Successful Used Car Businesses Aren’t Buying Used Car Stock From Auctions!,,, (UK Dealer Article)

We had an interesting business development meeting recently when the subject of used car margins came up; when we qualified this further it became apparent that across the group concerned, used car margins had been declining and as a consequence they were then looking in the wrong operational areas of their business to try and remedy the situation. 

For sure there were undoubtedly operational areas within the businesses concerned, that when run more effectively, would return more profit but there was one glaring problem that no one within the senior management team had thought of; their used car stock acquisition programmes. 

At this point we wrote a statement on their boardroom wall in 12 inch high letters; “You Make Your Money When You Buy!” 

Unfortunately, when we began to dig deeper, it became apparent that this group had become a “Busy Fool” in terms of their used car retailing activities, running around chasing volumes of used car stock because first and foremost used car spaces had to be filled; after all there’s no profit in empty spaces! And this had resulted in those responsible for used car stock acquisition heading to the easy watering hole of used car stock acquisition, where everyone else who hasn’t been trained in how to acquire more profitable used car stock goes, the auction!  

Now the Automotive Sector has a baffling relationship with the auction companies, something we have covered in many articles, most recently in our article; Your All Auction Policy?,,,,, I Bet It Seemed Like A Good Idea At The Time? But when it comes to used car stock acquisition it is fascinating to see how defensive those running franchised dealerships get, especially when it comes to their vaulted “All Auction Stock Disposal Policy” which we call the “Let’s Give Our Competitors A Business For Free Policy!” 

So during the discussions and explanation that followed, we asked those in the room to explore the following logic, during the qualification process listed below, bearing in mind that this will probably resonate with most of our readership base; 

Our Question: Ok, so let’s not waste time today discussing in forensic detail the rationale behind your All Auction Disposal Policy, but can we ask you two questions; why you made the decision to have an All Auction Disposal Policy and why it is still being adhered to? 

Managing Director’s Answer: Well because we no longer lose money in the trade, in fact the auctions result in us trading at a healthy profit when it comes to trade part exchanges; I have no doubt that the auctions enable us to return the maximum value for trade part exchanges, invariably over the perceived trade value. 

Our Question: So you have no doubt that the auctions return the absolute highest price available, apart from retailing the car yourselves? 

Managing Director’s Answer: Absolutely! Sometimes more than we could return by retailing some cars, because of the unforeseen levels of preparation required for retail! 

Our Question: OK, thank you for that and can we leave the wider trading ramifications aside for now and just stick with your used car stock acquisition programmes; how much of your used car stock comes from auction purchasing? 

Managing Director’s Answer: Well I don’t know! (This is worrying but let’s leave this for now) But if I had to put a percentage on it I would say between 50 and 60% of our used car stock comes from auctions; how else are we supposed to feed such a successful used car business? (This is a moot point by the way, the reason we are there is because they aren’t successful; not in terms of profit, and profit is the only game in town!) 

Our Last Question: OK, thank you for being so candid; in finishing and before ascertaining whether we will be a good fit, in terms of working together, let us ask you all reflect on that statement and can we ask you one more question, just so we have clarity? You called us in today for an exploratory meeting because the money men, (your accountant and more worryingly, your backers), are questioning why there is little return on the investment in your used car stock holding, and because used car profitability is “Tanking!” Does anyone think that the fact that you are acquiring at least 50 – 60% of used car stock from auctions, (an establishment that you have already confirmed returns the highest prices for stock), might have something to do with this lack of profit? 

Managing Director’s Answer: None; silence and the reflective nodding of heads! 

We then went on to discuss the folly of expecting to make increased profits from used car stock acquired from auction houses; for sure it is far easier for Used Car Managers and Buyers to sit at their desk and bid online at auctions, but the folly in this strategy is astounding, and for 2 reasons; 

Market Reality: In the internet age market knowledge is freely available to consumers, they can log on to any used car website and research the used car market, and let’s not forget the retail price of any used car is set by the market; so why would any customer want to pay more for the same car from your business, when compared to one of your competitors? 

The answer is of course that they don’t; so you know your ceiling price for retail, therefore it should be easy to work backwards and know your likely margin before the hammer goes down during the online auction, but yet people still go over this price because there’s no money in empty display spaces; and this is true, but there is less money in overpriced used car stock! 

