A Pivotal Piece Of Used Car Business Development Advice!,,,, And For Free!,,, (Dealers Article)

Of course there is not one simple answer or “Silver Bullet” when it comes to the question of building franchised dealer networks that are successful at retailing used cars, and therefore securing your current trading model. But one issue comes up again and again when we are visiting manufacturers and their franchised dealer networks, when it comes to used car retailing; 

The Need To Invest In People, Not More Technology! 

Now let’s qualify that statement! Of course electronic systems and technology platforms are invaluable, in terms of the collation of customer enquiry data and as a tool to assist in the growth of used car sales, but it is important to remember that electronic or technology based tech systems and platforms do not sell used cars! 

Give us a choice between the best systems and technology based platforms and good people and we’ll choose good people every time! Now we don’t want to hark back to the “Good Ole Days” but it is important to point out that not that long ago we worked in, and owned, used car businesses selling thousands of used cars per annum without technology platforms and electronic systems. No; just enquiry logs, diaries, a pen and a telephone! 

Now we fast forward to today where technology platforms have taken over and are expected to do far more of the selling job for franchised dealers, who by default have then stopped investing in the important roles and skills needed to grow successful sales businesses, and now that times are getting tough the lack of investment in people is about to come back and haunt many, because the current skills shortage can’t be resolved in a couple of months. 

So how did franchised dealers get here? Well it is easy to understand why and how; manufacturers quite rightly embraced the technology platforms that consumers began using when choosing their next car. They identified that some, (but not all, and this is important), customers wanted to do far more of the research process on-line via their smart phone, tablet or computer, especially when it came to the new car purchase. 

Realising that consumer purchasing habits were changing when it came to the new car purchase process, manufacturers realised that they then had the electronic platforms required to drive customers to dealerships and into the arms of the waiting new car sales department; and better than this, franchised dealers then no longer needed highly skilled sales professionals anymore for this trading environment, (or the salaries that went with them), because customers were making more of their purchasing decision from the comfort of their favourite armchair. 

So instead of investing in sales professionals we have the new breed of polo shirt wearing sales consultants who now handle customers who have made 90% of the new car purchasing decision before they even contact the dealership. Now this is not to take away from the skills these professionals have, not at all, and we understand why franchised dealer networks rushed to embrace this employment model; on balance salaries have probably been reduced by 40%. But these professionals are unlikely to possess the skills that most franchise dealers require right now, those needed to protect the future of their business from a platform of successful used car retailing. 

The end result has seen this new car sales department structure being embraced by the vast majority of franchised dealer networks, some of whom are now struggling on the new car sales front, let alone being capable of developing used car retailing growth strategies, just at the moment that they need them the most, and this presents a problem for both the franchised dealers and the parent manufacturers. 

With the traditional new car sales, service and parts trading model under threat for many manufacturers and their franchise partners, many of you reading this will have a business needing to increase profitability in order to protect the long term financial viability of your business. This can only come from developing a successful and profitable used car business and this is where the majority of you have some challenges, because for a period of time approaching a decade most of you have ignored the used car market, having been seduced by the once in a lifetime period of new car retailing, delivered to the market off the back of cheap interest rates and the embracing of PCP by consumers. 

Unfortunately during this period of time the “Bar” for success in the used car market has been raised substantially and for many manufacturers and their franchise partners, there is a lot of work to be done, in order to build the successful used car businesses required to protect both your individual business and your UK trading model. For many senior professionals based within franchised dealer networks reading this article, there is an absolute dearth of used car talent in both your own organisation and within that of your parent manufacturer, so just at the time when the majority of you will require an intensive period of on-site used car business development, combined with the personnel development and training programmes required to develop and support the people tasked with increasing used car performance, there is nowhere to go, in order to obtain this knowledge, either from your parent manufacturer or within your own organisation. 

And access to this knowledge, (used car business development and training), will be vital to the long term success of any used car business development programmes you decide to launch, because to be a success you will need to develop both your used car business and the professionals described in our recent article below; 

Do Successful Used Car Professionals Exist For Franchised Dealers? 

The worst thing you could do now is to think that further technology based systems can get you out of trouble or allow yourselves to be sold another version of the “Emperor’s New Clothes” quick fix solutions to improving used car retailing. There is NO simple answer, it is your decision, but all the posts we see selling “One Trick Pony” solutions are not the answer, (building long term used car success is never about just one single operational issue, regardless of what it is), something we will be covering in our next article. 

Luckily though, when it comes to delivering success in the used car market, 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 are trading in these specialised markets themselves, have faced the challenges of fast paced evolutionary used car markets and know how to develop a successful and profitable used car business 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, been at the forefront of the development of approved used car programmes for a host of manufacturers and more importantly, are still trading and running used car businesses in specialised used car markets. For an exploratory conversation regarding our services and how we can develop bespoke used car business development consultancy and personnel training 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.

