Weak markets in Europe plus over supply of product, has resulted in Manufacturers channelling significant effort and money into the UK. As the new car markets in the rest of Europe begin to slowly claw their way back to growth, manufacturer programmes are likely to become less lucrative for UK dealers. Being prepared for a reduction in support for the new car job is key to continuing the revival in the Car Sales department’s profitability.
As we have travelled around the country, this year, visiting many hundreds of dealers, we see manufacturers, almost without exception, dangling new car carrots in front of retailers. These are very tempting and it is easy to see why many dealers lose sight of some of the things that they know they should do other than registering new cars.
It is no coincidence that used car kpi ratios nationally are going backwards. The Used to New ratio has fallen 5% since last year, Days in stock has increased 4% and Return on Investment has reduced by 2%. Heading into the New Year, with new targets and new budgets to hit, this is as good a time as any to re-focus on the basics; to increase used car volume, profitability and stock turn.
So are you driving your whole car sales business? Or are you just being carried along by the new car market? Ask yourself the following questions. Are you offering an appropriate finance product to every used car customer every time? What is your sales team’s ability in upselling? Are you motivating them to do the right things? Are Service Plans something the Sales team believe in? Do you have a stocking policy? Do you enforce it? Have you profiled your stock? All fairly basic questions, but if the answer is no to any of them, do you have an action plan for getting back on track? You need one. A written one: with timescales and responsibilities and a review process to make sure it happens. Do it now. Make a plan.
If you want to take back control of your used car business, contact email@example.com for details of our “Used Car Work out”….from just £540+vat!