Used Car Stock Acquisition 101,,,, 

When It Comes To Successful Used Car Stock Acquisitions Professionals, You Only Have Two Options,,,,,, 

 Learn To Attract The Talent You Require To Your Business, Or To Develop That Talent! 

Well, as I continue to navigate the palpable sense of panic within some of the businesses I am in discussions with, it is interesting to continue to reflect upon how the challenges surrounding reduced used car vehicle parks are being approached by the sector as a whole, and individually. 

An issue that leads me nicely on to the next of the original used car stock acquisition “One Liners” to be explored in this weeks’ article; those originally outlined in the article below, which was written for my Used Car Business Development Blog; 

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

In reality very few used car businesses, whether they be specialist independent used car businesses or those within a franchised dealer operation, are prepared for the challenges that lie ahead and most will look at the challenges covered within the heading for this article and make the wrong call; why? Well because they will probably be looking for clues in the past and not looking for them in the future. 

When it comes to acquiring used car stock from the used car vehicle parks coming from 2023 onwards, all used car businesses can do one of two things; follow the herd or look to do things differently and in-line with what is required in the acquisitions landscape of today. In other words they can choose to follow the masses or choose to observe the masses and do the opposite. 

Regardless of the route taken all used car businesses will need to ensure that the talent and expertise required either already resides within their business, is being developed, or that access to these talents and expertise has been secured via strategic alliances with the professionals and organisations required. 

Unfortunately though, for those choosing to develop the talent required, when it comes to developing that talent, it is important to remember one very important thing at all times; 

Developing The Used Car Stock Acquisition Talent And Expertise Required Is Impossible If You Don’t Know What You Are Teaching! 

 And this is the problem most used car businesses will be facing. Now for some, those looking for answers in the past, they will think that all is well, they know who they need to target the markets from where they have always got their used car stock. This is what I call the Sam Allardyce theory; that of using the same old fashioned approaches for acquiring used car stock holdings and relying on the same old faces; the “Well Look What He Did At Bolton” thinking. 

And that’s fine, the problem is that there is a new breed of used car stock acquisition professionals out there; more Pep Guardiola, Jurgen Klopp or Antonio Conte than Sam Allardyce, and they are approaching the securing of retail used car stock holdings from a far more radical and lucrative perspective. And it is unlikely that you will even know who these professionals and/or their organisations are, because you will not see them where all the Sam Allardyce’s go for their used car stock holdings; the auctions etc. 

They don’t speak to the same old faces in the trade either, because they know there is no money to be made from moving, shaking and operating within these circles. They have either come from different acquisitions markets and know how to attack establish markets, or are from the automotive sector with experience in developing used car businesses, but with minds open to different thinking; knowing that there must be a better way of securing used car stock for retail profit and then discovering that they were right, there is. 

So all used car businesses have a choice going into 2023; which will be the year that the sector first faces the plague of challenges of drastically reduced used car vehicle parks, those caused by the serious downturn in new car registrations endured by the industry from 2020 onwards. Either more of the same or opening minds and deciding to do things differently; observing the masses and doing the opposite! 

And for some, those prepared to open their minds, there is a chance; not that they can learn these strategies for themselves in the time available, but that they can look to secure access to the professionals required in order to acquire profitable used car stock holdings in the volumes required. The professionals who know how to target established markets with ease and with the messaging required to secure access to the most lucrative used car stock holdings; the used car stock holdings that the Sam Allardyces of the world will never even know exist. 

Now I appreciate that for 95% of those reading this, the initiatives mentioned above are fanciful; I experience this a lot, sadly I can’t train or work with hostages. For the remaining 5%, those curious, ambitious, capable of opening their minds and taking their strategic used car business development thinking on the journey required, I would say this. 

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

I have observed how the used car stock acquisition landscape has evolved during the last 12-24 months and I promise the vast majority reading this, you will not be ready for how the acquisitions landscape has evolved. To the point where (as mentioned above) all those relying on the used car stock acquisition initiatives and skills of the recent past, will be left floundering. 

For these businesses, those reactionary businesses still only purchasing stock on a hand to mouth basis and in the moment, (the “Just In Time” market), it will become a challenge to acquire used car stock at the prices (and in the volumes) that ensure your business remains profitable. 

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

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

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

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

Andrew.

On Average BMW Franchised Dealers Have All Lost £543,000 In 2023!,,,,,, 

I won’t use this article to re-hash content from articles of the recent past, even though this article continues the thread explored in the previous articles written for my Used Car Business Development Blog. 

