Arnold Clark is a huge group, with 24 franchises across more than 100 locations, and a network of Motorstore-branded used car sites, but it is not standing still. In three years, it has grown used car revenues by 25%, and annual sales volumes have topped 175,000.
Average used car days in stock are down from 45 to 42. Used car marketing has improved too, credited to tactical campaigns and in-house development of stock photography app, which has reduced the lead time to publishing online.
Finance penetration in used car sales has climbed steadily to an impressive 61%. Contributing factors include a strategy to convert cash buyers into finance customers, by being honest and transparent about the offers and products available, and positioning Arnold Clark as the ‘go-to place for finance’. Thanks to the volume of business, it claims to offer the lowest rates on the market, and finds carbuyers are willing to travel for an attractive deal.
Further benefits of creating finance customers include longer retention and opportunities to offer add-ons, such as service plans. The group’s ‘best deal guarantee’ promises buyers double the difference if they find a better finance deal with another franchised dealer group.
Stock is sourced from Arnold Clark’s contract hire and rental businesses, plus manufacturer channels and Motability. It also introduced a ‘Sell Your Car’ service in November 2015, which is active in 76 branches, with more to come.