Louise Wallis, head of business development, NFDA, presented 10 tips to delegates at the AM Used Car Market Conference to maximise the value of used car sales.
1. Ensure you have the right stock profile for your customers
Understand what your buyers want – type, specification, age, price – and display the stock in optimum condition, with each having a full description.
2. Ensure stocking policies are robust
All stock should be turned at least every 60 days, 45 is better. Move on a vehicle earlier and take a financial hit rather than wait longer to see if it sells.
3. Know the provenance of the cars you sell
Checks on a vehicle’s history, title, MoT status and mechanical condition are essential. Ownership documentation, recall data and details of outstanding finance must be to hand.
4. Market stock digitally
A digital presence is essential and you need to monitor the effectiveness of your marketing, ensuring websites show latest stock, using images and video and comprehensive descriptions.
5. Qualify your customers
Get to know your customer, qualifying them with information on the type of car they want, their budget, finance choice and period they plan to keep the vehicle.
6. Offer finance
FCA changes to consumer credit law are as much an “opportunity as a curse” since finance will have to be sold in a “much more process-driven way that could drive greater finance sales”.
7. Offer add-ons
Products such as extended warranties, tyre, alloy wheel, GAP insurance and MoT insurance.
8. Offer service plans
Service plans provide the additional opportunity for upsell of service and repair items.
9. Follow up post-sale
Exploit opportunities to sell extras and promote service and repair as well as build a relationship and gather testimonials.
10. Invest in the right staff
Recognise the value of your staff through training and incentives.