A Pivotal Piece Of Used Car Business Development Advice!,,,, And For Free!,,, (Manufacturers Article)

Of course there is not one simple answer or “Silver Bullet” when it comes to the question of building franchised dealer networks that are successful at retailing used cars, and therefore securing your current trading model. But one issue comes up again and again when we are visiting manufacturers and their franchised dealer networks, when it comes to used car retailing; 

The Need To Invest In People, Not More Technology! 

Now let’s qualify that statement! Of course electronic systems and technology platforms are invaluable, in terms of the collation of customer enquiry data and as a tool to assist in the growth of used car sales, but it is important to remember that electronic or technology based tech systems and platforms do not sell used cars! 

Give us a choice between the best systems and technology based platforms and good people and we’ll choose good people every time! Now we don’t want to hark back to the “Good Ole Days” but it is important to point out that not that long ago we worked in, and owned, used car businesses selling thousands of used cars per annum without technology platforms and electronic systems. No; just enquiry logs, diaries, a pen and a telephone! 

Now we fast forward to today where technology platforms have taken over and are expected to do far more of the selling job for manufacturers, who by default have then stopped investing in the important roles and skills needed to grow successful sales businesses, and now that times are getting tough the lack of investment in people is about to come back and haunt many, because the current skills shortage can’t be resolved in a couple of months. 

So how did we get here? Well it is easy to understand why and how; manufacturers quite rightly embraced the technology platforms that consumers began using when choosing their next car. They identified that some, (but not all, and this is important), customers wanted to do far more of the research process on-line via their smart phone, tablet or computer, especially when it came to the new car purchase. 

Realising that consumer purchasing habits were changing when it came to the new car purchase process, manufacturers realised that they then had the electronic platforms required to drive customers to dealerships and into the arms of the waiting new car sales department; and better than this, they didn’t really need highly skilled sales professionals anymore, (or the salaries that went with them), because customers were making more of their purchasing decision from the comfort of their favourite armchair. 

So instead of investing in sales professionals we have the new breed of polo shirt wearing sales consultants who now handle customers who have made 90% of the new car purchasing decision before they even contact the dealership. Now this is not to take away from the skills these professionals have, not at all, and we understand why franchised dealer networks rushed to embrace this employment model; on balance salaries have probably been reduced by 40%. But these professionals are unlikely to possess the skills that most franchise dealers require right now, those needed to protect the future of their business from a platform of successful used car retailing. 

The end result has seen this new car sales department structure being embraced by the vast majority of franchised dealer networks, some of whom are now struggling on the new car sales front, let alone being capable of developing used car retailing growth strategies, just at the moment that they need them the most, and this presents a problem for manufacturers. 

With the traditional new car sales, service and parts trading model under threat for many manufacturers, many of you reading this will have dealer networks needing to increase profitability in order to protect your trading model in the UK. This can only come from developing used car retailing within franchise dealer networks and this is where the majority of you have some challenges, because for a period of time approaching a decade most of you have ignored the used car market, having been seduced by the once in a lifetime period of new car retailing, delivered to the market off the back of cheap interest rates and the embracing of PCP by consumers. 

Unfortunately during this period of time the “Bar” for success in the used car market has been raised substantially and for many manufacturers and their franchise partners, there is a lot of work to be done in order to build the successful used car businesses required to protect your UK trading model. For many senior professionals based at manufacturers reading this article there is an absolute dearth of used car talent in both your own organisation and within franchised dealer networks, so the majority of you will require an intensive period of on-site used car business development, at the businesses of your franchised partners, combined with the personnel development and training programmes required to develop and support the people tasked with increasing used car performance. 

This will be vital to the long term success of any used car business development programmes you decide to launch, because to be a success you will need to develop both the businesses within your franchised dealer networks and the professionals described in our recent articles below; 

Do Successful Used Car Professionals Exist For Franchised Dealers? 

Do Successful Used Car Professionals Exist For Manufacturers? 

The worst thing you could do now is to think that further technology based systems can get you out of trouble or allow yourselves to be sold another version of the “Emperor’s New Clothes” quick fix solutions to improving used car retailing. There is NO simple answer, it is your decision, but all the posts we see selling “One Trick Pony” solutions are not the answer, (building long term used car success is never about just one single operational issue, regardless of what it is), something we will be covering in our next article. 

Luckily though, when it comes to delivering success in the used car market, 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 are trading in these specialised markets themselves, have faced the challenges of fast paced evolutionary used car markets and know how to develop a successful and profitable used car business development and training 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, been at the forefront of the development of approved used car programmes for a host of manufacturers and more importantly, are still trading and running used car businesses in specialised used car markets. 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.

Used Car Business Development And The Best Piece Of Advice I Ever Received!,,,,,,(UK Manufacturers Article)

Like any other professionals who have been lucky enough to have enjoyed a successful career in an industry we love working in, we have many people to thank for the opportunities entrusted to us and those who have mentored us along the way; there is no doubt that just like anyone else lucky enough to be successful in their chosen career, we have benefited from the people we have chosen to work for and alongside. 