Operational Reality: Now I can assure you all that we have tested this theory to destruction, for many brands and for many business models and our market research is thus; there is no money to be made by a franchised dealer from retailing cars purchased from auction houses! The main reason for this is that auction houses are where all the untrained and habitually lazy buyers go for their used car stock; and because of this there is then a feeding frenzy to buy cars because these businesses have no other option, when it comes to acquiring used car stock! 

On top of this the descriptions provided by the auction houses, those that you are buying from, are woeful; we have spent hours appraising stock at auctions and assessing profit margins and it is an inconvenient truth that the preparation standards required of your manufacturers approved used car programme will render every car we have ever appraised, none profit making! 

And yet it goes on! When we asked whether the owners of this business had ever investigated how vast sums of their money were being invested, invariably they had not, in fact they had never been to the auction houses supplying vast volumes of their used car stock holding! In this instance we would ask why not? If those responsible for the growth of your pension were losing you money, you would want to know where your pension pot was being invested, of that we are sure, yet most pay no interest in how millions of pounds are being invested in an asset class that only has a 60 day window of profitability. 

So in conclusion; yes there were many operational enhancements that could increase profitability, but these will not make up for the major flaw in their used car business; having no effective programme of used car stock acquisition, therefore resorting to the lazy option, (the auctions), and paying too much money for used car stock. 

Even the best run used car businesses can’t make money if they are paying the highest prices for their used car stock, and that is what you are doing when you purchase used car stock from auctions! So this business was not as profitable as was required, because there was a fatal flaw in their processes for acquiring used car stock; and worse than this is that the situation would not have changed, because no one was looking at this as “The” major flaw in their used car business. 

If you make your money when you buy, (and you do), the only way you can improve margins is by buying used car stock at under market value. The first thing we say to those joining our Used Car Stock Acquisition Master Class and Mentoring Programme, or indeed any of our used car programmes, is that when it comes to retail used car stock, you must develop the skills and initiatives that enable you to acquire the used car stock you require, as cheaply as possible and below market value. 

Until those owning and/or those responsible for running franchised dealerships grasp this, they will continue to be in a “Race To The Bottom” when it comes to used car margins. Used car stock acquisition initiatives lie at the foundations of profitability for all used car businesses and not everyone can be winners moving forward. 

Those wishing to explore our full range of used car business development and personnel training services, and how we can help you to make more money from retailing used cars, need only contact Andrew Banning at ajb@autoformance.com or Malcolm Thomas at mgt@autoformance.com in the first instance, in order to arrange a no obligation exploratory discussion. 

Alternatively please feel free to call me on 0044 7796 260261. 

For more information about our services please visit our website at www.autoformance.com We look forward to hearing from you. 

Andrew Banning. 
Used Car Business Development Director.

Who Should Automotive Manufacturers Never Work With?,,,,,

Someone Who Tells You During Your First Meeting That They Know What You Need! 

This is where most manufacturers go wrong when looking for used car business development partners, they engage with people who tell them at the outset that a particular programme of used car training is the answer; well I’m sorry but this is complete nonsense and folly on behalf of all those involved. It is akin to you going to see your doctor, telling them you feel unwell, the doctor asking you no questions, carrying out no examination, but then writing you out a prescription and bidding you good day. 

Quite rightly you would say that this is ridiculous; how do you know what medicine I require, you haven’t asked me any questions or examined me yet, but yet? And when it comes to building a successful used car programme for your franchised dealer network, (one that will be delivering successful individual used car businesses), it is impossible for anyone to know what you need at first meeting, or in fact, until they have a forensic understanding of your business and the immediate used car business development requirements of the businesses involved in any programme. 

And let’s get another thing straight right now; sadly, you shouldn’t listen to anyone who listens to you telling them that you know what you need either; we don’t want to switch our target audience off right now, but if you knew what was required you would probably be implementing it yourself! 

We have written used car business development plans for, and built hundreds of used car businesses over the years and we would never tell you at the first meeting that we know what you need, because we don’t; and this is what catches most providers of used car business development and training out. Invariably they lead with a single offering, a used car workshop or a new process of enquiry management and listen, this is not to say that they don’t have their place, just that they are flawed in their thinking, (as are you by the way), in thinking that this approach will be the answer! 

