The Used Car Business Laws Of Attraction,,,,,, 

At this important (embryonic in many ways) period for used car retailing, not just in the UK but in all used car markets, it will be important that those owning and/or running used car businesses accept and understand where they sit, in terms of their ability to attract and/or develop the used car business development, stock acquisition and retailing talent that they are going to require, moving in to 2023 and beyond. 

Now this article will jump straight to the premise that if you are reading this article, you have read my previous articles and you grasp the importance of what it will cover. If you are not grasping all the used car business development arguments that got us to here, please feel free to read the previous associated articles on my Used Car Business Development Blog. 

So back to the thread for this article, one which was first explored, albeit from a slightly different angle, in the recent article for my Used Car Business Development Blog; 

Used Car Stock Acquisition 101,,,, When It Comes To Successful Used Car Stock Acquisitions Professionals, You Only Have Two Options,,,,,, 

In brevity, the article above was one in a suite of ten, exploring the importance that used car stock acquisition professionals and initiatives are going to play in the used car markets of the next 3 – 5 years. Those of vastly reduced vehicle parks, the increased competition for those vehicle parks and the premise that all used car businesses have one of two options, when it comes tom securing the used car stock they require. They either: 

Learn To Attract The Talent They Require To Their Business, Or Learn To Develop That Talent!

But the automotive sector has some challenges in regards to both; firstly, the sector gave up developing used car business development and sales professionals over a decade ago. However, more damaging than this, it has never developed the professionals it now needs in order to thrive in coming used car markets; used car stock acquisition professionals. 

Instead, the sector chose to be lazy, to outsource the skills required and lean on Auctions and Re-Marketing companies; the institutions not frequented by genuinely successful used car stock acquisition professionals. The end result being that the vast majority of used car businesses now inhabit a dystopian used car stock acquisition nightmare of their own making; wondering around in a “Zombie - Like” state, moaning about the prices they have to pay for stock, and not possessing the acumen, skills or experience required in order to do things differently. 

Moving in to 2023 this leaves the sector in a perilous state and in urgent need of expertise that it doesn’t possess, which has resulted in used car businesses entering a “Beauty Pageant” to attract all the professionals now required to grow used car retailing and secure their trading futures. All of which will have successful used car stock acquisition at its foundations. 

So armed with this understanding, let’s look at what might appear to be the most palatable solution; used car businesses decide to develop the used car stock acquisition professionals they are going to require. Now I understand that this will have an appeal, sadly it is a misguided strategy; how do you develop this talent when you have no idea how to succeed in the role and/or build the initiatives and business required? Well sadly the answer is that you can’t; it would be akin to asking me to train astronauts. 

So the owners of, and those responsible for running, used car businesses have a decision to make and a journey to go on; that of attracting the talent they require to their used car business. Something that can only be undertaken once they have an understanding of the used car business they are running; an important level of understanding that was explored in my recent article; 

Which Used Car Business Model Will You Be Running In 2023?,,,, 

Why is so? Well there is a saying in the acquisitions community; “If you can buy and sell dinghies, then buy and sell superyachts! The premise being that (for those who are capable) it takes just as long to buy and sell a dinghy as it does the superyacht. In fact the only difference is the people skills involved in dealing with the two target audiences; that said, those capable of buying and selling dinghies will not always be able to transition to the superyacht market. The people skills involved are far more advanced and not everyone one will be able to operate in the associated circles. 

We see the same influences at play in the automotive sector, in both sales and acquisitions professions. More often than not, margins and the socio-demographic associated with your product are the key differentiators; when it comes to the calibre of professionals you will be able to attract to your business. If your margins are at the lower end (up to £1,500 RGP per unit) you will not attract the best used car stock acquisition talent to your business. In reality you can’t afford it on the margins being generated and you will also find agreeing strategic alliances with used car stock acquisitions professionals very difficult, for the same reason. 

Unfortunately this means that you will (in all probability) have to build your used car business and your acquisitions initiatives in a completely different way to some other used car businesses. This in turn will dictate everything, from where you are acquiring used car stock, the prices you are paying, the margins you are likely to enjoy (or not as the case may be) and the way you set up and run your used car business. 

Others though, those enjoying the bigger margins and with customers moving and operating in higher, more affluent socio-demographical groups, can choose to do things differently; when it comes to attracting the used car stock acquisitions talent they require. That said, they will still need to attract the very best used car stock acquisitions professionals to their business, those that understand the opportunity that lies within the image below; both for themselves and for the businesses they are in strategic alliances with, in terms of the supply of the profitable used car stock holdings. 

And this also presents me and the articles I am writing for my Used Car Business Development Blog with a problem. As used car markets continue to fragment, it is becomingharder and harder to write articles that are relevant and of maximum value in all used car markets; so I have had to make a difficult but commercial decision. 

In the past, I have always worked across all markets and I will continue to deliver specialised consultancy across every used car market and for every business. That said, and in terms of the articles I am writing and the strategic alliances I enter into, I will be now only be entering the most lucrative used car markets, when it comes to the used car stock acquisition strategic alliances I am working within. Therefore the content articles I am writing will have to reflect the expertise required. 

