Used Car Business Development

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.