During our journeys and in the future, the one piece of advice that all those at Autoformance agree was the best piece of advice they ever received, was this; 

You Will Pay For Your Education One Way Or The Other; Either From Your Mistakes Or As An Important Investment In Yourself,,,, It Is Your Choice!,,,,, 

It is something we have all never forgotten and still remember now, even after decades as successful used car professionals; there is always something you need to learn and never be too arrogant from success to think you do not need to continue to invest in yourself, your education and your business! 

Now this article is not to dig deep into our journey only to highlight that this is the first thing we say to all manufacturers looking to build successful used car business development programmes for their franchised dealer networks; and it is important to point this out, if the standard approach to developing successful used car businesses, (A subject we have covered many times, most recently in our article; Approved Used Car Warranty Programmes Do Not Sell Used Cars!), is to change and manufacturers and their franchised dealers are to make the most of the opportunity that the used car market offers. 

And we have had this conversation a lot this year; 2019 has been a challenging time for many and the trading conditions have led to many manufacturers and their franchise partners enquiring about our services because there is a general trading theme forming this year. It appears that for many, 2018 was an OK year, used car sales grew and there was a lot of patting on backs and saying well done! But now both new car and used car retailing performance is declining and profitability is reducing, so people contact us looking for answers. 

In most cases the answer to any decline in used car sales is simple; no investment was made in the used car business at the end of last year that was going to ensure that the business could receive the dedicated attention required if it is to continue to grow! Sounds simple we know but in reality this statement covers an awful lot, but invariably the situation and the statement are born out of the following used car trading environment for your franchise partners; 

Business A, (shall we say), has no dedicated focus on used car retailing but does some things right and grows when the market conditions are favourable. Now the owners of Business A like this growth, but because they don’t know what they don’t know, they increase the target for next year without an understanding of what will be required, in terms of investment in used car expertise, if the used car business is to continue to grow and move on from its current status as a retailer of part exchanges and ex-demos. 

And herein lies the fatal flaw for Business A, because with no dedicated focus to the business with the most potential to grow, (the used car business), in the past vital used car operational responsibilities have been shared within the current sales team, (all of whom have had no used car business development training), so in reality the used car business has grown in-spite of itself! 

Unfortunately, when trading conditions then batter the used car operation, all the important used car KPIs go into a slide and Business A goes backwards! Unfortunately, (and as much as we are sympathetic to the view that franchise partners should be standing on their own two feet), the owner of Business A will then look to the manufacturer to help in the development of used car professionals and to help educate them in successful used car retailing. Sadly, with no drive to acquire the best used car retailing minds, the manufacturer also has little understanding of what will be required, in order to protect their new car trading model from a foundation of successful used car retailing franchised dealer networks, so is incapable of helping in the way that is required. 

Now this is not uncommon and our first priority for any manufacturer or business owner, is to make them understand the folly in how they have tried to grow used car retailing in the past and in order to achieve this “Light Bulb Moment” we revisit what successful used car retailing involves, and in simplistic terms it involves the following; 

• Being responsible for a very large amount of someone else’s money! 
• Continually investing that money into a heavily depreciating asset class! 
• Dealing in a 60 day investment window of profit opportunity! 

Now of course there is a lot more to successful used car retailing than this, but if you had to precis what the job entails, the statements above should be more than enough to make you realise that the skill-set required is unique and involving a lot expertise. And what’s more challenging for the manufacturer is this; you need a used car professional with this level of used car business acumen in every business in your franchise dealer network! 

Now get people with the ability to deliver the above and you should have a franchise dealer network with used car businesses delivering a profit of £500,000:00 within 2 years, then going on to increase these bottom line profits year on year. Yet no one seems to grasp that, if you want this level of profitability and a franchise dealer network containing used car businesses that will secure the future of your total business model, then investments need to be made in both the business and the people, because guess what, delivering on this is not a part time job that you can learn on a part basis, or grow into. Either at manufacturer or franchised dealer level. 

So why do we see again and again at franchised dealerships, people given the job of growing used car businesses, with no experience and even worse, no training and development plan to enable them to grow into the role and deliver the used car objectives. Well we see it because for your franchise partners, who don’t know what they don’t know by the way, there is no other way and the sad irony is that in all the time we have been developing used car businesses for manufacturers and their franchised dealer networks, we have never seen a business that could not be making £500,000:00 bottom line profit from retailing used cars within 2 years, providing respect is paid to what it is going to take to get there. And from there the sky’s the limit, in terms of where the right people, with the right training and development, can take your used car business. 

However, continue down the current path and the painful lessons in used car retailing will come back to bite you and your franchise partners; and worse than this, after taking the financial hit your franchise partners will be no further along their journey of understanding, so there is a very good chance that they will be doing nothing other than setting their used car business up to fail once again! The worst of all “Groundhog Days!” 

