February 10, 2012
Car Buying Guide
Marketing cars has taken on a whole new impetus in the last few years. The speed of that change has surprised many car dealers to the extent that they are confused about just how far they need to go to make it financially viable. For example, we are told by all the marketers that a classified car ad with 3 images is almost 10 times more likely … [Read more...]
Whilst talking to a sales manager incognito at a local main dealer earlier this week, I asked him how business was generally and about his fears for the coming months. “It is what it is” he replied somewhat dolefully, “we will just have to face whatever comes at us and deal with it”. Clearly customers who have become so much more … [Read more...]
The storm before the lull is how one of our car dealer colleagues describes what is happening at present. He suggests that the rise in showroom traffic and unseasonably high sales order take is basically down to squeezing the last bit of goodness from the success story of last two years. With all the offers about and the hype surrounding the VAT … [Read more...]
What is depreciation? To some people the depreciation in value a car suffers during their ownership is notional at best. Outside of the trade do many people really care all that much about the depreciation their car has suffered and the ultimate resale value? Well if the popularity of car buying sites such as webuyanycar.com and … [Read more...]
Let’s face it, few dealers have ever admitted to business being brisk – a ‘cup half empty’ mentality pervades the industry and always has done. Given the knocking the industry has taken over the years (block exemption, emissions-based company car taxation and showroom tax to name just a few) it is hardly surprising that many dealer … [Read more...]
Despite the threat of a double dip recession, many of our sources are reporting unseasonably good showroom footfall and fairly strong demand. The rental companies are selling plenty of cars to the network and the auctions appear to be bustling with buyers. Of course this does not apply to everyone and I’m sure there will be many scratching their … [Read more...]
Franchised dealer groups are set to up the ante when it comes to acquiring stock. Having traditionally relied upon the part-exchange route to generate retail stock they have realised that, as the new car market has shrunk, there are likely to be less quality cars to re-sell on the market. Having stood by and watched the rise of car buying sites … [Read more...]
When the economy is suffering like it is right now, we all look for more value, and as much as we can get for our pound. We don’t like wasting money and we certainly don’t like giving it away for poor quality products or services. In the car business it’s really not that difficult for a good situation to turn bad quite quickly, all it … [Read more...]
In challenging trading conditions we do tend to see the cream rise to the top so to speak. In car retailing as less customers are in the market sales people have to work harder to generate sales from a smaller lead base. Converting enquiries to appointments is a skill which requires training and experience and relies on everybody in the chain … [Read more...]
There is no doubting the scrappage scheme provided a welcome boost to the UK automotive industry at a time when it was most needed but, as we have recently highlighted, the long term effects for that short term shot in the arm may prove to be more far reaching than perhaps anyone in the industry anticipated. We have accepted the fact that the … [Read more...]
Whilst all and sundry are worrying and fretting about cost savings and cuts, we need to start looking at ways of making car buying and maintenance as cost effective as possible. Here are some simple tips and advice when considering where to go. Car dealers are battling hard for your business always make an offer whether it is to buy a car have a … [Read more...]
It’s a funny thing in the motor trade, customers are increasingly wondering why they are not getting the treatment they deserve for what is probably one of the largest financial investments they will ever make. Each week we hear of customers who are wandering around showrooms and no one is acknowledging their existence, let alone attempting to … [Read more...]
Let’s talk about “residual values”. Yes, we’re talking about the dreaded “D” word – depreciation. Once we know the picture regarding a prospective car’s future value (it’s our money after all!) then it may become an important part of the car buying decision process. Residual or future value is all about supply and demand, brand … [Read more...]
The car sales process has been developed over many years and evolves with each new generation of sales teams, new products coming to the market and the need to develop new income streams and profit centres. The fundamental process has remained the same, however, and is designed with only one objective: to separate you from your money (and, of … [Read more...]
What a load of cuts! We have been hearing about the cuts and austerity measures that are needed for some time now and, as the chancellor revealed, they will be deep and potentially fatal for many people. Lots of us will face major hardship and public sector workers will be hit hardest of all in terms of their job security. I don’t pretend to … [Read more...]
The resilience of the car business is certainly showing itself if the latest finance figures are anything to go by. We have long trumpeted the fact that dealer finance is a very competitive way of funding a car purchase. Even during a downturn and period of economic uncertainty and given the fact that lending has been reduced by many nervous … [Read more...]
What is it about some car salespeople? Sometimes you wonder if they really get what car sales is really all about. They have fantastic training, are equipped with a sales process that is idiot proof and have some fantastic products which often sell themselves, yet still everyday up and down the country potential customers are made to feel like … [Read more...]
The last quarter of the year has always traditionally been the hardest in the world of car retailing. The job peaks in September then goes away for a little rest before coming out to play again in January. The truth is car dealers really ought to have made the profit they need to hit their budgets by now because if they haven’t, well they are … [Read more...]
It’s the time of year when buyers should be paying close attention to prices and making comparisons. As the market adjusts downwards, as is the seasonal norm, dealers are looking to rotate their stock as demand drops and there is only one sure-fire way of doing this and that is price reductions. Many dealers have what we call a “stock ageing … [Read more...]
Right now car buyers are in short supply in the showrooms of Great Britain and dealers have had to become very innovative in how they market their cars, but also how they incentivise their staff to work harder for that sale. Customers shouldn’t be surprised that they reside on someone’s database and they get harangued with a barrage of … [Read more...]
At a time when customer service is critical it appears that maybe some dealers do not understand that this means good service. Thousands of pounds have been invested in putting a process in place by car manufacturers with various incentives, staff training and coaching yet still according to surveys (which 2010 in this instance) car dealers are … [Read more...]
Perhaps the most damning statistic for today’s car dealers is the one which tells us that 44% of customers who have bought cars have had no further contact from the supplying dealer. Yes by “no contact” we mean, um, no contact, nothing, zilch. That means that those customers will feel little if any loyalty to that dealer and the business … [Read more...]
Sales people are funny creatures. Many would rather worry about what car they drive rather than how much money they earn, and for some having the right pen or wallet and wearing a sharp suit make them think they have truly arrived. Forget the fact they may not have sold any cars this week, as long as they look good they think they can get away … [Read more...]
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