In the current economic climate when new cars cannot be relied upon to deliver sufficient revenues and bottom line profitability an effective used car strategy is a vitally important component of dealer, dealer network and manufacturer survival.
Many manufacturers manage their used car strategy through a 'used car programme' where there are varying levels of participation, manufacturer interest and customer recognition. A successful and sustaining used car programme will vary depending on the new car brand but it should always be appropriate to total volumes, vehicle values, customer expectations and the national market.
Using our dealer profiling tool, which allows us to capture and record vital dealer data, including current performance in comparison to manufacturer standards we can provide any motor manufacturer or importer with a clear view of their dealer network sales potential and training needs.
Our dealer profiling tool is bespoke to each country, dealer network or franchise, Some example questions you might like to know are shown here:
* How many used cars do my dealers retail every year?
* How many used cars do my dealers trade every year?
* What is the gross profit per unit my dealers make from retailing used cars - how does this compare to the net ppu?
* What is the average warranty cost my dealers incur?
* Do my dealers make more ppu from trade in's, ex demonstration vehicles, or vehicles they purchase from me?
* How many used car display spaces are there in each of my dealerships?
* What is the average used car stock turn and how does that compare from dealership to dealership and region to region?
* How long does it take my dealers on average to prepare a used vehicle for sale and what is the typical cost?
* How many of my dealers sell used commercial vehicles?
* How many of my dealers trade used vehicles between each other?
* How many dedicated used vehicle staff are employed in each dealership?
* What is the total potential for used car sales within the whole network?
We can provide you with clear and concise answers to these questions and many more to help you appreciate how dealers think, how they operate, the capacity and capabilities that they have, and what they need from you to help them grow profits and margins.
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Friday, January 22, 2010
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