Increasing hyper-relevant leads through online valuations
We are always looking for new ways to further optimise our NetDirector® Auto-e product to deliver our customers more frequent high-performing leads. And, with the rising cost of living making life extremely difficult for many consumers, it’s understandable that motorists are considering switching their vehicles in favour of more affordable alternatives. For Retailers and OEMs, this means online valuations are also on the rise. We’ve used these insights (and others courtesy of industry-leading data provider, cap hpi), to help drive more valuations on your site.
In partnership with Cap hpi, we’ve carried out some research into how valuations have fluctuated during the past 2-3 years. We hope to use this insight to understand what the rest of 2023 may hold in terms of valuations. All valuations are based on a comparison of the same set of vehicles at the 3-year age point unless stated otherwise.
Though a normal deflation of values would be within the minus 3-5% range, 2021 saw an extraordinary increase of 29.2%, in what was an unprecedented year.
As one year turned into the next, 2022 saw a significant difference, with values dropping by an average of 3.1%.
This year, we’re pleased to see the market return to a relatively stable state. Petrol and diesel vehicles increased in value by an average of 0.1% at the 3-year age point. However, values differed greatly depending on age. 1-year-old vehicles dropped by 0.7% (c. £350), while vehicles at older ages increased by 1.5% at 5 years, and 3.1% at 10 years. (that’s c. £100 and £120 respectively).
Unfortunately, the same could not be said for Electric Vehicles. They saw their heavy drop in the last quarter of 2022 worsen in January to an average of 6.6% (c. £2,050). Tesla Model 3 has reduced by an average of 33% (c. £13,275) in the past 4 months alone, while Model Y values decreased by an average of 11.1% or (c.£5,500). In fact, the rear-wheel-drive model alone dropped by a sizeable 14.1% (c.£6,800).
February continued in a similar vein to January with petrol and diesel cars increasing. Younger cars remained relatively stable once again while EVs continued to drop in value.
To help increase the volume of high-performing leads delivered through your NetDirector® Auto-e site, we’ve made some minor enhancements, designed to make it easier for your consumers to value their vehicles.
Not only have we moved the valuations call-to-action (CTA) from the bottom to the top of our used car vehicle detail pages, but we’re also offering all customers on our latest version of NetDirector® Auto-e with the valuations widget enabled a free skinny banner! Both of which we believe will encourage more of your consumers to value their vehicles.
If you would like to take advantage of this opportunity, get in touch with Customer Success or your Account Manager with your preferred choice of the options below.
In the meantime, you can stay up to date with enhancements, insights and Automotive Transformation Group updates on our company LinkedIn page.