We would love to tell you that the fix can be both quick and cheap, but it can’t; and it is not to say that we haven’t delivered used car workshops before, because we have, or that effective enquiry management systems aren’t important, because they are very important; but they are NOT the single answer to successful used car retailing. So if you asked us to deliver a used car workshop we would say yes we will, and not only that, it will be the best used car workshop you have ever seen. But will the attendees retain everything they have been told, know everything required to build a successful and growing used car business, then drive back to the dealership and deliver on that? Of course they won’t. 

So we would qualify this for you and tell you just this; used car workshops are great at exploring the opportunity and opening minds to the rewards on offer; they are a great forum to deliver the benefits of successful used car retailing and to invite inquisitive minds to ask questions in a nonthreatening environment, but if you really think that you can teach someone enough to build a business delivering £500,000:00 net profit within 2 years and then planning for the £Million profit mark within 5 years, well that is for the birds. 

When we are in discussions with potential clients we remind them all that used car retailing is a highly complex business, but one that is quickly summed in this saying; 

“Investing a large amount of someone else’s money in a heavily depreciating asset class; then retailing it within a 60 day window of profit opportunity.” 

So in many ways the professional you employ in this role is akin to the person in charge of the investments for your pension; continually investing money in assets that will make you money; and I’m sure you will agree that this is a highly skilled role? So with this in mind do you really think that the person running your pension investments went to just one pension investment workshop? Of course not! 

And then there is the subject of learning environments and individual learning habits to account for; as Morgan McCall identified when he identified and developed the 70-20-10 learning principal, which is still identified as “The" learning benchmark and method, even today. Although we are all different and learn in different ways and at different speeds, (because we all have different levels of knowledge at inception), McCall identified that “a massive 70% of what we know is learned through hands-on experience, daily tasks and challenges. Just like children learn through play, most adults still learn best by doing.” 

The “10” refers to the 10% of our learning which comes from formal or classroom learning; in other words training courses and the used car workshop which, as much as they are important, and formal learning is required to back up the experience and hands on learning, (70% of our learning), it is how we learn only 10% of what we know. So in essence you are relying on a training day or used car workshop to be the answer when it is proven that at best, it can only amount to 10% of anyone’s learning. 

So we would ask that even if an organisation happens to hit on the core subject and focus for used car growth, (which they can’t), why would you work with an organisation who at the very most, can only deliver 10% of the learning that will be required? And this is before we get involved with who should be attending any used car workshops or training days, but that is for another article. 

So why should you work with us? Well as we have said before we are not for everyone, but if you and your franchise partners want to make more profit from selling used cars, we should be the first people you should think about speaking to. Having spoken we may decide that we are not the right fit for you and this will never be a reflection on you or your business; we are the first to admit that a close business relationship must be built between yourself and any business consultants and mentors you employ. 

Your success will be our success and therefore our complete marketing campaign for the future, so if we don’t feel the commitment will be there from either you or your franchise partners, or that the businesses of your franchise partners will ever be invested in, for used car success, why should we start a pivotal business relationship that is doomed to fail? And if we do work together we will start the process with a small but very important commitment; that of completing a forensic “Warts and All” audit of every used car operation included in any used car business development programme; which will audit every area of the businesses effecting used car profitability, especially the people. 

No one can advise you on how to build any business without knowing the business concerned inside out, even people who have built countless successful used car businesses and developed the associated staff, as we have done, have to start with this process; why? Well because every business is different and therefore has a different growth journey to plan, so without this process we cannot work with you, or your franchise partners, because until this process is complete we won’t know what it is you or your franchise partners need! 

Just like any other business, but especially one that is capable of securing the future of your new car trading model, growing a successful used car businesses will take the right people, the right training on a continual basis and an awful lot of hard work. 

However it can be done; the owners of Autoformance have owned and run successful used car businesses and been at the forefront of the development of approved used car programmes for a host of manufacturers and their franchised dealer networks. Those looking to explore how we can help you and your franchise partners make more profit from selling used cars, need only contact Andrew Banning at ajb@autoformance.com or Malcolm Thomas at mgt@autoformance.com in the first instance, in order to arrange a no obligation exploratory discussion. 

Alternatively please feel free to call me on 0044 7796 260261. 

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

We look forward to hearing from you. 

