February 4, 2012

Could car sales utopia be edging closer?

utopia

Car retailers are constantly looking at ways of improving the service they provide to their customers but also the perception of how people view the motor trade in general. The old adage is that if you have a good experience you may tell a few people, but if you have a bad one you tell everyone and with the growth of social networks it is perhaps … [Read more...]

When is a used car bargain not a used car bargain?

sold

With the end of January in sight many dealers are breathing a collective sigh of relief at the fact that there are indeed customers about with money to spend on cars. However it is clear that buyers are taking their time to choose a car and are being selective about where they are buying from. The price war is also hotting up with many … [Read more...]

Americans holding on to their cars longer

uscars

Americans are holding onto cars longer, pushing the average age of a vehicle on the country's road to a record 11 years. The average age of a car last July was 11.1 years, while the truck average was 10.4, according to automotive research firm Polk. Unemployment and the economic factors have caused people to put off buying new cars and … [Read more...]

Optimistic predictions and the same old mistakes

rosy

Whilst many car manufacturers are predicting growth this year, the franchised dealer network is nervous at the prospect of having registrations forced upon them in order to enable their car making masters to achieve these growth forecasts. There has been much said in the trade press along the lines of it being hard in retail sales but there … [Read more...]

Move aside Renault there’s a new kid in town

ec72

The Chinese are coming! Well they’re dipping their toes in the car retailing water anyway. With most large car makers and dealer groups looking to exploit the economic spurt happening over in China it’s somewhat ironic that jauntily named Chinese car maker Geely will be coming to a showroom near you come the end of the year. Its … [Read more...]

Car dealers need the appliance of science to value their older part-exchanges

appliance-of-science

For car dealers and car buyers alike, getting the part-exchange right will be more vital this year than in recent times - given the likely dearth of retailable 3 year old examples. With the pivotal 3 year old sector some 500,000 units down customers wishing to trade-in for a new car may be sitting behind the wheel of a far more valuable asset … [Read more...]

January’s already proving tougher than expected

tough

The one upside of a downturn (see what I’ve done there?) is that the roads are less busy; well that’s the theory anyway. However I really have noticed in my journeys up and down this green and pleasant land that most of my hold ups seem to be for accidents rather than pure congestion and although I generally get to where I’m going to on time … [Read more...]

“Challenging market conditions in 2012″ doesn’t really begin to cover it

2012

Car Dealers competing for less business is the likely outcome for 2012 as the downturn looks to have set in for a while yet. Maximising every enquiry will be a vital factor in the success of the business as a result. According to many in the industry car makers are likely to push for registrations putting a lot of pressure on the late plate … [Read more...]

Mini recalls 235,000 cars worldwide due to a pump fault

mini

Mini is recalling 235,000 vehicles worldwide - 29,868 cars in the UK - due to a fault with an electric water pump. The fault, which could potentially be a fire risk, is known to affect vehicles, including the Cooper S and John Cooper Works models, built between March 2006 and January 2011. Owners will be contacted in the coming weeks to … [Read more...]

One size definitely does not fit all

onesize

One of the biggest challenges facing car dealers in 2012 is competing for a smaller piece of the pie in a shrinking market. With fewer cars and therefore less choice, dealers are going to have their work cut out to be the first choice for consumers with the money to actually buy a car. We often talk about how dealers are “upping the ante” … [Read more...]

Mild weather, 4WD’s, self-registration and as Renault “consolidate” who will be next?

fish

The unseasonably mild weather in most places is putting some dealers in danger of static 4wd’s which they have bought at a premium in anticipation of the familiar snow which usually greets us at this time of year. The converse to this however is that convertibles are actually selling, although not in great numbers, for canny buyers who believe … [Read more...]

Early Jan brings some cautious good news (unless you’re selling a 4WD)

xc90

Well the mince pies are gone, the champagne bottles are empty, the gym membership has been renewed and the resolutions are already being broken. It’s well and truly back to the grindstone for car dealers and like many high street retailers there are some encouraging early reports of brisk business. It usually takes until perhaps the middle of … [Read more...]