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 are trading in these specialised markets themselves, have faced the challenges of fast paced evolutionary used car markets and know how to develop a successful and profitable used car business development and training 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, been at the forefront of the development of approved used car programmes for a host of manufacturers and more importantly, are still trading and running used car businesses in specialised used car markets. 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.

Used Car Business Development And The Best Piece Of Advice I Ever Received!,,,,,,(UK Dealers Article)

Like any other professionals who have been lucky enough to have enjoyed a successful career in an industry we love working in, we have many people to thank for the opportunities entrusted to us and those who have mentored us along the way; there is no doubt that just like anyone else lucky enough to be successful in their chosen career, we have benefited from the people we have chosen to work for and alongside. 

During our journeys and in the future, the one piece of advice that all those at Autoformance agree was the best piece of advice they ever received, was this; 

You Will Pay For Your Education One Way Or The Other; Either From Your Mistakes Or As An Important Investment In Yourself,,,, It Is Your Choice!,,,,, 

It is something we have all never forgotten and still remember now, even after decades as successful used car professionals; there is always something you need to learn and never be too arrogant from success to think you do not need to continue to invest in yourself, your education and your business! 

Now this article is not to dig deep into our journey only to highlight that this is the first thing we say to all manufacturers looking to build successful used car business development programmes for their franchised dealer networks; and it is important to point this out, if the standard approach to developing successful used car businesses is to change and franchised dealers are to make the most of the opportunity that the used car market offers. 

And we have had this conversation a lot this year; 2019 has been a challenging time for many and the trading conditions have led to many manufacturers and their franchise partners enquiring about our services because there is a general trading theme forming this year. It appears that for many, 2018 was an OK year, used car sales grew and there was a lot of patting on backs and saying well done! But now performance is declining and profitability is reducing, so people contact us looking for answers and in most cases the answer to any decline in used car sales is simple; no investment was made in the used car business at the end of last year that was going to ensure that the business could receive the dedicated attention required if it is to continue to grow! 

Sounds simple we know but in reality this statement covers an awful lot, but invariably the situation and the statement are born out of the following used car trading environment; 

Business A, (shall we say), has no dedicated focus on used car retailing but does some things right and grows when the market conditions are favourable. Now the owners of Business A like this growth, but because they don’t know what they don’t know, they increase the target for next year without an understanding of what will be required, in terms of investment in used car expertise, if the used car business is to continue to grow and move on from its current status as a retailer of part exchanges and ex-demos. 

And herein lies the fatal flaw for Business A, because with no dedicated focus to the business with the most potential to grow, (the used car business), in the past vital used car operational responsibilities have been shared within the current sales team, (all of whom have had no used car business development training), so in reality the used car business has grown in-spite of itself! Unfortunately, when trading conditions then batter the used car operation, all the important used car KPIs go into a slide and Business A goes backwards! 

Now this is not uncommon and our first priority for any business owner, is to make them understand the folly in how they have tried to grow used car retailing in the past and in order to achieve this “Light Bulb Moment” we revisit what successful used car retailing involves, and in simplistic terms it involves the following; 

• Being responsible for a very large amount of someone else’s money! 
• Continually investing that money into a heavily depreciating asset class! 
• Dealing in a 60 day investment window of profit opportunity! 

Now of course there is a lot more to successful used car retailing than this, but if you had to precis what the job entails, the statements above should be more than enough to make you realise that the skill-set required is unique and involving a lot expertise. 

Now get someone with the ability to deliver the above and you should have a used car business delivering a profit of £500,000:00 within 2 years, then going on to increase these bottom line profits year on year. Yet no one seems to grasp that, if you want this level of profitability and a used car business that will secure the future of your business, then investments need to be made in both the business and the people, because guess what, delivering on this is not a part time job that you can learn on a part basis, or grow into. So why do we see again and again, people given the job of growing used car businesses at franchise dealer networks, with no experience and even worse, no training and development plan to enable them to grow into the role and deliver the used car objectives. 

In all the time we have been developing used car businesses for manufacturers and their franchised dealer networks, we have never seen a business that could not be making £500,000:00 bottom line profit from retailing used cars within 2 years, providing respect is paid to what it is going to take to get there. And from there the sky’s the limit, in terms of where the right people, with the right training and development, can take your used car business. 

However, continue down the current path and the painful lessons in used car retailing will come back to bite you, and worse than this, after taking the financial hit you will be no further along your journey of understanding, so there is a very good chance that you will be doing nothing other than setting your business up to fail once again! The worst of all “Groundhog Days!” 

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 are trading in these specialised markets themselves, have faced the challenges of fast paced evolutionary used car markets and know how to develop a successful and profitable used car operation 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 and their franchised dealer networks. More importantly, we are still trading and running used car businesses in specialised used car markets ourselves. 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.