No let’s cut straight to the chase; on average, every BMW franchised dealer in the UK has a £543,000 hole in their accounts for 2023. On top of that, those needing to read the rest of this article to understand why, will be unlikely to remedy the situation! 

So let‘s expand upon the heading and understand why the statement is being made. To do so we have to go back to 2020 and compare it to 2019; in terms of new car registrations. The reason for doing this is to measure the likely used car vehicle parks coming in 2023, a number dictated (in the main) by new car registrations 3 years earlier; 2020. 

Now this is not an exact science, but it is an accurate barometer of the likely used car vehicle park available (plus or minus) and for BMW franchised dealers the picture is looking challenging and here’s why. Apparently in 2019 BMW registered 169,753 new cars in the UK; a number reduced by approximately 32% in 2020 to 115,500. 54,253 fewer new car registrations and again a number that flows straight through to the used car markets of 3 -4 years’ time. 

If we assume (and we can’t) that they all return to the market after 3 years and to the BMW franchised dealer network (the majority will return to the market but not all to the BMW franchised dealer network), that equates to an average of 362 less used cars for each of the 150 BMW franchised dealers in the UK. When compared to the used car vehicle park generated by new car registrations in 2019. 

Assuming (again this is flawed but bear with me) that BMW franchised dealers are successful used car retailers making £1,500 RGP Per Unit; well at £1,500 RGP Per Unit that estimated reduction in the size of the used car vehicle park for 2023 equates to an average hole in the accounts of £543,000; for every BMW franchised dealer in the UK. Got your attention yet? 

So, bearing in mind that this is an issue for the sector as a whole, (I am just using BMW as an example), what would I be saying if I was in exploratory discussions about working with a BMW business and becoming responsible for constructing and delivering their car stock acquisition programmes. Those that will be required to ensure that the used car business continues to grow and is not one of the inevitable victims of the market to come? 

Well, I would go straight to the owner(s) of the business and although I can’t expand upon the measures required to ensure that the business is successful, my initial conversation would involve the following statements; not all of which will be comfortable listening, but in brevity; 

1. The harsh reality is that the size of the used car vehicle park has shrunk by 32%; that is a very big number! 

2. Unfortunately, the number of BMW franchised dealers has remained the same; so you will all be fighting over the same reduced used car stock holding. Not every business will survive this “Darwinian” culling process! 

3. Luckily, very few (if any) have the used car stock acquisition skills required to be successful, so there is hope. 

4. However, delivering on that hope comes at a price. But we will start by ensuring that we have the used car stock acquisition initiatives and programmes in place to protect our used car vehicle park; that supplied by the business from new. 

5. Once secured things get a little sensitive. From these foundations the only way the business has of expanding its used car stock acquisition volumes and therefore used car retailing profits, is by acquiring used car stock from the customers of your fellow franchise holders. 

6. If you want to be successful (and I do) I would advise that moving forward, the business adopts a used car stock acquisition policy of “Observing The Masses And Doing The Opposite!” 

7. We will not follow the “Sheep!” Those businesses acquiring used car stock on a hand to mouth basis in what I call “The Just In Time Market” from auction houses and by copying the trade or We Buy Any Car. There is no money in this and we will elevate the business above those operating in this way; something they only do because they possess no used car stock acquisition expertise. 

8. With this in mind, I will put in place the specialised and highly effective used car stock acquisition programmes and initiatives required, in order to target the customers of your fellow franchise holders directly; thus securing the associated used car stock holding. 

9. This will be successful but very unpopular with your fellow franchise holders, so expect the phone to ring! 

Upon finishing, there is one very simple question I would ask; So Do You Want To Be A Winner In This Market Or Not? 

So for those owning and/or running a BMW franchised dealership (or any used car business for that matter – you all have the same challenge) and is curious, ambitious, capable of opening their minds and taking their strategic used car business development thinking on the journey required, I would say this. 

In the used car markets to come, those with used car vehicle parks of 680,000 less vehicles, (in terms of available stock), how well set up is your business to survive? 

In truth the vast majority aren’t. It is the inconvenient truth of our times that you can have the best people and operational procedures imaginable, but if you don’t have the professionals required to secure used car stock holdings in the volumes and at the prices required to remain profitable? Well it is all going to be for nothing. 

I have observed how the used car stock acquisition landscape has evolved during the last 12-24 months and I promise the vast majority reading this, you will not be ready for how the acquisitions landscape has evolved. To the point where (as mentioned above) all those relying on the used car stock acquisition initiatives and skills of the recent past, will be left floundering. 

