New analysis suggests dealers are making more proactive efforts to generate sales, as customer enquiries and vehicle orders continue to decline in the first quarter of 2018.

Our enquiry and order data captured in February 2018 indicates that total new and used car enquiry volumes from all sources – including online, telephone and walk-in visits – fell by 9%. This is in stark contrast to the start of 2017 – the strongest sales quarter on record – which saw enquiries and sales rise in anticipation of VED changes which came into force on 1 April.

In line with the decline in enquiries, our data shows overall orders on new cars fell by 10% in February.

Online enquiries fell by 2%, the number of walk-in visits declined by 15%, and dealers also fielded 13% fewer telephone enquiries.

There was also less consumer interest in used cars in February, with enquiries and sales both falling 9% compared to February 2017. There were substantial falls in telephone and walk-in leads for used cars, which dropped by 14% and 15%, respectively.

In a bid to drive conversions at a time when sales of new and used cars are faltering, it appears that dealerships are making increasing numbers of outbound calls to prospects. Last month, outbound prospecting call volumes rose, on average, by 10% compared with February 2017 – including a 28% rise in prospecting calls relating specifically to used car stock.

The trend in monthly enquiry and sales data provides an early indication that March has the potential to be a challenging month for dealers. A decline in enquiries in February could mean a fall in March registrations. However, first-quarter figures from 2017 were higher than usual, boosted by imminent changes to Vehicle Excise Duty at the end of March 2017 – suggesting the decline in enquiries and orders may not be as dramatic as anticipated.

Martin Hill, Managing Director, commented:

“It is unsurprising to see lower enquiry numbers compared to 2017, when the UK dealer sector recorded its highest ever first quarter sales. New car orders declined by 10% in February compared to the same month in 2017, while used car orders fell 9%, mirroring the decline in enquiries. However, our data paints a more nuanced picture, highlighting the continued shift towards online enquiries, as more customers seek to start the car purchase process online.

“Whilst the data predicts first-quarter registrations will decline year-on-year compared with 2017, it is encouraging to see dealers responding proactively to the downturn with increased outbound calls to prospects and encouraging greater profitability with higher GAP and paint protection sales. A modern automotive enquiry management system with robust follow-up procedures can help dealers react quickly to changing market conditions – particularly in the face of the challenging conditions we expect to see in March.”