Andrew Banning. 
Used Car Business Development Director.

Who Should Franchise Dealers Never Work With?,,,,,

Someone Who Tells You In Your First Meeting That They Know What You Need! 

This is where those owning or running franchised dealers go wrong when looking for used car business development partners, they engage with people who tell them at the outset that a particular programme of used car training is the answer; well I’m sorry but this is complete nonsense and folly on behalf of all those involved. It is akin to you going to see your doctor, telling them you feel unwell, the doctor asking you no questions, carrying out no examination, but then writing you out a prescription and bidding you good day. 

Quite rightly you would say that this is ridiculous; how do you know what medicine I require, you haven’t asked me any questions or examined me yet, but yet? And when it comes to building and delivering a successful used car business development programme, it is impossible for anyone to know what you need at first meeting, or in fact, until they have a forensic understanding of your used car business and the immediate business development requirements. 

And let’s get another thing straight right now; sadly, you shouldn’t listen to anyone who listens to you telling them that you know what you need either; we don’t want to switch our target audience off right now but, and let’s be honest, if you knew what was required you would probably be implementing it yourself! 

We have written used car business development plans for, and built hundreds of successful used car businesses over the years and we would never tell you during the first meeting that we know what you need, because we don’t; and this is what catches most providers of used car business development and training out. Invariably they lead with a single offering, a used car workshop or a new process of enquiry management and listen, this is not to say that they don’t have their place, just that they are flawed in their thinking, (as are you by the way), that this will be the answer! 

We would love to tell you that the fix can be both quick and cheap, but it can’t; and it is not to say that we haven’t delivered used car workshops before, because we have, or that effective enquiry management systems aren’t important, because they are very important; but they are NOT the single answer. So if you asked us to deliver a used car workshop we would say yes we will, and not only that, it will be the best used car workshop you have ever seen. But will the attendees retain everything they have been told, know everything required to build a successful and growing used car business, then go back to their office and deliver on that? Of course they won’t. 

So we would qualify this for you and tell you just this; used car workshops are great at exploring the opportunity and opening minds to the rewards on offer; they are a great forum to deliver the benefits and to invite inquisitive minds to ask questions in a nonthreatening environment, but if you really think that you can teach someone enough to build a business delivering £500,000:00 profit within 2 years and then planning for the £Million profit mark within 5 years, well that is for the birds. 

When we are in discussions with clients we remind them all that used car retailing is quickly summed in this saying; 

“Being responsible for investing a large amount of someone else’s money in a heavily depreciating asset class; then retailing it within a 60 day window of profit opportunity.” 

So in many ways the professional you employ in this role is akin to the person in charge of the investments for your pension; continually investing your money in assets that will make you money; and I’m sure you will agree that this is a highly skilled role? So with this in mind do you really think that the person running your pension investments went to just one pension investment workshop? Of course not! 

And then there is the subject of learning environments and individual learning habits to account for; as Morgan McCall identified when he developed the 70-20-10 learning principal, which is still identified as “The” learning benchmark and method even today. Although we are all different and learn in different ways and at different speeds, (because we have different levels of knowledge at inception), McCall identified that “a massive 70% of what we know is learned through hands-on experience, daily tasks and challenges. Just like children learn through play, most adults still learn best by doing.” 

The “10” refers to the 10% of our learning which comes from formal or classroom learning; in other words training courses and the used car workshop which, as much as they are important, and formal learning is required to back up the experience and hands on learning, (70% of our learning), it is how we learn only 10% of what we know. 

So in essence you are relying on a training day or used car workshop to be the answer when it is proven that at best, it can only amount to 10% of anyone’s learning. 

So why work with an organisation who at the very most, can only deliver 10% of what will be required? And this is before we get involved with who should be attending any used car workshops or training days, but that is for another article. So why should you work with us? Well as we have said before we are not for everyone, but if you want to make more profit from selling used cars, we should be the first people you should think about speaking to. Having spoken we may decide that we are not the right fit for you and this will never be a reflection on you or your business; we are the first to admit that a close business relationship must be built between yourself and any business consultants and mentors you employ. 

Your success will be our success and therefore our complete marketing campaign for the future, so if we don’t feel the commitment will be there or that the business will ever be invested in for used car success, why should we start a pivotal business relationship that is doomed to fail? And if we do work together we will start the process with a minimal but important commitment, that of completing a forensic “Warts and All” audit of your used car operation, every area of the business effecting used car profitability, especially your people. 

