Value for money is not all about the price

Value for money is something that we are all searching for when times are hard and probably should even when they’re not, and finding ways of saving money is an absolute must in the car business.

Unfortunately that often means that buyers, when looking to change, will wait until their existing car needs to be fully serviced and wants a great deal of mechanical and cosmetic preparation done to it which leads inevitably to a devaluing of their trade-in and subsequent inability to agree figures.

We also find that drivers are avoiding making insurance claims for small accidents which may affect their insurance no claims bonus thus avoiding the payment of the ever increasing excess.

The effect of all this is that the quality of cars in the market place significantly decreases and, as a knock on, really nice examples make even more of a premium in the trade which, of course, has to be passed on to the retail customer.

Consequently you end up with a strange situation where there are fewer buyers in the market, prices in general are falling and dealers find themselves with ageing stock they cannot sell but the really “special” cars still make all the money.

The dealers who are successful will recognise that by preparing and presenting their cars to the highest possible standard they will ensure that interested buyers faced with masses of choice will opt for cars which are ‘best in class’. Although dealers, by committing to this level of presentation, may not immediately realise the profit to match it will almost certainly ensure that they continue to “move the metal”.

From a buyers viewpoint it is more vital than ever that they don’t just shop on price but look at the all round package. Dealers who cut corners on preparation to sell cars cheaper may have unhappy customers returning when the problems inevitably occur. That initial saving could end up being a false economy if they end up having to attend to items that should have been completed the first time around.

Subscribe to Motor Trade Insider by Email


Comments are closed.

Powered by WordPress. Designed by WooThemes