A Public Service Announcement For The Owners Of High Performance And Specialist Cars!,,,,,
Those of you who follow my Used Car Business Development Blog will be aware that apart from discussing used car business development strategies, (the articles designed for my manufacturer and franchised dealer audiences), I endeavour to keep the owners of high performance specialist cars abreast of market developments.
In this article I wanted to help that audience by asking and exploring two very important questions (especially in the current market), those below;
What Is Wrong With The Image Above?,,,,,
and
What Is The Point Of Autotrader?,,,,,
Now within this article I want to explore these important questions from the perspective of a private seller (one with a specialist high performance car to sell), not the trade; although the question is still relevant it is a different subject to explore, so not for this article.
Firstly though the screenshot above and some context. The screenshot was taken from an advert on Autotrader on 23rd March; one for a private seller. Now it is important to stress that the purpose of this article is not to explore the advertised price, and I will be offering no advice as to the accuracy of the price when aligned to the vehicle concerned; a picture of which I have taken the decision not to include.
So back to the first question, the answer to which is “Everything!” And the reasons behind “Everything” are very important for private sellers, especially those trying to sell their car via platforms like Autotrader; one that is probably not explored when Autotrader are in the process of taking your money. Nevertheless it is a question the owners of high performance specialist cars should be asking themselves because in this specialised market, I don’t think Autotrader is fit for purpose. In fact the process of listing any car could actually be detrimental to the price you will receive. So let’s explore why.
In order to do so let’s look at the screenshot in close detail and to bring some clarity of market understanding to owners of specialist high performance cars, like the Lamborghini Urus above. Although in truth it could have easily been a screenshot taken from an advert for a Porsche, McLaren, Masertai, BMW M Power Model, Aston Martin, Ferrari, Nissan GTR etc. etc.
To aid in this process and in the interests of clarity, I am going to imagine that the owner of the car concerned did the right thing; contacted me for a consultation call before throwing their money at Autotrader. If they had this is what I would have advised.
At inception I would have pointed out respectfully that it is their car and they are free to proceed as they feel best, but that the decisions they make will have ramifications for the value of the car. So let’s begin by looking at the market place you are entering and the competition you are going toe to toe with; before then trying to read the mind-set of the target audience, an audience pretty similar to themselves.
The first question in this process would be; “Did you purchase the car originally from someone’s driveway? Or did you purchase the car from a Lamborghini franchised dealer/reputable well known independent specialist? In all my years working in this market, no one has ever said from someone’s driveway.
With this in mind my next question would be why not? To which the stock answers usually include some or all of the answers below;
• I wanted the security of buying from a franchised dealer.
• The thought of handing such a large sum of money over to a private individual is ridiculous.
• I wouldn’t know how to purchase a car privately; checking for accident damage, undeclared finance etc.
• There is no protection when buying privately.
• I wanted dealer warranty protection.
• I’m too busy to be driving round the country looking at cars.
• I need finance.
• I needed to part exchange my current car.
At this point I would then explore what the market looks like, how it operates in practice and what it is they are actually trying to achieve. The easiest way to do this? Start by exploring the mind-set of someone looking to purchase a Lamborghini Urus, (or any other specialist high performance car for that matter), identify the type of individual they likely to be and how they are likely to proceed.
Well firstly they are an educated and successful purchaser. A purchaser who will demand a certain level of service from the business they are dealing with; as indeed you did when you purchased the car. Importantly though you will be both too busy and lack the will and experience required, in order to deliver on their purchasing expectations! The Lamborghini franchised dealer will drive the car a customer has an interest in to their office or home by 9:00 AM the following morning. This is the minimum level of attentive service expected by customers spending in excess of £200,000; will you be able to and/or prepared to do this?
Secondly, and this in very important; somebody looking to purchase a Lamborghini will first contact Lamborghini, or search on line. When within 5 minutes they can find a selection of over 15 used Urus’ to explore, (at the first 3 Lamborghini dealers listed – there will no doubt be more), the majority of which were cheaper than the one above. Not that price is the first consideration; this is not how this profile of customer thinks.
They want personal service, attention to detail, peace of mind and everything that that encompasses. They want a purchasing experience that fits around their busy professional schedule; they are purchasing Lamborghini with all that that entails. Purchasing one is a milestone purchase for many and a very special occasion. In effect they want to be loved to death; made to feel special!
They will also probably require access to competitive finance, they will probably have another specialist high performance car to part exchange. All of which is way beyond you as a private seller; somebody similar to them and someone who will not enjoy what you will be required to do to, in order to try and gain the sale; even if that was possible?
What buyers of this profile and in this market don’t do is think; I know I’ll ignore the Lamborghini specialist network and look at the Autotrader, because I don’t feel I need to purchase from an authorised Lamborghini franchise. No, I am going to find the time in my busy schedule to drive around the country with a suitcase full of cash and buy my car from a stranger’s driveway; and for the same price as cars are available for from Lamborghini franchised dealers.
I would then point put one last very important consideration. Even if someone did, do you really want to hand your car over under these circumstances? Are you confident you have the skills required to complete this transaction? Think on that for a moment!
Once the penny has dropped I would then move on to the solutions, albeit accepting that they have diminished their car via the process (above) they have undertaken. Very few professionals operate in the used car market for high performance and specialist cars and understanding how this market works, in practice, is critical during the liquidation process.
In reality the market works in an “Off Market” basis, (involving discretion and excellence in execution), with cars that are not known and/or offered from multiple sources, being the cars that can be liquidated, and for the best prices. Those that have been mishandled via an advertising process on inappropriate portals (Autotrader etc.) get tarnished by this process and become difficult to liquidate.
So in reality thanks to the process you have paid money to Autotrader for, you have achieved nothing other than wasting your money and reducing the value of your car. As someone operating in this market I am totally aware of all the cars available within the market, (especially those being prostituted on advertising portals - that is my job), along with the circumstances surrounding them.
Many of you reading this article will have received approaches from me in the past and had discussions surrounding cars you have for sale. If you haven’t, the most important part of the liquidation process is to have the correct strategy for the process. The first consideration of which must always be availability within the market; this more than anything will dictate the strategy going forward. Unfortunately the Lamborghini Urus marketplace (like the majority of specialist high performance markets), is very small and one that appears to provide purchasers with plenty of choice at the moment.
So despite the hubris in the press, that surrounding the rising values of used cars, I would counsel that the liquidation process will be challenging at the moment, one requiring expertise, discretion and excellence in execution. Anyone wanting to understand why this is the case can feel free to follow the link to my recent article below; written for my Used Car Business Development Blog.
So with all the above now taken on board, where to turn now for the owners of specialist high performances cars, (the marques listed at the start of the article), those looking for the right expertise and experience; that required to facilitate in the immediate liquidation of their car? A process requiring skill, expertise, the utmost discretion and excellence in execution.
Well with cash available for the immediate purchase of the best examples, unrivalled experience in liquidating specialist high performance cars and the contacts base within the professional community, (both franchised dealers and the most knowledgeable specialists), you could contact me for a market consultation. I am not going to promise you for one moment that I work with every car that is offered, or with every owner that contacts me.
In truth I choose to advise and help everyone but only work actively with 10% of the owners who contact me; and their associated cars. Offering immediate cash purchase, (should circumstances dictate), or the facility to act as your trusted conduit to the market, returning the best prices, I am the ultimate solution provider for those looking to dispose of their specialist high performance car.
Please feel free to reach out to me directly via LinkedIn should you wish to arrange a consultation call.
Andrew.
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