Online Auto trade showing glimpses of recovery

While there are some reasons for optimism in the recovery of the Irish auto trade industry, a digital survey has found that car finance continues its decline and affects the Covid-19 sector.

Despite the corona virus pandemic, online search interest in new and used cars increased by 6% in the second quarter of 2020, but represents an 8% decline in the overall quarter consumer meaning has not yet returned to pre-standards.

In a survey conducted by Dmac media found some positive notes while heading into the third quarter of 2020. The survey was conducted amongst 230,000 internet users who used terms like ‘used cars’, ‘car finance’, etc.

There has been increase in the website searches regarding car dealerships. Comparing to the first quarter of 2020, there has been a 12 increase in the second quarter. 

Dmac Media also believes that there might be a strong third quarter with this and consumers will visit car dealership websites.

However, the most dramatic survey discoveries connected to car finance continued year after year with a decline in consumer interest rates.

As a search term, ‘car finance’ is down 27% compared to the last quarter of 2019, down 61% from the previous year.

 The limitations of the car finance market in Ireland are evident in Demac Media’s survey findings as Irish consumers shun large value purchases or opt out of user – led car finance applications.

Dave McEvoy, Chief Digital Strategist and Founder of Dmac Media said: “In what has been a turbulent year for car dealers, it is pleasing to see a year on year increase in search interest for the second quarter,” he said this as comment on the survey findings.  

He said that this bodes well for a strong third quarter as customers adopt to the new normal. However, the rapid and significant decline in interest surround car finance is a worry.

“Not only are we seeing a decline in customer actions surrounding car finance, the declining search interest surrounding the finance offering, is a clear indication that consumers are less likely to take on large overheads in the current economic climate,” he added.