For these businesses, those reactionary businesses purchasing stock on a hand to mouth basis and in the moment, (the “Just In Time” market), it will be a challenge to acquire used car stock at prices (and in the volumes) that ensure your business remains profitable. 

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

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

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

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

Andrew.

Used Car Stock Acquisition 101!,,,,, 

Success Will Involve Building A Used Car Stock Acquisition Business; A Separate Business That Is Aligned To Your Current Business! 

Well, as I continue to navigate the palpable panic within some of the businesses I am in discussions with, it has been interesting to continue to reflect on how the challenges surrounding reduced used car vehicle parks are being approached by the sector as a whole, and individually. 

An issue that leads me nicely on to the next of the original used car stock acquisition “One Liners” to be explored in this weeks’ article; and those originally outlined in the article below, which was written for my Used Car Business Development Blog; 

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

In truth, exploring all the operational issues covered in the title for this article in finite detail is impossible; every business is different, so will have to build the acquisitions business that is commensurate to their trading reality, their objectives and one that evolves year on year as the business grows, thus the objectives change. 

That said there are some basic principles that need to be understood and adhered to at all times, if the building of your used car stock acquisition business is to be successful; and rest assured, you will need this business, as the used car stock acquisitions landscape continues to evolve and become more competitive. 

The reality is that every used car business (including my own) faces the “Perfect Storm” of both vastly reduced used car vehicle parks and more competition for said used car vehicle parks. The astute amongst you will realise that carrying on doing exactly the same is the “Law Of Diminishing Returns” of used car stock acquisition; for sure you mustn’t drop the programmes and initiatives that have got you to here, (they still have their place), but you can’t rely on them (solely) to take you into the future either. 

Regrettably there are no easy answers either; what you have to build now is your business that prospects for acquisitions opportunity. Now I readily accept that “Prospecting” is the dirtiest most unpopular word in the world of used car stock acquisition, but it is paramount! It is the discipline that when delivered on successfully, is the only initiative that will provide your business with both volume and choice! 

However, it is also a business that operates in way that is at complete odds with how the sector (as a whole) operates right now, in terms of used car stock acquisition. In the main, used car stock acquisition is a business that thrives on immediacy and instant gratification; we need stock so I have bought stock – not always the right stock – the panic to fill spaces. 

This develops a certain mind-set and approach and in reality there’s only a very small minority of acquisitions professionals and businesses with the nerve, confidence and ability, that are able to operate successfully in a trading environment of delayed gratification; why? 

Well because it requires the ability to pay a short term price to be rewarded in the future and this counterintuitive. In reality, and I see and experience this mind-set challenge a lot in my discussions in many commodities acquisitions markets (not just the automotive sector), one of the main reasons why used car businesses suffer with their mind-set and approach in regard to prospecting, is this. They don’t realise that a business that prospects for continual and profitable used car stock acquisition opportunity, reaps the rewards tomorrow, not today! 

So without further ado, please find below some advice on the issues to consider when building your successful used car stock acquisitions business; 

1. Every business is in a unique position; build the used car stock acquisitions business you require. 

2. Your used car stock acquisitions programme should (at inception) be directly aligned to your used car retailing objectives. 

3. Different professionals possessing different skills are going to be required; a traditional buyer can be, but doesn’t have to be, one of them. These professionals are hitherto unknown to the sector as a whole, but will include the professionals able to build and leverage targeted data bases, leverage content, as well as social media and technology, in order to drive your acquisitions opportunities. 

4. Build the business capable of constructing the used car stock acquisition initiatives required to drive targeted used car stock acquisition opportunities to your business. 

5. Develop your understanding of your target market, geography and how your target customers operate. Once understood you can ensure you target both your target market and customers in the right way, with the right message. 

6. Understand their pain points and how to leverage them; it can be, but is not always, about price. 

7. Appreciate that this business within your business, is about to spend 95% of its time earning the right to then do what it is good at! 

8. This business must know how to target for used car stock acquisition cyclically, in line with your used car market. 

9. This business should start with ring fencing the used car vehicle park that you already have, the customers with whom you have already built trust; existing customers. 

10. Appreciate that continued used car acquisition expansion will mean building the campaigns required to take the business off your fellow franchise holders. 

11. Success will come from observing the masses and doing the opposite; by thinking outside box and laterally. 

12. The professionals running this business will not follow the herd; they know that the lion does not lie awake at night worrying about the opinions of the sheep! 

