Used Car Business Development

Used Car Stock Acquisition 101!,,,,,,,,,,,,,,, 

A short article today and one linked to the disciplines, advice and “One Liners” explored during my discussions with franchised dealers and used car businesses; the discussions surrounding my used car stock acquisition programmes, synergies and the potential to work together. 

Invariably during these discussions about how the used car stock acquisition profession and landscape has evolved (leaving franchised dealers and independent used car businesses without the skills and experience required to secure profitable used car stock holdings) many gems of strategic used car stock acquisition and business development advice get mentioned and discussed; so much so that I have decided to run a series of articles exploring them all. 

However, before that I thought it prudent to publish a list of some of the Used Car Stock Acquisition 101 statements, disciplines and observations; little gems if you like. I refer to them as the “Humbling List” or the list of disciplines and advice your business must take on board and heed; it includes the following. 

• If you are doing the same thing as everyone else, then stop! 
• If you are doing what everyone else is doing, then it can only be about price! 
• There is no such thing as an unprofitable acquisitions opportunity, just poor acquisitions professionals. 
• If you don’t know why you are good at something, you are not good at it! 
• If you are failing, it will be because of your belief culture! 
• There’s a big difference between wanting things to get better and committing to make things better! 
• The business that controls access to used car stock, controls access to used car customers! Customers do not need to “Like” your business, but they do need to Trust it! 
• You lock in profit margins during an effective and professional acquisitions process! 
• Your biggest used car challenge is not selling the right stock, it is acquiring the right stock! 
• The successful used car stock acquisitions professional knows how to ensure that they never pay market value for used car stock! 
• Successful used car stock acquisitions professionals are not buying used car stock from auctions! 
• Be warned; if you are sending used car stock to auctions or making it available to third party tech sites, then you are an unnecessary middleman. 
• Selling is not the most important discipline within your business, buying is! 
• Used car stock acquisition is a people business, not a car business! 
• Your business must NEVER be not buying! 
• Never not buying is a financial structures and people business, one aligned to a successful used car business! 
• The right professionals will take your business further than good tech! 
• The “Just In Time” used car stock acquisition model is an unprofitable and broken model! When it comes to genuine used car stock acquisitions professionals, you have only 2 options; learn to attract the talent you require to your business, or to develop that talent! 
• Developing the used car stock acquisition skills required is impossible if you don’t know what you are teaching! 
• There is no such thing as the used car market; know your used car market and know your customers. 
• Success will involve building a used car stock acquisition business, a separate business that is aligned to your current business! 
• You can have the best sales operation imaginable; if you don’t know how to secure used car stock holdings it will all be for nothing! 
• Stop worrying about the competition; choose to identify and leverage your trading advantages! Credibility comes from the questions you ask, not the answers you give! 

So in the used car markets to come, those with used car vehicle parks of 680,000 less vehicles, (in terms of available stock), my question to everyone would be; how well set up is your business to survive? In truth the vast majority aren’t. It is the inconvenient truth of our times that you can have the best people and operational procedures imaginable, but if you don’t have the professionals required to secure used car stock holdings in the volumes and at the prices required to remain profitable? Well then it is all going to be for nothing. 

I have observed how the used car stock acquisition landscape has evolved during the last 12 months and I promise the vast majority reading this, you will not be ready for how the acquisitions landscape has evolved; to the point where all those relying on the initiatives and skills of the past will be left floundering. For these businesses, those reactionary businesses purchasing stock on a hand to mouth basis and in the moment, (what we call the “Just In Time” market), it will be a challenge to acquire used car stock at prices (and in the volumes) that ensure your business remains profitable. 

But there will be others, albeit very few, those who (like me) spent the lock downs monitoring the market and rewriting programmes of used car stock acquisition from the ground floor up, in order develop the programmes and initiatives required to ensure that used car stock holdings are being secured for future markets right now. And via campaigns and initiatives that will leave the competition with years of work to catch up; even if they can find the skills required already within the four walls of their business? 

The used car stock acquisition skills now required to secure success can’t be taught via any training programme, it is too fast moving a discipline and covering too vast an array of skills-sets. So in reality successful used car stock acquisition now necessitates an environment of strategic alliances via commercial arrangements. The market value of the skills involved would also make it too financially restrictive to employ genuinely successful used car stock acquisition professionals; there are too few of us, so for the moment those days are gone. 

That said I am working with 2 businesses building and delivering the used car stock acquisition programmes they require; having made a commitment to work with three at all times. So for those grasping the seriousness of their current situation and wanting to take immediate action, I will be working with another business over the next 12 months, in order to deliver the used car stock acquisition expertise and initiatives required, for that business to survive and prosper in the used car market to come. 

Should you wish to explore synergies and the potential to collaborate in this regard, please do not hesitate to contact me via LinkedIn, so we can arrange a mutually convenient time for an exploratory call. 

Andrew.