Do Successful Used Car Professionals Exist For Manufacturers?

Since my last post, It’s The Used Car Business!,,, Stupid! I have had many conversations around just why truly capable used car professionals are in such short supply and therefore demanding such highly paid salaries and packages. During these discussions it has struck me just how out of touch some thinking is, when it comes to the professional skills-set required to be able to succeed in the used car arena.

Thus my post today, which is designed to outline just what the skills-sets and experience required are, (of these illusive professionals), and for manufacturers it is a doubled edged sword because not only do you need a team of successful used car professionals within your franchise dealer network, you also need a successful used car professional at manufacturer level.

Now understanding the differences between the two is important, because although working in unison, the skills-sets required at manufacturer level and franchise dealer level, although overlapping, are subtly different. As this post is designed for manufacturer based professionals, I will not make reference to the skills-sets required to be a successful used car professional within the franchised dealer environment, but anyone wishing to read the dealer article, which will outline the skills-sets required for used car professionals who are capable of building successful used car operations at franchise dealer level, need only to follow the direct link to the article itself; Do Successful Used Car Professionals Exist For Franchised Dealers?

Most importantly, the professional capable of driving forward your used car ambitions at manufacturer level must, in our opinion, have an in-depth understanding of what it takes to get a used car business by the scruff of the neck, run it hard and drive it towards success. In an ideal world they will have run a used car operation themselves and therefore understand the demands and requirements of a successful used car operation. This is imperative, because the used car business, the one that influences your future new car success, is in many ways a very different business to operate, so the business you probably have little understanding of is actually the business most affecting your new car success in the future.

And it is because of this fact that many decisions made by manufacturers in the past, in relation to appointments in senior used car positions, have left us bewildered. It is almost as if there has been no process of evaluation in the appointments, no striving to find the used car professional with the experience and the knowledge in how to build successful used car programmes for franchised dealer networks; no its more a case of let’s just move this individual into the role, it can’t be that hard.

Now I understand the reticence to embrace used car professionals, in the main they are not a “Good Fit” politically for the manufacturer environment, but as our market continues to evolve, the importance of used car success is going to become more important to manufacturers, in terms of their new car success and the financial performance of their associated franchise dealer networks. So we would argue that now is the time to be looking for genuinely capable and successful used car entrepreneurs, (before you find there are none available), and accepting that you must also create an environment where they can succeed on everyone’s behalf.

But in doing this there must also be an acceptance that challenging questions will be posed by this individual, they are going to challenge conventional thinking and maybe worse, trample on some sacred principles. I have seen and experienced much professional prejudice against used car professionals in the past and now many of them reside in the independent and specialist used car sectors and/or are running their own successful independent businesses. But now is the time for some different thinking and embracing the benefits that this individual will bring to the overall used car and new car objectives.

So what skills will this individual have to have, in order to bring successful, effective and proven used car development skills to your business? Well although not a definitive list, the skills and experience below should be the absolute minimum level of acumen and experience;

• A proven track record of running successful used car operations at franchise dealer level.
• The ability to construct and deliver the used car business development programme required, in order to ensure that the franchise dealer network receives the tailored used car development programme that will ensure success.
• Constructing and overseeing the used car training and personnel development programme that will take used car professionals on a path of professional development.
• Capable of presenting complex business cases for investment in used car development at both franchisee level and the most senior level within manufacturers; including the overcoming of all objections.
• Auditing expertise, in terms of an ability to walk into a business and assess the current strengths and weaknesses of a used car operation, and then go on to construct and deliver the bespoke and appropriate programme of used car business development.
• Building the relationships and the strategies required in order to ensure that all used cars returning to the manufacturer and their in-house finance company, (whether that be ex-lease, ex-management cars or cars returning at the end of finance agreements), are supported and retailed through the franchise dealer network.
• In-depth understanding of the power of technology and how it can be harnessed to work in successful synergy with used car operations.
• Commercial expertise in the used car market as a whole including the fragmentation of the used car market, the changing purchasing behaviour of consumers and the strategies required to successfully develop electronic enquiries to successful sales outcomes.
• Construction and delivery of the approved used car warranty and standards programme that is linked to the used car objectives of the manufacturer.
• Complete commercial grasp and understanding of the symbiotic relationship that exists between used car performance and success in the new car market.

Now in reality it will be unlikely that the skills and experience alluded to above will have been nurtured in another role contained within the manufacturer employment structure, so if nothing else, hopefully I have been able to get across the folly of shifting personnel around within the manufacturer organisation, in the hope that someone will trip into success in the role of developing a successful national used car business.

It just does not happen, in the same way that I can’t go on a trip to the Kennedy Space Centre and fly space shuttle; for sure there astronauts who can but despite my willingness to try I lack the experience and training to deliver the objectives, so expecting me to succeed is a highly flawed thought process.

And one last thing, and this is important, if you come to the decision that the professional possessing all of the skills-sets above will be required to develop the long lasting and successful used car business foundations that you are going to need, then think carefully on the commercials. I was asked recently for my input into a package and job description for a high profile role building a used car development programme for a prestige manufacturer; it was a huge job and one that would require a seriously successful, big hitting used car professional to deliver and when we got to the package, I nearly fell off my chair.

The naivety and lack of commercial understanding of the UK used car market place shocked me; I can’t and won’t name names, but we are talking about a well-known automotive industry recruiter and a very successful premium brand manufacturer and between them they were suggesting a package that was going to pay the successful applicant 33% of what the job was actually worth. When we explored this further there was a general reticence to pay the money required because of what it would mean, in terms of other staff employed, but until the sector does away with this mentality and pays what the role commands in the independent and specialist sectors, how does the manufacturer/franchised dealer part of the sector expect to attract and retain top talent; and the top talent that right now, is most critical?

One final thing to ponder; currently used car markets are evolving in Europe and for the first time used car sales volumes are outstripping new car sales volumes in many European markets, and your European counter parts are beginning to understand the urgent business requirement to roll out used car business development programmes to their franchise dealer networks. Now, with no history of franchised dealer used car programmes they do not have a talent pool top draw upon, but guess which country does?

Now we appreciate that finding genuinely successful used car professionals is very difficult for both manufacturers and their franchised dealer networks but luckily help is at hand. If this post has resonated with you and you would like to know more about our used car business development consultancy programmes, because you would like to partner with an organisation of professionals who have faced the challenges of fast paced evolutionary markets and know how to develop a successful and profitable used car dealer network programme on your behalf, (in order to keep your new car and total business objectives growing and on track), then we would very much like to hear from you.

The owners of Autoformance have owned and run successful used car operations and been at the forefront of the development of approved used car programmes for a host of manufacturers. For an exploratory conversation regarding our services and how we can develop bespoke used car business development and consultancy programmes on your behalf, please do not hesitate to contact one of our Used Car Business Development Directors; Andrew Banning at ajb@autoformance.com or Malcolm Thomas at mgt@autoformance.com

Alternatively please feel free to call me on 07796 260261.

For more information about our services please visit our website at www.autoformance.com

Andrew Banning.
Used Car Business Development Director.