Used Car Business Development

Where Now For Lotus Owners and Values?,,,,,,,,,,,,,, 

Lotus? Always a challenging commodity to predict in terms of an ownership proposition and in terms of future values. 

However, according to an article published recently by Autocar Business, the current owners of Lotus seem determined to shake things up a bit, in terms of retail models and their network; slimming the UK network down to 13 Franchise Dealers and transitioning to an Agency Model with their franchise partners. 

All of which is fine and a strategy (the Agency Model) that I applaud but where does it leave Lotus as an ownership proposition? Well you couldn’t accuse Lotus of lacking ambition; their new planned model range will ensure that they are going “Toe-to-Toe” with some serious competition. Purchasers in this market really are spoilt for choice and Lotus will need to get everything right if they are to secure their retailing future and ensure that their product remains a viable ownership proposition. 

I have commented regarding the announcement in the article written for my Used Car Business Development Blog; 

What Now For Lotus? 

So I won’t repeat myself here. Any Lotus owner (or individual considering purchasing a Lotus) interested in the my thoughts can follow the link to the article itself; and I would recommend reading, as the issues raised in the article itself will directly affect (to the negative or the positive) the values of Lotus cars for a considerable time. 

My worry in the Lotus statement is an apparent over reliance on technology to drive sales when the retailing model is rolled out, not a fit for purpose hybrid retail model; one where the professionals required are leveraging technology to aid the retail proposition. Now of course I have had no input into the strategic retailing plans of Lotus but I know that transitioning to a retail Agency Model will need careful diplomacy with franchise partners. 

Chief of which will be the packages and the remuneration schemes required to ensure that the sales and used car business professionals required (those capable of driving the ambitions and objectives of Lotus to a successful outcome) can be encouraged to join the Lotus project. This will not be guaranteed; I don’t want to get too bogged down on this point in this article, but in the current fragmenting and evolving automotive market in the UK, genuinely successful sales and used car business development professionals will have their pick of opportunities. 

Now I am not privy to the details and do not own a Lotus franchise, so would not be included in any discussions with the manufacturer; that said I do act on behalf of Lotus owners providing market facilitation and conduit services, returning the best values back to Lotus owners looking to sell their vehicle. 

Of all the marques I work with Lotus (and the associated values) is without doubt one of the most challenging. To enjoy strong residuals (therefore acceptable costs of ownership for customers) you need a successful forward thinking used car retailing network, and in my humble opinion this is not the case with Lotus; never has been. This trading reality renders valuations subject to huge fluctuations involving periods of time when lack of liquidity and/or appetite for investment from franchise dealers, renders disposal nigh on impossible. 

Now there are some excellent initiatives contained within the statement from Lotus; what worries me though is going to be a lack of ability to deliver, due to a lack of the professionals required, those alluded to above. At the foundation of any successful delivery of the aims and objectives for Lotus will be very experienced successful used car professionals and sales professionals; and when I talk about used car professionals I talking about those who can deliver on the aims of locking future Lotus used car vehicle parks into a successful used car retailing network. 

Unfortunately I see no evidence of this on the company page for Lotus on LinkedIn and my fear is that Lotus will gamble their future sales success on technology, and a sales process devoid of the trusted sales and used car business development professionals required. Those that owners of specialist high performance cars want to have access to during their investigation and purchasing process. 

I won’t explore highly specialised business strategies here, (this is not the place), only what it could mean for Lotus owners when it comes to an ownership proposition. At the foundations of how much it will cost to own a Lotus will be the effectiveness of the Lotus used car retailing network, as this more than anything will determine the demand for, and the residual values enjoyed by, owners looking to sell a Lotus. 

Now technology platforms cannot drive success in this area; although an important information resource technology platforms do not sell high performance specialist cars. Trusted, experienced and knowledgeable sales professionals sell high performance specialist cars and, as a purchaser in this market, I’m sure you will appreciate that this is the case. 

So if Lotus go down the technology route what does it mean for Lotus as an ownership proposition? Well, and this unavoidable, selling becomes all about price, especially when it comes to used car retailing. Now the benefit of this is that those purchasing and who are market savvy will undoubtedly be able to pay a lot less for their new or used Lotus. 

Sadly these gains will be short lived as this trading reality will effect both liquidity and therefore future values. I have no doubt that a retail system relying on (albeit excellent technology based shop windows) will slow down the rate of sales, both new and used cars. This is a dangerous downward spiral of profitability for Lotus and will translate to a far more difficult disposals landscape for owners. 

So where to turn for Lotus owners 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 unrivalled experience in liquidating specialist cars and the contacts base within the Lotus community, (both franchised dealers and the most knowledgeable Lotus 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 price for your Lotus, I am the ultimate solution provider for those looking to dispose of their Lotus. 

Please feel free to reach out to me directly via LinkedIn should you wish to arrange a consultation call.