No one can advise you on how to build your business without knowing your business inside out, even people who have built countless successful used car businesses and developed the associated staff, as we have done, have to start with this process; why? Well because every business is different and therefore has a different growth journey to plan, so without this process we cannot work with you, because until it is complete we won’t know what it is you need! 

Just like any other business, but especially one that is capable of securing the future of your entire business, growing a successful used car business will take the right people, the right training on a continual basis and an awful lot of hard work. 

However it can be done; the owners of Autoformance have owned and run successful used car businesses and been at the forefront of the development of approved used car programmes for a host of manufacturers and franchise dealer networks. Those looking to explore how we can help you make more profit from selling used cars, need only contact Andrew Banning at ajb@autoformance.com or Malcolm Thomas at mgt@autoformance.com in the first instance, in order to arrange a no obligation exploratory discussion. 

Alternatively please feel free to call me on 0044 7796 260261. 

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

We look forward to hearing from you. 

Andrew Banning. 
Used Car Business Development Director.

Why Many Franchised Dealers Are Going To Fail In 2020!,,,,,

In terms of the long term survival of the traditional new car sales, parts and servicing business model, 2020 will be the year of being at the crossroads for many automotive manufacturers and their associated franchised dealer networks; so we thought the best way for our articles to prepare many for the used car business development challenges being faced by the sector this year, is to get everything out in to the open at the start. 

For many running franchised dealer networks reading this, ours will be an antagonistic approach but we are confident enough to offer no apology for any bruising of egos this article may provoke; after all we are not “Vanilla” in our approach so therefore we will not be a good fit for many of you reading this; that said we respect everyone’s right to run their business as they see fit, and within the limit of their own immediate ambitions. 

We know our target audience and the customers we would like to work with and this is liberating for us as a business, just as this enlightened approach should be for everyone reading this who runs their business, because the success of our customers is a shared success and therefore our marketing programme in its entirety. So moving forward, (and as much as we publish content and used business development advice for free), we accept that should our messaging not be losing a proportion of our audience, we will not be encouraging debate strong enough for us to convince our target audience that we are the organisation for them, in terms of our core objectives; “Helping Manufacturers and their Franchise Partners make more money selling used cars!” 

So bearing in mind that we struggle to expand, (we find it harder to find the used car professionals required for our expansion than you do for yours), we know our maximum level of capacity, therefore we are also totally aware of the point when we are “Fully Subscribed” as a business and will never look to risk the quality of our consultancy and training services in the pursuit of the ego that is turnover, thus why some find us politely declining to work on the wrong projects or with those where the right commitment is lacking. 

So where are we starting 2020, in terms of the used car business development content we give away for free in our articles and on Europe’s most read Used Car Business Development Blog? Well we thought it best to advise on the subjects we will be covering this year and, as much as we remain flexible, the lack of change and forward thinking in the sector will dictate that we will be unlikely to deviate from the topics below. 

So let’s start with some feedback and some impactful statements for you all to ponder on; statements that we will expand upon during the on-going publication of our content articles this year. Essentially below is a list of observations as to why many of you will continue to fail, when it comes to protecting your new car sales, parts and service model, as well as the financial stability of your franchised dealership and/or group. 

The statements below are our genuine feedback and based on our experience when meeting representatives from franchised dealer networks in the UK; in doing so we accept that this is a joint journey involving yourselves and the manufacturer you represent, and that there is a lack of commitment from the parent manufacturers perspective as well. Those wishing to see our observations for manufacturers, need only following the link to the article on our Used Car Business Development Blog. 

Those for whom these observations resonate, perhaps seeing themselves in the statements below, but who wish to change their direction of travel and look to expand their used car offering and therefore increase their levels of success, you can feel free to contact either of the founding Directors of Autoformance, Malcolm Thomas or myself, Andrew Banning, when we will gladly discuss the strategies required to meet your used car objectives and to explore whether we are going to be the “Right Fit” in terms of being your used car business development partners on this journey? 

• Too many of you don’t like to be challenged in your thinking; in fact many will not have read to this point. 