Will 2012 be the year the social media finally penny drops?

penny

If the buzz we are hearing is to be believed then social media is set to play an ever increasing role in how car dealers do business in the coming year. The fact is that many dealers who used to think just signing up for a Facebook and Twitter account was some kind of silver bullet are now realising that it’s how these accounts are managed and … [Read more...]

New baby, new car?

new-baby

You were prepared for sleepless nights. You knew you’d spend the GDP of a small country on new baby kit. You’d braced yourself for the avalanche of lurid plastic about to descend on your beautiful home. What you might not have fathomed was that your driving life was about to change forever. From the type of car you own to your driving style … [Read more...]

Happy New Year…when the going gets tough…

going-gets-tough

As we welcome in 2012 it is worth reflecting on what a very challenging year in the motor trade 2011 was. It was a year which saw many dealerships suffering, some having to call in the administrators and some sadly going under completely. Many car buyers deciding to delay or cancel their decision to buy another car in favour of sticking with … [Read more...]

Next year it will be more important than ever for car dealers to do things right

wrong-way

It’s likely that the next few months will be crucial when looking at the prospects for many car dealers in the UK. With showroom traffic at a 3 year low along with consumer confidence, there will need to be some radical new thinking and some real innovation to attract car buyers. It never ceases to amaze me that, unlike many retail businesses, … [Read more...]

Autotrader beware, many dealers are reeling in their big nets

net

Whilst speaking to many dealers recently, both franchised and independent, it is interesting the way in which the marketing of cars is constantly evolving. For example we are encountering many dealers who are becoming increasingly unhappy with the price hikes being introduced by Autotrader. Many are choosing to either limit the kind of cars … [Read more...]

The heat is on as Christmas approaches

keep-calm1

Christmas is nearly upon us and some dealers are telling us that things are starting to turn around. Not a lot, it has to be said, but there are a few buyers out there who are looking for some festive bargains. There is a feeling that although January normally heralds the start of price rises, as the sales kick in and wholesale prices rise as … [Read more...]

Used car buyers are getting very picky

picky

Car buyers are now being very specific in their choice of used car, in a way usually reserved for ordering a new car to an exact spec. Dealers are saying that it’s not just colour it is now mileage parameters, exact spec and age. However once their precise requirements have been attained people are quite prepared to pay for the right … [Read more...]

Now, more than ever, it’s time to be positive

iceburg

I’m a great believer in trying to present a positive attitude. I find myself at present switching the TV or radio off when the news comes on because I know 90% of it will be depressing and gloomy. Although I’m sure no on wants to be misled, it would be nice if someone could at least try and talk up what positives there may be, no matter how … [Read more...]

Some dealers just can’t shake off the bad old days

bad-old-days

The fact that trading conditions have been tough this year (to say the least)and look set to be even tougher next year, car dealers need to be lean, mean, fighting machines to survive and without the precious commodity of customer footfall that is going to prove somewhat difficult. In advocating best practice and transparency in dealings with … [Read more...]

Car dealers taking their medicine

medicine

The resilience of the motor trade never ceases to amaze me. When medicine needs to be taken we glug it down like a drunk at a free bar. At present it is fairly brutal out there and although many cars are still sought after and fetching a premium price others are either not selling at all or going for beans. Car buyers are being choosy, and … [Read more...]

Forget Christmas New Year’s come early this year!

nys600jpg

Watch out the sales are coming early! Have you noticed that the sale signs are about even though Christmas is still over 3 weeks away? There are promotional banners up everywhere and DFS must be feeling a little put out seeing as they have the 52 week sale more than adequately covered up till now. On a serious note though, the trigger happy … [Read more...]

What’s the true cost of focussing on price?

price

There is huge focus in the industry about saving money and finding new and exploiting existing profit centres. Margins are under pressure like never before and stocking costs associated with ageing inventories are adding to the burden. The actual profit from the car itself is under server pressure and in some cases dealers will mark cars down at … [Read more...]

VW Amarok – basic but still a wolf

amarok250

I have been driving my new VW Amarok for about 2 months and today I have decided to tell you all about it. Let me start by saying that reviewing cars is not my usual forte but the bods at MTI want a good truck story as winter sets in and as they found out I’d recently got one they asked me what I thought of it, so here goes. If you know … [Read more...]