May 24, 2013

Nobody wants the hassle

no-hassle

There appear to be increasing numbers of people deciding that car ownership has just simply become too expensive. What with the rise in VAT, ever increasing fuel charges, retail price hikes and even rises in the cost of insurance and vehicle excise duty has meant that many people have just decided enough is enough. The new car sales figures for … [Read more...]

Depreciation, perceptions and a piece of the pie

pacman-pie

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...]

They might buy your car too…

they-will-buy-your-car-too

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...]

Even when buying a car, every little helps

every-little-helps

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...]

The car sales process and the “9 point plan”

9-point-plan

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...]

Lead times lead to confusion

The fact that many car makers are struggling to supply new cars within an acceptable time frame is causing real concern for many dealers and they are losing customers to rival brands as a result. Even the ultra efficient Germans BMW, Audi and VW are being affected along with many others and sales personnel now have the unenviable task of trying … [Read more...]

September could be bleak for new car sales

New car sales numbers are down for July by some 13% and not likely to improve much for August. The real worry however is September. According to our sources forward orders for the new reg plate are a fraction of what would normally be expected. However, for the consumer, this could be good news because there will be a reaction from both the … [Read more...]

Selling cars is no laughing matter

I was having a pint with an old colleague who 'made his money and got out' and we were chewing the fat about the good old days where you could actually have a laugh whilst doing your job. He was commenting on the fact that today’s “modern salesperson” might not even go for a drink after work and discuss the days play if you like, and where, … [Read more...]

Shrinking number of used cars to retail leads to a change in thinking

We are always pointing out here at MTI how difficult it is going to be for dealers to find quality retailable used car stock in future due to the shrinking car parc. There will be less of the previously owned cars which dealers have traditionally vied for. In other words 1-3 year old cars with fewer than 40k miles which are still in warranty … [Read more...]

Buying cars in an economic downturn

Recession, double-dip recession, depression, global depression, fiscal deficit, higher taxes, spending cuts, job losses, fuel rises. That’s a rather unpleasant list of words which make most people feel uncomfortable. But Britain has experienced the worst recession since the 1930s and is facing the toughest squeeze in generations so there is no … [Read more...]

Long lead times playing havoc with part-exchange valuations

Dealers are increasingly worried about new car supply; with less production from factories as a result of the downturn dealers are selling many more factory ordered cars. The knock on effect of this is that, as we have said before, lead times for more highly specified examples from some manufacturers can be more than 16 weeks in some cases. This … [Read more...]

Car dealers get the jitters

Unfortunately the austerity measures currently being proposed will without doubt have a de-stabilising effect on the car market. We are hearing of large volumes of cars unsold at auctions, and prices in the region of 'cap below average'. Although most commentators predict this is a temporary measure given the long term fact that there will be a … [Read more...]

Used car prices and simple supply and demand

We canvassed the opinions of our insiders and colleagues as to what was hot and what was definitely not at present. As you can imagine there were the usual regional differences and seasonal adjustments for cabs and MPV’s but the overriding impression we have is that cars which fall into the category of ‘unique’ in some way are the big … [Read more...]

Used car prices – it’s just a guide

used-car-prices-it-is-just-a-guide

He emitted a little laugh at first but quite quickly his face turned into a grimace and he was clearly quite angry. “Do you think I am an idiot?” he snarled at the salesman who was facing him from the opposite side of his car. “No, of course not sir” he replied calmly, “I believe that to be a fair price for your car”. “Well … [Read more...]

Dealers need to improve their part-exchange valuations

According to our sources in the trade, more and more prospective customers are coming to the showroom with a clearer idea of what they think their car is worth. The days of relying on what the dealer offers are clearly coming to an end. The emergence of companies offering to buy any car regardless of age, make and mileage, gives the customer a … [Read more...]

The way to a customer’s heart is through his part-exchange

It is particularly relevant at present to write about the growing number of businesses wanting to buy your car dot whatever, and we have devoted lots of space to a topic which is baffling to us so must be even more so to car buyers (and sellers). These companies have exploited the obvious weaknesses that exist in many franchised car dealerships … [Read more...]

Used car prices starting to heat up

Well things are really heating up out there. Despite there being an awful lot of doom and gloom car dealers are generally reporting some truly great numbers. One sales manager has described this month as the success that January could and should have been, with many dealers in the worst hit areas saying that the bad weather in January may have … [Read more...]

Hyundai chase market share but at what cost?

With the scrappage scheme due to imminently disappear up its own tailpipe Hyundai are trying hard to find ways of carrying on the momentum created by their massive success with the scheme. These include “Trade & Upgrade” which allows buyers the same £2,000 part exchange allowance as scrappage customers and “Happy Returns” which offers … [Read more...]

Bad part-exchange appraisal is no recommendation

The following is a cautionary tale which probably ends up telling us as much about human nature as it does about car retailing but it contains a message that anyone in the business would do well to take notice of. It’s a cut throat world, this car business and many people, when presented with an opportunity to make a good profit will, of … [Read more...]

Dealers will soon buy any car

Sooner or later all car retailers will need to realise that as the new car market shrinks, or at least finds its natural level, it will naturally have a direct impact on the sourcing of used cars down the line. We are now seeing companies like webuyanycar.com or we willbuyyourcar.com having tremendous success in buying cars direct from the … [Read more...]

A world where cost of ownership means nothing

I suppose it is quite topical to talk about the obscene money earned by even the most mediocre of premiership footballers as we watch the odious Marlon King deprived of his privileged lifestyle for 18 months (although in reality probably just a long weekend). This outrageous reward is never better illustrated by the money that these players are … [Read more...]

Your first deal is your best and this one’s a cracker!

Many sales people will have been celebrating the end of a successful September campaign with a pint or two or three. Most franchised dealers seemed to have had a somewhat positive result and even the premium brands, which have not had scrappage to rely on, have fared reasonably well. So successful for some car makers has the scrappage scheme … [Read more...]

Part-exchange revaluation

Buyers who ordered a car three or four months ago and have been given a price for their existing car should probably ask an important question of their supplying dealer that may save them hundreds of pounds. … [Read more...]

August, it’s a funny old month

Having recently returned from a well earned break with the family I was raring to get back to business this week and, after the initial first day blues, I have been as busy as ever contacting my 'sources' for … [Read more...]

All aboard the scrappage bandwagon

Some dealers, either buoyed by the success they are having, keen to arrest a decline or attempting to wring out a bit more marketing juice and bask in some reflected glory from the success of the government … [Read more...]