AM Online

How dealers can increase profits from their used car operations

Manufacturer case study: Mazda

Dealers on Mazda’s approved used car programme achieve an average of £250 more profit per unit, and sell a higher volume, than those that are not, said Tamara Brown, remarketing manager, Mazda Motors UK.

 
   

Mazda’s research has shown that the consumer perceives £1,500 added value in purchasing from an approved used car programme, which includes warranty, roadside assistance, a 30-day exchange and HPI checks.

Dealers selling approved used cars do better on Auto Trader, too. They averaged 16% more views per approved car, 57% more clicks, 40% more soft leads and 16% more hard leads by email or telephone. That was despite Mazda’s approved used cars listed on the classified sales website having 20% fewer images on average than non-approved ones.

A crucial advantage for dealers on the used car programme is exclusive access to quality late-plate, low-mileage cars from Mazda’s own company car or press fleet and 30 days of interest-free funding.

The carmaker has also completed a successful pilot of a repatriation sale with LeasePlan. That gave participating dealers access to three-year old Mazdas at up to 60,000 miles, which were ready to retail.

All the vehicles sold, and now Mazda and LeasePlan will work together on more repatriation, said Brown.

Next page: Stock Profiles: The Changing Dynamics of the Wholesale Market

If you are not a registered user your comment will go to AM for approval before publishing. To avoid this requirement please register or login.

Comment as guest


Login  /  Register

Comments

No comments have been made yet.