Internet takes 3 per cent of UK car sales

The internet accounted for 3 per cent of new and used car sales in the UK, according to new research from Mintel *.
Mintel said 200,000 vehicles, used and new, were purchased online in 2010 compared with total car sales of 8.1 million units.

Over a third of consumers continue to opt for the traditional approach of going via a franchised or independent dealer to purchase their next car.

The most successful websites in the automotive sector are those acting as intermediaries for those selling cars elsewhere, typically dealers or private sellers, and those offering information on cars.

Promotional spend on cars has fallen during the recession and is now 82 per cent of what it was in 2010.
While investment in internet rose 317 per cent over the same period it accounted for just 5.8 per cent of total spend in 2010.

Mintel singled out eBay Motors as the most successful site for used cars and at the lower end of the market.
“While other players, such as AutoeBid and Tesco Cars, are seeking to develop online car buying further, it remains of niche interest, said Mintel.

• Online channels like eBay Motors appeal to young drivers and men
• Auction sites are especially popular with low-spend used car buyers
• Interest in using the internet varies considerably, being polarised currently towards those aged 16-24. Beyond this age, interest drops

* Mintel is a leading international market research company http://www.mintel.com.