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Creative campaigns can increase used car loans

By Tony Willard

A cultural change among dealers over the past year has introduced far more creativity in marketing campaigns and finance packages to support used car sales, said Kirk Franks, Alphera Financial Services UK sales manager.

 

 

 

Kirk Franks, Alphera Financial Services UK sales manager: 'It is pleasing to see more retailers offering used cars with attractive finance packages such as PCP'

“With a lot of new cars readily advertised, there is a requirement to be more proactive with used car marketing,” he said. “It is pleasing to see more retailers offering used cars with attractive finance packages such as PCP, formerly the preserve of new vehicles.”

Franks said dedicated used car campaigns around low-rate PCP, 0% HP and fixed-rate weekends worked: “Marketing is incredibly important to drive buyers into showrooms, especially for specific events. Targeted campaigns for both franchised and independent dealers, using attractive F&I rates as a marketing hook, can really work.”

An Alphera campaign for an independent dealer, to support used car sales over specific weekends, encouraged footfall and increased sales by well over 10%. It was the dealer’s best performance on used and pre-registered vehicles, he said.

Shaun Armstrong, Creditplus managing director, said 97% of buyers looked online for car finance before other research, which made it important for dealers to have exceptional engagement in their marketing promotion.

“It is vital for dealers to know who their multiple target audiences are, for new or used vehicle sales,” he said. “Customer demographics include price awareness and dealing with new and experienced buyers, so campaigns have to be very focused.”

Armstrong said dealers must consider whether a customer can easily configure a deal, how much information they need online before encouraging them to apply or visit a showroom, and the feeling of credibility offered.



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