• Few realise that the secret to new car success is used car success; so whilst you are being kept awake at night worrying about the fracturing and evolving new car market, you ignore the biggest car market in the UK; the used car market. 

• Worse than this is the fact that this constant focus on a single market place opportunity, (the new car market), has led to a situation where you are actually growing the businesses of disruptors and competitors in the sector. It is a fact that some of the most successful businesses that are actually targeting yours, have been handed their business to them on a plate; by you! 

• Too few franchised dealer networks are set up for used car success, in terms of their personnel and operational structure. Those that accept that the used car business is a completely different business to the new car business aren’t ready to accept that you don’t know what you don’t know, and are still reticent to either invest in their used car education or to employ the professionals with the skills sets required to drive used car success. 

• No one is prepared to pay the used car professionals required what they are worth! We have a suspicion that for most this is because they cannot countenance paying someone more than themselves; this is backward thinking in the extreme and will lead to your demise. 

• None of the PLC’s owning vast swathes of UK based franchised dealer networks, or the associated parent manufacturers, have the programmes of used car business development and/or the personnel training programmes required. 

• Unfortunately for you, those manufacturers that do look to offer used car business development training, look to deliver this as cheaply as possible; to many all their used car development challenges can be solved in one day by someone, (invariably someone who has never grown a successful used car business themselves), standing in a room with their whiteboard. However, you accept this and do nothing to develop yourselves by investing in your own used car education. 

• Many make the mistake of thinking that the same technology and operational set up being leveraged to drive their new car business can then drive their used car business; failing to realise that this is not the case. 

• Too many view problems as hurdles not opportunities and will hide behind geo-political events, (Brexit), before making investment decisions for your business. For sure the negotiation process for our eventual trade deal with the European Union will involve uncertainty, but only for the new car market. The used car market is both fluid and adaptive and you can ALWAYS make money if you are a successful used car retailer; unfortunately the opportunity to take advantage of other peoples’ intransigence will pass you by. 

• Those with successful new car model ranges are sitting back thinking everything will be OK, and not planning for the day when existing model ranges won’t be the shiny new cars on the block! If you want to build the foundations required to secure the financial resilience of your franchise dealership; this can only be achieved from a platform of successful used car retailing. 

Just like any other business, but especially one that is capable of securing the future of your business, growing a successful used car business will take the right people, the right training on a continual basis and an awful lot of hard work. 

However it can be done; the owners of Autoformance have owned and run successful used car businesses and been at the forefront of the development of approved used car programmes for a host of manufacturers. Those looking to explore how we can help you and your franchise partners make more profit from selling used cars, need only contact Andrew Banning at ajb@autoformance.com or Malcolm Thomas at mgt@autoformance.com in the first instance, in order to arrange a no obligation exploratory discussion. 

We look forward to hearing from you. 

Andrew Banning. 
Used Car Business Development Director.

Why Many Automotive Manufacturers Are Going To Fail In 2020!,,,,, (UK Manufacturers Article)

In terms of the long term survival of the traditional new car sales, parts and servicing business model, 2020 will be the year of being at the crossroads for many automotive manufacturers; so we thought the best way for our articles to prepare many for the used car business development challenges being faced by the sector this year, is to get everything out in to the open at the start. 

For many reading this ours will be an antagonistic approach but we are confident enough to offer no apology for any bruising of egos this article may provoke; after all we are not “Vanilla” in our approach so therefore we will not be a good fit for many of you reading this; that said we respect everyone’s right to run their business as they see fit, and within the limit of their own immediate ambitions. 

We know our target audience and the customers we would like to work with and this is liberating for us as a business, just as this enlightened approach should be for everyone reading this who runs their business, because the success of our customers is a shared success and therefore our marketing programme in its entirety. 

So moving forward, (and as much as we publish content and used business development advice for free), we accept that should our messaging not be losing a proportion of our audience, we will not be encouraging debate strong enough for us to convince our target audience that we are the organisation for them, in terms of our core objectives; “Helping Manufacturers and their Franchise Partners make more money selling used cars!” 

So bearing in mind that we struggle to expand, (we find it harder to find the used car professionals required for our expansion than you do for yours), we know our maximum level of capacity, therefore we are also totally aware of the point when we are “Fully Subscribed” as a business and will never look to risk the quality of our consultancy and training services in the pursuit of the ego that is turnover, thus why some find us politely declining to work on the wrong projects or with those where the right commitment is lacking. 

