The car market is showing positive signs of pent-up demand despite the current lockdown driving down car sales according to Auto Trader.
Data released by them through its Monthly Market Intelligence report shows that while new car registrations were down 35.5 per cent in February 2021 compared with the same month last year, there are many strong indicators of pent-up demand among consumers ahead of showrooms reopening on April 12.
Auto Trader had 58.8m visits on its platform last month, up 3.6 per cent on February 2020, with daily views on new cars 60 per cent higher than last year. Used car ad views were up two per cent. Used car leads were up six per cent year-on-year, but the big winner was new car leads. Despite the lockdown, Auto Trader said February was a record month for new car leads – up 100 per cent on February 2020 and up 27 per cent on January.
This suggests pent-up demand ahead of showrooms reopening on April 12, said Auto Trader.
David Smith FISC’s Chairman agrees and said “there’s no doubt that a lot of consumers have built up a significant amount of cash as a result of the lockdown and the quantitative easing measures taken by the Bank of England. All our indicators are that consumers will be ‘quick out of the traps’, and that motor retail will benefit”.