13. Be warned; sooner or later being different scares people! 

Now I appreciate that for 95% of those reading this, the operational issues above are fanciful; I experience this a lot, sadly I can’t train or work with hostages. For the remaining 5%, those curious, ambitious, capable of opening their minds and taking their strategic used car business development thinking on the journey required, I would say this. In the used car markets to come, those with used car vehicle parks of 680,000 less vehicles, (in terms of available stock), my question would be; how well set up is your business to survive? 

In truth the vast majority aren’t. It is the inconvenient truth of our times that you can have the best people and operational procedures imaginable, but if you don’t have the professionals required to secure used car stock holdings in the volumes and at the prices required to remain profitable? Well it is all going to be for nothing. 

I have observed how the used car stock acquisition landscape has evolved during the last 12-24 months and I promise the vast majority reading this, you will not be ready for how the acquisitions landscape has evolved. To the point where (as mentioned above) all those relying on the used car stock acquisition initiatives and skills of the recent past, will be left floundering. 

For these businesses, those reactionary businesses purchasing stock on a hand to mouth basis and in the moment, (the “Just In Time” market), it will be a challenge to acquire used car stock at prices (and in the volumes) that ensure your business remains profitable. 

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

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

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

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

Andrew.

Used Car Stock Acquisition 101!,,, 

Successful Used Car Stock Acquisitions Professionals Never Pay Market Value For Used Car Stock! 

In this, the 5th article in the series exploring used car stock acquisition best practice and principles, I wanted to explore some of the most contentious issues, those contained within the heading and inextricably linked to the statement below;

You Lock In Profit Margins During An Effective And Professional Acquisitions Process! 

Now in saying this I readily accept that 95% of those working within the automotive sector will scoff at the heading; they will say it can’t be done, but these people aren’t my audience, they represent “The Market” not “My Market.” So to the remaining 5%, those curious and representing “My Market,” I promise it can be done, I have been doing it for 20 years. So keep reading. 

Now in discussing the principles contained within the heading, it is important to understand one very important thing; when it comes to successful used car retailing you make your money by locking in profit margins when you are buying, not when you are selling. Selling (although important) is the process of crystallising all your acquisitions expertise and the profit locked in during the acquisitions process. 

However, (and I add the very important caveat), in order to deliver on this you must have the expertise, commercial acumen and the people skills to know how to put yourself in the position of NOT having to ever pay market value for used car stock holdings. This is paramount, but in reality very few have this this expertise. 

Acquiring assets for stock and then retailing for profit, (any asset not just used cars), is a fast-paced, cutthroat and dirty business; and that’s just the customers. I promise everyone reading this that when you involve cars and money, (especially other peoples’ money), you will see the worst of people and behaviour. So think on that before making any decisions on who to employ or who to partner with, (in the delivery of your used car stock acquisition objectives), because this is the world they have got to survive and thrive within, on your behalf. In reality very few can “Cut The Mustard!” 

Successful used car stock acquisition requires many skills and a multitude of initiatives, but at the foundation of everything must be the absolute determination to pay as little for stock as possible; in fact it should be the “Raison D’etre” of every used car stock acquisitions professional. From here success then hinges on the experience and expertise required to be able to deliver on this, and on scale; success here though, will not happen by accident. 

It is the professional ability to create the opportunities funnel required to ensure your business doesn’t have to operate in what I call the “Just In Time” acquisitions market; invariably best summed up by going to auction houses or outbidding We Buy Any Car for used car stock. In reality success in the stock acquisitions world is best defined by; 

Observing The Masses And Doing The Opposite. 

And by never resting on your laurels, working hard and continually evolving, because any success this year, will not be guaranteed for next year; not unless you are continually at the leading edge of the stock acquisition community. 

However, this absolute determination to pay the least amount of money for every car, should not mean that you operate in an unprofessional manner; absolutely not. At its core the business of acquiring used car stock is a people business, not a car business; it is a business of building relationships based on trust and respect. So if you are incapable of moving within the social circles required and of building relationships of this ilk, in order to acquire used car stock at below market value, then unfortunately you will never be a successful used car stock acquisitions professional. 

Do not (as many seem to do) see yourself as an estate agent either; whose job it is to get the maximum value for their client’s asset, because the reverse is true. You are the complete opposite to this; you are investing money into an asset on the basis of a financial return, and where the risk and the reward is all yours. Your absolute goal should be to pay as little for used car stock as possible! 