The Biggest And Most Damaging Myth In The Motor Industry?,,,,,(UK Manufacturers Article)

For lovers of film, let us draw on an analogy between what is reality and perception in the motor industry, we call it the “Matrix Moment,” the moment that realisation hits, when you take the “Red Pill” not the “Blue Pill” and make the decision to change knowing full well that it will be hard work, but with the understanding that your previous efforts were in vain, just an illusion. We say this because the most damaging lie told and/or believed in the motor industry is this; “Get The New Car Job Right And The Used Car Job Will Follow!” 

We have heard this countless times over the decades that we have been constructing our used car business development consultancy and training programmes, (as well as running our own successful used car businesses), and let us reassure you of one thing; the more you focus on this “Mantra” the more your business is doomed to fail, maybe not immediately, but probably via a death by a thousand cuts! 

The difference between those succeeding and those failing is a simple one when read in a statement, but involving a totally different focus in the delivery because in reality the statement for success should read “Get The Used Car Job Right And The New Car Job Will Follow!” 

Now we can see our manufacturer based audience reading this open mouthed, in disbelief, that the success of their core business model, their life’s work, can only be achieved if a business they have ignored for too long is a success; and worse than this, a business they have never put any importance on or tried to understand! Now we fully understand how difficult this moment of realisation is and sadly this article is not the platform for us to elaborate on this statement, the process of changing minds is far too great a process to be completed here. We more than anyone realise the journey manufacturers have to go on to grasp this reality and to then share this with their franchise partners, is a difficult one; with short term contracts and a culture that has led to automotive professionals treating pivotal positions as just a stepping stone up the ladder of promotion, no one is being given the time required to change outcomes! 

However, anyone wishing to explore this and discuss how things can change can feel free to contact us, when we would be more than happy to elaborate on this and make time available to discuss how new car performance can been improved and how your new car business model can be secured, from a stable platform; one of used car retailing success. Sadly we realise more than anyone, that not all will grasp this in time and will continue to re-tweak the “Law Of Diminishing Returns” business model; their current new car business model. 

We call it the “Law Of Diminishing Returns” business model because whilst you continue to focus on a very narrow new car business model, selling new cars for ever decreasing and/or no margin, paying franchise dealers out on volume bonus and wondering why they are then offering new car stock to internet based independent new car businesses, the likes of Carwow,,,, (well just when did anyone think that this could lead to a profitable future?), the enlightened businesses are building their future and securing used car market share, knowing full well that at the moment they are lucky; lucky because the majority of you are fighting the wrong fires and leaving the used car market to those who understand how important used car market share will be in determining the winners and losers! 

And they can afford to be more than a little smug in their business because having been on this journey, the journey of being enlightened enough to see that things must change, they have built their used car business and therefore know that they still have years to continue to build their trading advantage. We say years for good reason and because that is probably how long it will take for decisions to be made at manufacturer level and for the investments required to be made; and that most of you probably won’t bother! 

If this post has resonated with you and you would like to take the first step on the journey, (the journey of opening minds to different solutions), or 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 are trading in these challenging used car markets themselves, have faced the challenges of fast paced evolutionary used car markets and know how to develop a successful and profitable used car business development and training 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, been at the forefront of the development of approved used car programmes for a host of manufacturers and more importantly, are still trading and running used car businesses in specialised used car markets. 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.

The Biggest And Most Damaging Myth In The Motor Industry?,,,,,(UK Dealer Article)

For lovers of film, let us draw on an analogy between what is reality and perception in the motor industry, we call it the “Matrix Moment,” the moment that realisation hits, when you take the “Red Pill” not the “Blue Pill” and make the decision to change knowing full well that it will be hard work, but with the understanding that your previous efforts were in vain, just an illusion. We say this because the most damaging lie told and/or believed in the motor industry is this; “Get The New Car Job Right And The Used Car Job Will Follow!” 

We have heard this countless times over the decades that we have been constructing our used car business development consultancy and training programmes, (as well as running our own successful used car businesses), and let us reassure you of one thing; the more you focus on this “Mantra” the more your business is doomed to fail, maybe not immediately, but probably via a death by a thousand cuts! 

The difference between those succeeding and those failing is a simple one when read in a statement, but involving a totally different focus in the delivery, because in reality the statement for success should read “Get The Used Car Job Right And The New Car Job Will Follow!” Now we can see our manufacturer based audience and many of our franchised dealer based audience reading this open mouthed, in disbelief, that the success of their core business model, their life’s work, can only be achieved if a business they have ignored for too long is a success; and worse than this, a business they have never put enough importance on or tried to understand! 

Now we fully understand how difficult this moment of realisation is and sadly this article is not the platform for us to elaborate on this statement, the process of changing minds is far too great a process to be completed here. We more than anyone realise that the journey some franchised dealer based professionals have to go on, in order to grasp this reality and to then go on and make the investments required, is a difficult one. With no fit for purpose used car training and business development programmes being offered by parent manufacturers or the large PLC’s, it is hard for franchised dealer based professionals to gain the knowledge and expertise required in used car retailing strategies, so in effect no one is being given the opportunity to be able to change outcomes! 

