Paragon is celebrating the results of its first year of partnership with Volvo Car Remarketing Services, claiming a significant saving for the Swedish manufacturer’s operation.
Volvo is now achieving a large proportion of sales via its digital/direct channels, a ‘days to sale’ reduction of an average of 14 calendar days and physical auction volumes reduced, according to the logistics specialist.
Volvo Car Remarketing Services appointed Paragon in mid-2015 as a fully outsourced remarketing partner.
The contract saw Paragon take full control of all remarketing channels with the aim of supporting residual values and reducing days in stock. A key focus was on engagement with Volvo franchise retailers nationwide.
A spokesman for Paragon said: “By engaging the retail network, Paragon has significantly reduced commodity costs (physical auction) to the manufacturer and reduced franchise buyer fees, which are commonly a barrier to realising a vehicle’s true value if sold at a physical auction.
“The results of the programme to date are compelling.”
Paragon said that its efforts, centred around leveraging digital sales, had seen budget performance exceeded every month.
The spokesman added: “Overall, the step change in programme to consciously move to a digital-led model has yielded a net benefit to the Volvo Car UK (VCUK) used-car programme (term to date).
“The VCUK remarketing programme is an industry-leading model for what can be achieved when technology and intellect are utilised in harmony.”