Profit is not (nor should it be) a dirty word; if you are stock acquisitions professional you should be remunerated and rewarded for your ability to acquire used car stock at both below market value and on a continuous basis. If you are currently working in an environment where this is not the case then my advice would be to move on; this will not be the business to be working for/or with in the future. 

Now I understand that for many of you reading this article, it will present an ethical dilemma; and I understand why for many franchised dealers this will cause unease. To which I say you have a choice; carry on doing the same, which will lock in terminal decline, or look to open your mind to doing things differently. 

But I can promise everyone one thing; if your used car stock acquisitions initiatives consist of you running around on a daily basis, looking for used car stock to purchase on a “Hand to Mouth” basis and buying in the “Just In Time” used car market; then you are going to have to pay more money than anyone else for stock in order to purchase it. Now this will be many things; profitable will not be one of them! 

And just this scenario, is what many inexperienced used car businesses have been doing during the last 12 months. Those pumped up and full of hubris, all the hubris peddled by those with no experience of purchasing used car stock for retail profit; auction houses, CAP HPI, Autotrader etc. It should come as no surprise that you are still gazing upon this (now) loss making used car stock holding, in some cases 6-8 months after it was purchased; along with the loss making grind of retailing this stock holding and releasing the capital employed. 

And it all could’ve (and should’ve) been so different! Sadly though for many this has been unavoidable; some franchised dealers have morphed into non standalone businesses now. They are businesses bereft of the talent required and incapable of building their own successful used car business model. Overly reliant on 3rd party businesses to help them and/or tell them what to do; with a list of shame that is endless but includes BCA Auctions, Cinch, Carwow, Independent Leasing Companies, We Buy Any Car, Autotrader and many others. 

Now as I stated at the start of this article, I have no doubt that the vast majority of you reading this will probably ridicule these ambitions. That will be because you are not a successful used car stock acquisition and used business development professional; in the same way as I am not an accounts professional or a Michelin starred chef. But it can be and is being delivered upon; I should know because, not only do I deliver on this for my own business, I am also taking these initiatives to a few select used car businesses right now. 

For those curious, ambitious, capable of opening their minds and taking their strategic used car business development thinking on the journey required, I would say this. In the used car markets to come, those with used car vehicle parks of 680,000 less vehicles, (in terms of available stock), my question would be; how well set up is your business to survive? 

In truth the vast majority aren’t. It is the inconvenient truth of our times that you can have the best people and operational procedures imaginable, but if you don’t have the professionals required to secure used car stock holdings in the volumes and at the prices required to remain profitable? Well it is all going to be for nothing. 

I have observed how the used car stock acquisition landscape has evolved during the last 12-24 months and I promise the vast majority reading this, you will not be ready for how the acquisitions landscape has evolved. To the point where (as mentioned above) all those relying on the used car stock acquisition initiatives and skills of the recent past, will be left floundering. 

For these businesses, those reactionary businesses purchasing stock on a hand to mouth basis and in the moment, (the “Just In Time” market), it will be a challenge to acquire used car stock at prices (and in the volumes) that ensure your business remains profitable. 

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

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

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

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

Andrew.

Used Car Stock Acquisition 101,,,,,

Your Business Must NEVER Be Not Buying! 

Welcome the 4th article in the series of articles exploring the golden rules of used car stock acquisition, those golden rules and pieces of advice explored and first outlined in the article listed below, and written for my Used Car Business Development Blog; 

Used Car Stock Acquisition 101! 

As the process of exploring all the pieces of advice contained within the original article continues over the coming weeks, those wishing to read the previous articles will be able to do so by following the links to the articles below. 

Used Car Stock Acquisition 101!,,,,,,, “If You Are Doing The Same Thing As Everyone Else, Then Stop!” 

Used Car Stock Acquisition 101!,,,, Successful Used Car Stock Acquisition Professionals Are Not Buying Used Car Stock From Auctions! 

Used Car Stock Acquisition 101!,,,, The Business That Controls Access To Used Car Stock, Controls Access To Used Car Customers! 

Now, back to today’s article exploring the golden rule of used car stock acquisition contained within the heading, a piece of advice that is inextricably linked to another contained in the original article; that: 

Never not buying is a financial structures and people business; one aligned to a successful used car business! 

So, back to the heading; when I am working with businesses building their used car stock acquisition programmes and business, or even just starting the exploratory discussions with each other (in order to see whether or not we will be a “Good Fit”), this will invariably be the concept that the vast majority both question and can’t grasp. 