However, anyone wishing to explore this and discuss how things can change can feel free to contact us, when we would be more than happy to elaborate on this and make time available to discuss how new car performance can been improved and how your new car business model can be secured, from a stable platform; one of used car retailing success. Sadly we realise more than anyone, that not all will grasp this in time and will continue to re-tweak the “Law Of Diminishing Returns” business model; their current new car business model. 

We call it the “Law Of Diminishing Returns” business model because whilst you continue to focus on a very narrow new car business model, selling new cars for ever decreasing and/or no margin, relying on being paid volume bonuses by the manufacturer and continue, (as many of you do), to offer new car stock to internet based independent new car businesses, the likes of Carwow,,,, (well just when did anyone think that this could lead to a profitable future?), the enlightened businesses are building their future and securing used car market share, knowing full well that at the moment they are lucky. Lucky because the majority of you are fighting the wrong fires and leaving the used car market to those who understand how important used car market share will be in determining the winners and losers! 

And they can afford to be more than a little smug in their business because having been on this journey, the journey of being enlightened enough to see that things must change, they have built their used car business and therefore know that they still have years to continue to build their trading advantage. We say years for good reason and because that is probably how long it will take for decisions to be made at both PLC and parent manufacturer level, and for the investments required to be made; and that most of you probably won’t bother! 

If this post has resonated with you and you would like to take the first step on the journey, (the journey of opening minds to different solutions), or 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 are trading in these challenging used car markets themselves, have faced the challenges of fast paced evolutionary used car markets and know how to develop a successful and profitable used car business development and training 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, been at the forefront of the development of approved used car programmes for a host of manufacturers and more importantly, are still trading and running used car businesses in specialised used car markets. 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.

The Madness Of “All-Auction” Disposal Policies And The Cost That Will Be Paid!,,, (UK Manufacturers Article)

Let’s get a couple of things straight at the beginning of this article; 

• We have no agenda against auctions! 
• “All-Auction” policies are not working! 
• “All-Auction” policies can never work and will always leave you exposed! 
• The auctions will never make a commitment to purchase a car! 
• Your franchise partners only have themselves to blame for their current trade disposal problems! 
• Looking the other way and hoping things will get better is not the answer! 

Now to the crux of this article because the one thing that has struck us as we have delivered used car business development consultancy over the last 6 months, is how many businesses are losing money on trade disposals and have £100’s thousands of pounds invested in trade used car stock at auctions that is going nowhere, losing money and the final irony, they are being charged for storage by the auctions until the car sells. 

As a senior professional based at a manufacturer you may reasonably wonder why this should be of a concern to our manufacturer audience. Well unfortunately this situation is decreasing financial liquidity within franchise dealer networks and restricting their trading options for both new and used car sales, not what you as the parent manufacturer wants to see after the bruising first 6 months of 2019 for many of you. 

Now, we are the first to recommend that, as part of a suite of trade disposal initiatives, the auctions have their value, (we use them ourselves), but the mistake the industry in the UK has made is in being seduced by the auction companies and then rushing to embrace a very narrow option, in terms of trade disposal. 

The consequences of these decisions for your franchise partners, combined with the laziness of those running franchise dealer networks in the UK, (in regard to developing trade disposal networks), were discussed in our recent article The All Auction Policy Of Your Franchise Partners?,,,,, I Bet It Seemed Like A Good Idea At The Time? As much as we don’t want to repeat this article, (those wanting to read the article can follow the link to the article on our Used Car Business Development Blog), the ramifications for the sector on both on a total and macro level, are going to be very costly. 

We can understand how easy it was for your franchise partners to have been seduced by the auction companies and we don’t want to repeat our history lesson here; what we want to explore are the problems that franchised dealer networks and their parent manufacturers now face, in terms of continuing to be able to trade; yes it is that serious for many. The flocking to the auctions as the sole trade route for disposal has removed essential used car trading expertise, trade networks, experience and skill-sets from franchise dealer networks and the folly of previous decisions to embrace all auction policies is coming home to roost. 

As some of your franchise dealer networks are learning, the auctions Never Have and Never Will give a commitment to purchase a car and write out a cheque for that car as an asset! The auctions will only give you a guide to value, (normally readily available from CAP guide), collect the car, valet it and then put it in front of a diminishing audience, to see if they will purchase the car? If someone does, after a period of time ensuring they have the fiscal advantage, they will send your franchise partners a cheque; on top of this, all this time they are invariably charging your franchise partners for storage! We wonder when this trading policy ever became a good idea. 

However, if you are reading this article and you feel this is a “Fit For Purpose” trade disposal solution, then it is not for us to tell you how to run your business or your franchised dealer network, and we wish you both luck because you will need it. With an ever changing market and some very specialised cars being produced, some with no or very fragile used car market demand, (don’t believe the hype surrounding some models and markets), all franchised dealer networks are going to have to be on their toes, when it comes to valuations and avoiding trade losses. 

