent prospects of expanding used-car dealing into a flourishing sector of their business – particularly in the current climate where prices are stable."

However, TÜV SÜD's figures show that this potential source of revenue is still underused. At 30 to 35 per cent, the proportion of used cars in branded car sales is still low, and the gross revenue averages out at only just six per cent – often failing to even cover costs. "The Internet offers enormous opportunities if dealers make targeted efforts to optimize their ranking with search engines, and thus improve their visibility. Adjusting prices promptly to reflect rapidly changing price listings will also improve revenues", advises Gerhard.

To read the full article please follow the link: http://www.tuvps.co.uk/home-psuk/company/news-and-downloads/tuev-articles/tuev-sued-internet-offers-enormous-opportunities-to-the-used-car-industry-but-potential-is-still-underused

Do you have a question ask it here?

Leaders in EMC Testing , Environmental Testing, Safety Testing, Radio and Telecoms Testing, CE Marking, Vibration Testing, Climatic Testing, Certification, Training and Consulting