Unfortunately fully embracing and understanding (as a business) the business strategy contained within the heading of this article is pivotal to success; any used car business or franchised dealer that can’t grasp the importance of the heading and then how you ensure that they develop their understanding to ensure that the business can deliver, will only be locking-in terminal decline. 

And the reason for this is that some businesses will! And invariably these will be your competition, and a business understanding, fully embracing and delivering on the operational and used car stock acquisition sentiment contained within the heading of this article, will over time starve other businesses of stock. 

So where do the problems with understanding how to take a business on this used car stock acquisition journey begin? Well, in “One Dimensional” thinking, aligned to a complete lack of expertise; let me expand further. At inception (I am yet to speak to the exception to this rule) all used car businesses think in terms of a stocking allowance equating to a maximum stock holding. 

Now in certain respects they are right but where they fail is in this thinking; the fact that your stocking budget dictates the maximum level of used car stock; it doesn’t. Of course I can’t give everyone all the answers for free, knowing how to deliver on this is part of my intellectual IP. But I can tell everyone reading this, if you think the answers to understanding and obtaining the knowledge required lies within the automotive sector, then you are wrong. 

You are wrong because no matter how much money you have for used car stock, which is then aligned to “One Dimensional” thinking, you will always run out of money! Just ask We Buy Any Car; even they run out of money and are then NOT buying! 

To understand and then be able to enjoy the benefits of this operational understanding you have to understand the importance of the foundations lying beneath, those contained in the second “Golden Rule” listed above; that never not buying is a financial structures and people business; one aligned to a successful used car business! 

Too many reading this article and then those that I have exploratory discussions with, limit their thinking and ambition to what others are doing. Take used car stock acquisition and the threat of We Buy Any Car; too many try to take We Buy Any Car on and replicate what they are doing, because they have become blinded by both their success and the imaginary threat. 

Now the frailties of the We Buy Any Car Business model is for another article. My advice to everyone is to not to let your business thinking become restricted by the “Modus Operandi” of a business that has no other option, because it doesn’t enjoy the trading advantages that you enjoy; those that you currently choose to ignore. In other words learn to; 

Observe The Masses And Do The Opposite! 

Unfortunately though, hitherto unknown to you or your business, used car stock acquisition professionals, have been taking the role into new and previously unknown territory. The skills required to deliver on the heading for this article have been brought together from experience of running successful acquisitions campaigns in many commodities and progressive/alternative investment markets. 

Constructing and delivering successful acquisition campaigns in these markets broadens knowledge and expertise, especially in the regard to creative funding structures, those required to ensure that you are NEVER not buying. The truth is that everyone reading this article has enough money to be NEVER not buying; what they lack is the knowledge and expertise. That said, to deliver you will need the professionals required. 

First and foremost successful used car stock acquisition is a people business; if you are copying everyone else and relying solely on tech (ala We Buy Any Car) you will fail, of that there is no doubt. For sure the leveraging of technology is important (it plays a role in all the campaigns I am building) but only in the hands of the used car stock acquisition professionals who know how to use it. 

Then you will need the used car operation capable of delivering. For most this will be a huge journey, one I can but won’t expand upon here. However, a journey that is best summed up in the understanding that your used car operation must regard it is an abject failure for a used car to arrive on site not sold! 

Now I have no doubt that the vast majority of you reading this will probably ridicule these ambitions; that will be because you are not a successful used car stock acquisition and used business development professional; in the same way as I am not an accounts professional or a Michelin starred chef. But it can be and is being delivered upon; I should know because I am taking these initiatives to a few select used car businesses right now. 

For those curious, ambitious, capable of opening their minds and taking their strategic used car business development thinking on the journey required, I would say this. In the used car markets to come, those with used car vehicle parks of 680,000 less vehicles, (in terms of available stock), my question would be; how well set up is your business to survive? 

In truth the vast majority aren’t. It is the inconvenient truth of our times that you can have the best people and operational procedures imaginable, but if you don’t have the professionals required to secure used car stock holdings in the volumes and at the prices required to remain profitable? Well it is all going to be for nothing. 

I have observed how the used car stock acquisition landscape has evolved during the last 12-24 months and I promise the vast majority reading this, you will not be ready for how the acquisitions landscape has evolved; to the point where (as mentioned above) all those relying on the used car stock acquisition initiatives and skills of the recent past, will be left floundering. 

For these businesses, those reactionary businesses purchasing stock on a hand to mouth basis and in the moment, (in what I call the “Just In Time” market), it will be a challenge to acquire used car stock at prices (and in the volumes) that ensure your business remains profitable. 

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

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

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

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

Andrew.