To survive those responsible for running franchised dealer networks must grasp that any commodity, (a car is no different), is only worth as much as somebody is prepared to pay, and this is key; a guide like CAP is just that, a guide, and auctions will reference the past and having been to them a lot recently, we can promise you that cars are not selling in the volumes required. In the near future your franchise partners will be being offered a lot of cars for which there are only a very small number of specialised buyers, if any at all. This won’t be popular with some of you, but electric cars are a case in point; for the avoidance of any doubt the independent trade do NOT want them! They don’t want them because there is little or no demand for these cars in the used car market from customers, so therefore what are they actually worth? 

The best couple of hours you, or those responsible for running the businesses making up your franchised dealer network, could spend today is to select an electric car, anyone, it doesn’t matter, (select one off the internet if you want), then call the associated franchise dealer networks to try and get a commitment to underwrite and buy the car! This commitment is important because you can’t trade with, and bank opinions! 

I’m sure that the trading reality will shock you and anyone wishing to call us after this exercise for a free consultancy consultation can feel free to do so. And before you think we have a grudge against electric cars, we don’t, we are running used car stock acquisition companies supplying used car stock to independent and franchise dealer networks ourselves; if there was an opportunity and money to be made in this market, trust us, we would be expanding into this market at breakneck speed! 

The reality is that your franchised dealer networks need to build the trade disposal networks required to be able to trade in the markets and trading conditions that are going to be prevailing over the next few years, but this will take time and a lot skill and expertise; the skills and expertise for which are missing from many franchise dealer networks at the moment. 

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, especially our Used Car Stock Disposal Master Class And Mentoring Programme, because you would like to partner with an organisation of professionals who are trading in these specialised markets themselves and have faced the challenges of fast paced evolutionary used car markets, 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. Those wanting to discuss our Used Car Stock Disposal Master Class And Mentoring Programme, and how we can build the used car stock disposal initiatives required, to ensure that your franchise partners can continue to trade profitably whilst others don’t; or wish to have an exploratory conversation regarding our expansive range of 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.

The Madness Of “All-Auction” Disposal Policies And The Cost That Will Be Paid!,,, (UK Dealer Article)

Let’s get a couple of things straight at the beginning of this article; 

• We have no agenda against auctions! 
• All-Auction policies are not working! 
• All-Auction policies can never work and will always leave your business exposed! 
• The auctions will never make a commitment to purchase a car! 
• Most reading this article only have themselves to blame for their current trade disposal problems! 
• Looking the other way and hoping things will get better is not the answer! 

Now to the crux of this article because the one thing that has struck us as we have delivered used car business development consultancy over the last 6 months, is how many businesses are losing money on trade disposals and have £100’s thousands of pounds invested in trade used car stock at auctions that is going nowhere, losing money and the final irony, they are being charged for storage by the auctions until the car sells. 

Now, we are the first to recommend that, as part of a suite of trade disposal initiatives, the auctions have their value; we use them ourselves but the mistake the industry in the UK has made is in being seduced by the auction companies and then rushing to embrace a very narrow option, in terms of trade disposal. 

The consequences of these decisions, combined with the laziness of those running franchise dealer networks in the UK, (in regard to developing trade disposal networks), were discussed in our recent article Your All Auction Policy?,,,,, I Bet It Seemed Like A Good Idea At The Time? As much as we don’t want to repeat this article, (those wanting to read the article can follow the link to the article on our Used Car Business Development Blog), but the ramifications for the sector on both on a total and macro level are going to be very costly. 

Now we understand how easy it was to have been seduced by the auction companies and we don’t want to repeat our history lesson here; what we want to explore are the problems that franchised dealer networks now face, in terms of continuing to be able to trade; yes it is that serious for many. The flocking to the auctions as the sole trade route for disposal has removed essential used car trading expertise, trade networks, experience and skill-sets from franchise dealer networks and the folly of previous decisions to embrace all auction policies is coming home to roost. 

As some franchise dealer networks are learning, the auctions Never Have and Never Will give a commitment to purchase a car and write out a cheque for that car as an asset! The auctions will give you a guide to value, (normally readily available from CAP guide), collect the car, valet it and then put it in front of a diminishing audience, to see if they will purchase the car? If someone does, after a period of time ensuring they have the fiscal advantage, they will send you a cheque; on top of this, all this time they are invariably charging you storage! We wonder when this trading policy ever became a good idea. 

However, if you are reading this and you feel this is a “Fit For Purpose” trade disposal solution, then it is not for us to tell you how to run your business, and we wish you luck because you will need it. With an ever changing market and some very specialised cars being produced, some with no or very fragile used car market demand, (don’t believe the hype surrounding some models and manufacturers), all businesses are going to have to be on their toes when it comes to valuations and avoiding trade losses. 

