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Mazda aligns new and used for improved margins

Mazda Motors UK adopts a closely aligned new and used car operation to ensure the brand’s used vehicles find themselves solely on the forecourts of approved dealers thereby delivering higher margins to its network.

Speaking at this year’s AM Used Car Market Conference, Mazda’s remarketing manager Tamara Brown will illustrate how a closely integrated new and used car policy works in conjunction with an entrepreneurial approach to its dealer network which keeps Mazda models within the network and ensures maximum profit for its dealers’ used car operations.

Brown said: “We do not flood the new car market with our product as it causes problems further down the line in the used car market for the brand and its network.  Instead, our new car and remarketing teams work very closely together. For example, I have sight of all new car promotions to ensure we will not be facing any negative repercussions when these vehicles find their way into the used car market.”

Brown will present at the Ricoh Arena in Coventry on 10th October as part of AM’s annual event which tackles current used car issues and provides analysis of the market and its performance.

Fellow speakers include Hugh Dickerson of Google, CAP operations director Adrian Rushmore and author of the latest BCA Used Car Market Report Professor Peter Cook.

By overseeing the channels to the used car market for Mazda vehicles, the manufacturer is the only source for high quality used car stock for the brand. Far from being an autocratic system, Brown maintained it keeps the brand within its 137-strong network and allows its dealers exclusive and early access to latest stock thereby protecting margins.

Brown added: “The benefit of our strategy is that consumers can only purchase high quality Mazda vehicles from our dealers because we have total absorption.  By resisting the temptation to push new car volume and integrating our remarketing strategy within the sales department as a whole, we have created a very healthy used car market for our dealers.

“Ultimately, it means our dealers can benefit from the best margins possible because they are not competing with the same product against the independents who may be more prepared to sell at a reduced margin.

“As Mazda’s market share grows so will our used car operation but we intend to continue to apply the same principles because it’s in the best interests of the customer, the dealer and the brand.”

Mazda offers its dealers a multi-channelled approach to sourcing vehicles including offering the earliest opportunities to purchase defleeted vehicles as well as providing vehicles via its online platform and physical auction which attracts around a third of the network. In addition, Mazda has partnered with Manheim to provide a means for dealers to off-load unwanted part-exchange stock.

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  • John - 27/10/2013 18:41

    Can the Mazda network solely handle ALL the volume? Do they have the dealer financing available? Will the dealership network become a logjam to obtain the annual volume target? It's a laudable goal but very difficult to fully implement.