So where are we starting 2020, in terms of the used car business development content we give away for free in our articles and on Europe’s most read Used Car Business Development Blog? Well we thought it best to advise on the subjects we will be covering this year and, as much as we remain flexible, the lack of change and forward thinking in the sector will dictate that we will be unlikely to deviate from the topics below. 

So let’s start with some feedback and some impactful statements for you all to ponder on; statements that we will expand upon during the on-going publication of our content articles this year. Essentially below is a list of observations as to why many of you will continue to fail, when it comes to protecting your new car sales, parts and service model, as well as the financial stability of your franchised dealer networks. 

The statements below are our genuine feedback and based on our experience when meeting representatives from many manufacturers in the UK; in doing so we accept that this is a joint journey involving yourselves and your franchise partners, and that there is a lack of commitment from your franchise partners perspective as well. 

Those wishing to see our observations for your franchise partners, need only following the link to the article on our Used Car Business Development Blog. Those for whom these observations resonate, perhaps seeing themselves in the statements below, but who wish to change their direction of travel and look to expand their used car offering and therefore increase their levels of success, you can feel free to contact either of the founding Directors of Autoformance, Malcolm Thomas or myself, Andrew Banning, when we will gladly discuss the strategies required to meet your used car objectives and to explore whether we are going to be the “Right Fit” in terms of being your used car business development partners on this journey? 

• Too many of you don’t like to be challenged in your thinking; in fact many will not have read to this point. 

• Few realise that the secret to new car success is used car success; so whilst you are being kept awake at night worrying about the fracturing and evolving new car market, you ignore the biggest car market in the UK; the used car market. 

• Worse than this is the fact that this constant focus on a single market place opportunity, (the new car market), has led to a situation where you are actually growing the businesses of disruptors and competitors in the sector. It is a fact that some of the most successful businesses that are actually targeting yours, have been handed their business to them on a plate; by you and your franchise partners! 

• No manufacturers appear to be set up for used car success, in terms of their personnel and operational structure. Those that accept that the used car business is a completely different business to the new car business aren’t ready to accept that you don’t know what you don’t know, and are still reticent to either invest in their used car education or to employ the professionals with the skills sets required to drive used car success. 

• No one is prepared to pay the used car professionals required what they are worth! We have a suspicion that for most this is because they cannot countenance paying someone more than themselves; this is backward thinking in the extreme and will lead to your demise. 

• No manufacturers have the programmes of used car business development and/or the personnel training programmes required by their franchise partners. 

• Those manufacturers that do look to offer used car business development training then look to deliver this as cheaply as possible; to many all their used car development challenges can be solved in one day by someone, (invariably someone who has never grown a successful used car business themselves), standing in a room with their whiteboard. 

• Many make the mistake of thinking that the same technology being leveraged to drive their new car business can then drive their used car business; failing to realise that it is the wrong tool for the job. 

• Too many view problems as hurdles not opportunities and will hide behind geo-political events, (Brexit), before making investment decisions for your business. For sure the negotiation process for our eventual trade deal with the European Union will involve uncertainty, but only for the new car market. The used car market is both fluid and adaptive and you can ALWAYS make money if you are a successful used car retailer; unfortunately the opportunity to take advantage of other peoples’ intransigence will pass you by. 

• Those with successful new car model ranges are sitting back thinking everything will be OK, and not planning for the day when existing model ranges won’t be the shiny new cars on the block! If you want to retain a continual new car presence you will need to adapt and protect the financial resilience of your franchise dealer network; this can only be achieved from a platform of successful used car retailing. 

Just like any other business, but especially one that is capable of securing the future of your new car trading model, growing a successful used car business will take the right people, the right training on a continual basis and an awful lot of hard work. 

However it can be done; the owners of Autoformance have owned and run successful used car businesses and been at the forefront of the development of approved used car programmes for a host of manufacturers. Those looking to explore how we can help you and your franchise partners make more profit from selling used cars, need only contact Andrew Banning at ajb@autoformance.com or Malcolm Thomas at mgt@autoformance.com in the first instance, in order to arrange a no obligation exploratory discussion. 

We look forward to hearing from you. 

Andrew Banning. 

Used Car Business Development Director.