To survive those responsible for running franchised dealer networks must grasp that any commodity, (a car is no different), is only worth as much as somebody is prepared to pay, and this is key; a guide like CAP is just that, a guide, and auctions will reference the past and having been to them a lot recently, we can promise you that cars are not selling in the volumes required. Soon franchised dealerships will be being offered a lot of cars for which there are only a very small number of specialised buyers, if any at all. This won’t be popular with some, but electric cars are a case in point; for the avoidance of any doubt the independent trade sector does NOT want them! They don’t want them because there is little or no demand for these cars in the used car market, so what are they actually worth? 

The best couple of hours you could spend today is to select an electric car, anyone, it doesn’t matter, (select one off the internet if you want), then call the associated franchise dealer networks to try and get a commitment to underwrite and buy the car! This commitment is important because you can’t trade with and bank opinions! 

I’m sure that the trading reality will shock you and anyone wishing to call us after this exercise for a free consultancy consultation can feel free to do so. And before you think we have a grudge against electric cars, we don’t, we are running used car stock acquisition companies supplying used car stock to independent and franchised dealer networks; if there was an opportunity and money to be made in this market, trust us, we would be expanding into this market at breakneck speed! 

The reality is that franchised dealer networks need to build the trade disposal networks required to be able to trade in the markets and trading conditions that are going to be prevailing over the next few years, but this will take time and a lot skill and expertise; the skills and expertise for which are missing from many franchise dealer networks at the moment. 

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, especially our Used Car Stock Disposal Master Class And Mentoring Programme, because you would like to partner with an organisation of professionals who are trading in these specialised markets themselves and have faced the challenges of fast paced evolutionary used car markets, 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. Those wanting to discuss our Used Car Stock Disposal Master Class And Mentoring Programme, and how we can build the used car stock disposal initiatives required, to ensure that you can continue to trade profitably whilst others don’t; or you wish to have an exploratory conversation regarding our expansive range of 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.

There’s Used Car Growth Inside Your Dealership!,,,, And We’ll Show You How To Find It!,,,,

A bold statement, that’s for sure, but we promise you that we have never walked into a used car business and not found growth potential already within the 4 walls of the business, providing of course you know where to look; and more importantly, you know how to get that business over the line? 

There is no doubt that the 2 most pivotal disciplines in the automotive sector at the moment are used car stock acquisition and used car enquiry management. Used car stock acquisition because without securing your used car stock holding, (both now and in the future), you will have no used car business; and used car enquiry management because without the ability to retail used car stock in the small windows of fiscal optimum opportunity, there will be no viable utilisation of the funds employed to an increased level of used car stock holding. 

Growing used car businesses takes an obsessive eye for detail and level of management in these 2 key operational procedures and with this in mind we would like to introduce all our contacts to both our Used Car Stock Acquisition Master Class And Mentoring Programme and our Maximising Used Car Opportunities To Do Business Master Class. Our Used Car Stock Acquisition Master Class And Mentoring Programme has already been introduced in a previous message so please follow the links to the message to find out more. 

This message is specifically designed to introduce our Maximising Used Car Opportunities To Do Business Master Class; a programme of consultancy delivered by the Directors of our company, who have run some of the most successful used car operations and franchised dealer groups in the country and who are doing this every day for your competitors. A programme delivered on site where we will identify the used car business you are currently losing, not intentionally, but because you don’t where to look! 

During the day on site we will review all areas of used car enquiry generation, recording and management, finding the used car business that is hidden in plain sight and identifying the used car growth that is available to you right now, without investing a penny. This will include a full and in-depth analysis of your current used car enquiry management procedures including; 

• The accurate recording of all used car opportunities to do business.
• Analysis of your current used car enquiry management procedures. 
• Lost leads analysis and how to create both used car sales and opportunities to acquire used car stock. 
• The art of removing used car customers from the market. 
• Understanding the importance of finding customers for used cars; not used cars for customers! 
• The art of selling both physical and virtual used car stock holdings.
• Effective used car enquiry management procedures and ensuring you never lose control of a used car enquiry. 
• “Rinse and Repeat strategies;” database management and the selling of used car stock, to generate more used car stock. 
• Used car enquiry management as a method of used car stock acquisition. 
• The awareness and understanding of multiple streams of used car income potential, and how to ensure that all used car opportunities are maximised.
• Bespoke used car follow up techniques and coaching, to ensure that all used car opportunities to do business are maximised. 
• Used car enquiry management and follow up; “The Importance Of Now!”
• The art of using other peoples’ money and assets to generate used car profit. 

Those wanting to discuss our Maximising Used Car Opportunities To Do Business Master Class, and how we can build the used car enquiry management procedures required, in order to identify & deliver the thousands pounds worth of used car profit you will be missing, please feel free to contact one of our Used Car Business Development Directors in the strictest confidence; 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.