Here are six ways to help increase profits from used car sales.
The tips are taken from Sewells Best Practice Guide to used car management.
Sewells is offering its complete set of Best Practice Guides for £250, £400 off the the usual £649.35 as part of a special offer.
To view free sample chapters from the complete series available please visit www.sewells.co.uk and call 01733 468254 to place your order.
1 Service plans
Many dealers successfully sell service plans because they are an excellent way of retaining aftermarket customers for longer and reducing customer defection.
It also creates an excellent opportunity for dealers to keep in touch with their customers to find out when they are likely to be changing their car and to scoop the next sale.
2 Extended warranties/MBI
It’s surprising how many dealers sell an extended warranty and then, when the warranty period expires, make now attempt to renew it. Many of the cars that have been sold will still be within the age and mileage criteria for warranty.
Dealers should actively remind customers that their vehicle’s mechanical breakdown insurance (MBI) should be similarly renewed. If they haven’t made a claim over the period, dealers can advise they’ve been lucky and that a claim is increasingly likely as a car gets older. If they have made a claim, they will already appreciate the value and are therefore more likely to renew.
3. Audio upgrades
If there is an older car coming in without a CD player or a very basic sound system owners could be receptive to an upgrade. DVD players and built in satellite navigations could also be suggested.
4. Security upgrade
As with audio upgrades if a used car comes in that could be fitted with new security features why not offer it?
It’s getting to the stage now where there are no new cars that don’t come with air conditioning as standard. However, there are plenty of used vehicles in the UK parc that don’t have air-conditioning and could be upgraded. One of the plus points for the customer is that they will more likely get more money when they come to sell the car on.
6. LPG conversions
LPG availability has increased (AM has a Proton GEN-2 with an LPG conversion on its fleet at the moment) and it’s a potential opportunity for customers to save on their fuel bills. LPG is half the price of petrol at the moment so it could be a enticing to a cost conscious used car customer.