However, Barr said physical auctions were still “the preferred route” to sell unwanted stock, attracting interest from both dealers and consumers: “Live internet access into these sales, such as Manheim’s Simulcast and BCA’s Live Online, provide the best of all worlds. Dealer-to-dealer channels provide an alternative solution, but are used more selectively.”

Alex Wright, managing director of Shoreham Vehicle Auctions, said: “Physical is still king with vendors and buyers, but where online is very strong for us is when buyers are doing their pre-sale homework on which auction to visit and what to buy.”

Guy Thomas, head of product development at BCA, said consistent and accurate appraisal was critical to avert “over-valuations that are regularly caused by poor condition not being picked up at the time, or the specification being mis-described”.  

BCA’s Dealer Pro has been designed to help retailers control and manage vehicle appraisals, provide accurate valuations and manage part-exchange inventory and vehicle disposals.

“Dealer Pro allows retailers to be transparent with customers as they capture the condition of the incoming part-exchange car via an iPad, with automatic grading to NAMA (National Association of Motor Auctions) standard and real-time BCA Market Price valuation data,” said Thomas. “It also integrates with other dealer systems, such as lead management and provenance.”

Volkswagen UK recently adopted the package, and it’s currently used by more than 60% of its dealer network. Ian Plummer, VW’s head of sales operations, said: “It’s an important element of Volkswagen UK’s blended retailing strategy to integrate digital tools into the traditional sales process.”

 

Profitable upselling opportunities

Refurbished part-exchanges are an important revenue stream, but with a range of add-on products to entice the buyer, it need only be the start. Everything from warranty cover to service packages and paint protection can bring additional income from every car sold.

 

Service plans

Vantage Motor Group has 19 centres, covering six brands, and two-thirds of car-buying customers take a service plan, with an average duration of four years.

Andrew Hunt, group aftersales manager, said success has come by communicating the customer value, so each quote clearly states ‘you’re going to save £X’ by signing up.