Out of the woods? How car dealers will operate after lockdown

Arrange your visit in advance and, because sales people’s time is likely to be limited, research the cars you’re interested in before you arrive. If you want a test drive, establish what you will and won’t be able to do. Bring a face mask and wear a coat if it’s a cold day – dealership windows may be open to encourage ventilation.

WHAT DO CAR MAKERS THINK OF REOPENING?

Most believe that click and collect has been so successful that it won’t be like throwing a switch.

“The reopening of Ford showrooms is an important and welcome step,” says Paul Singleton, Ford dealer operations director. “However, online browsing and vehicle selection, fulfilled by ‘click and collect’ and home deliveries from dealerships have been increasingly used by our customers over the past 12 turbulent months.”

Despite click and collect’s success, the savage decline in new car registrations in 2020 (down 29% to 1.63 million compared with the year before) and, more recently, the sharp fall this February when they sank 35.5% ahead of the March plate change, means car makers will see reopening as an opportunity to make up lost ground. Jeremy Thomson, Mazda UK’s managing director, says the brand plans to “claw back” 50% of the sales it lost from January to the end of February in April, May and June. “We’re placing a lot of emphasis on those months because the opportunity will be far bigger [than March],” he adds. “Stock levels we built up for March give us a great opportunity for a rapid recovery."

WHAT DO DEALERS THINK OF REOPENING?

“We’re super-excited,” says Duncan McPhee, chief operating officer of Lookers PLC. “We found last year that at each reopening there was a release of pent-up demand.” Cars he expects to fly out of his showrooms are EVs and hybrids. “Reopening will give customers the chance to try all the new technology. Even last year, EVs and PHEVs accounted for 13% of our business compared with 10% across the industry, and this year there’s an avalanche of new product arriving. I think we’ll have a monumental 2021.”

WHAT WILL THE USED CAR MARKET BE LIKE?

“Fuelled by pent-up demand, prices are picking up as we approach 12 April,” says Derren Martin, head of valuations at Cap HPI. “Sales rates have been at an impressive 65%, so the market only needs them to rise 35% for prices to start rising.”

The biggest climbers will be anything niche or that puts a smile on faces. They include sports cars, convertibles and large SUVs; in short, anything fun or aspirational. Mazda MX-5s are up by £500, Porsche Cayennes by £2000, BMW 4 Series by £2500 and Range Rover Sports by £3000. Diesel car values are holding up on the basis that some people still need to drive long distances, pull a boat or go farther on a tank.

Chief among the fallers – or bargains – says Martin, are MPVs, with values of Ford Galaxys and Seat Alhambras down £1200. Also down are some EVs, which Martin says are too plentiful and expensive. Hybrids such as the Toyota Prius and Auris are well down as people shun the private hire market.

Martin concludes: “Despite everything, used car stocks are well balanced, although there are fewer one-year-old models. Looking ahead, the market will enjoy a short period of strength as supply improves before values begin to fall, in part driven by the end of furlough.” So pay more for anything niche or fun, grab an unloved or EV bargain or hold your nerve until autumn when prices start to slide (but expect less for your part-exchange).

WHAT ABOUT DRIVING LESSONS AND TESTS?

From 12 April, in England and Wales, those learning to drive will be able to resume their driving lessons and take the theory test. They will have to wait until 26 April to do so in Scotland. Again in England and Wales, driving tests will restart from 22 April. Scotland has yet to say when driving tests can restart. In Northern Ireland, the date when driving lessons and practical and theory tests can resume will be reviewed on 15 April. These dates may change so check the DVSA and NIDirect websites. To sit the driving test, candidates must wear a face covering, sanitise the car’s interior and leave the windows partially open.

10 GREAT NEW CARS AND WHAT TO PAY

DACIA SANDERO 1.0 TCE 90 COMFORT Target price: £7870 Roomy, comfortable, decent to drive and great value.

Seat Leon 1.5 TSI 130 EVO FR Target price: £21,176 A big boot, bags of rear cabin space and a punchy engine.

TOYOTA GR YARIS 1.6 CIRCUIT PACK Target price: £33,495 We awarded it five stars. What else do you need to know?

Volvo XC90 B5D 235 MOMENTUM AWD AUTO Target price: £52,255 Forget the showroom – 3500 people bought an XC90 online.