Unfortunately this will make the initiatives explored and discussed in my articles outside of the operating day-to-day reality of the majority of used car businesses; those where there is no longer the margin for “Excellence in Execution.” This will necessitate some further clarification that will come in the next few articles, and will also straddle different used car markets, in terms of the product the manufacturers concerned are retailing; BMW, Audi, Mercedes Benz and Porsche are examples of these manufacturers. Manufacturers straddling multiple used car markets and (in the case of BMW – please see article below) not appearing to operate effectively in the most lucrative and specialised markets, when it comes to retailing and acquiring their premium products. 

BMW And How Not To Sell Specialist High Performance Cars!,,,,,,, 

I will also use future articles to discuss and explore new markets of opportunity for used car businesses and for acquisitions experts; those investing in and trading used car stock for profit. Some of which will include the diesel market (undervalued at the moment and likely to see huge growth during the next 2 years) and the electric/alternative propulsion market. A market where no one appears to be controlling the narrative; providing consumers with the expertise required and exploiting the financial rewards that are available. 

 

All of this though is for the next articles, those leading up to Christmas and before those capable, are immersed in fully exploiting the once in a generation opportunity that will be there for the taking, in used car markets of 2023 and beyond. 

In the meantime I will sign off for now with my usual boiler plate and invitation. The invitation to those identifying that something needs to change in their used car stock acquisitions operation and to those curious about how they can take advantage of the opportunity looming, and to take full advantage of the trading conditions in used car markets. Those who are ambitious, capable of opening their minds and taking their strategic used car business development thinking on the journey required; and to whom 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? 

It remains 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 likely to be for nothing. 

Having built my first used car stock acquisitions business over twenty years ago, 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 those businesses 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, (from 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 used car markets 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 expertise 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 that you build the team required; one possessing the level of expertise and social skills required. 

Unfortunately though, the market value of the skills involved can render this process too financially restrictive; there are too few genuinely capable used car stock acquisition professionals around, so for the moment those days may be over. 

The businesses operating in the used car markets with the margins required, will probably have to enter an environment of strategic alliances via success based commercial arrangements, with the few proven and genuinely successful used car stock acquisition professionals. Provided they can open their minds to the new ways of working required by these capable professionals, those whose expertise is required, and explored in the recent articles below; 

2023 And Building The Right Used Car Team!,,,,, 

Your Used Car Business In 2023?,,,,,,,, 

For those curious, at the moment 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 opportunity 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.

Your Used Car Business In 2023?,,,,,,,, 

In the last article written for my Used Car Business Development Blog; 

2023 And Building The Right Used Car Team!,,,,, 

I explored how the teams used car businesses are going to have to build has changed, in terms of the experience and skills-sets required to be successful; I have no doubt that 95% of those running used car businesses (either independents or those aligned to a new car franchised dealership) will think that I am wrong and/or misguided, in terms of the issues explored in the article above! 

And that’s fine, I know as they do, that (deep down – if they are honest with themselves) this is not the case; in reality they are hoping I am wrong because “More Of The Same” is as far as their strategic thinking and acceptance, ambition and acceptance of change can go! There is also the fact that, and as Ann Landers observed; 

“Opportunities Are Usually Disguised As Hard Work, So Most People Don’t Recognise Them!” 

So this post is not for the 95%; my purpose in life is not to work with hostages, to educate and change the opinions of those who can’t see change coming, so therefore prepare for that change; no! This article (as all my articles are) is for the 5%, those curious enough to challenge their thinking, (not bury their head in the sand hoping all their problems will go away), and begin to start the planning process for the once in a generation opportunity that exists in used car markets at the moment. 

So without repeating the content of the last article (those interested in the issues explored can follow the link to the article above) I wanted to begin to explore how those looking to build the teams and strategic alliances required, are going to have to open their minds to different ways of working; depending on the used car market they are operating within. 

And the used car market you inhabit is key, as this will determine your margins, therefore the professionals you can hope to attract to your business. This understanding will be important because your business is no different to any other, in terms of the “Laws of Attraction,” and with used car businesses falling into two categories; those that enjoy the margin to operate an “Excellence in Execution” trading model and those that don’t, this understanding will be critical, in terms of how you plan for used car retailing in 2023 and beyond. 

Why? Well because it will determine what change can be planned for, and how that planning is undertaken. All used car businesses face a battle for used car stock over the next 3-5 years, (and then probably thereafter), and the strategy for used car stock acquisition will be different for each used car market. In general falling into 2 categories, those with the margin to attract the best professionals and those without. 

And this poses some problems for those without the margins required to attract the best talent to their business, because they have a different used car stock acquisition business and used car business to build. Their business will need to build the hybrid used car stock acquisition business (the business mating the benefits of tech to the right professionals) very differently, and far more reliant on tech; because this is the market they inhabit. 

It’s not that they couldn’t be far more successful with the right used car stock acquisition professionals and initiatives, they could. Unfortunately they won’t be able to attract and/or afford proven used car stock acquisition professionals. So these businesses will need to develop them over time, knowing full well that this will need to be a continual conveyor belt of development; once successful, the individuals being developed will probably leave and chase the bigger rewards elsewhere. 

Setting up and building this used car business and the associated used car stock acquisition business, is a totally different process in reality, to that involved with more lucrative used car markets; those where margins are bigger, so therefore are the possibilities. And this in turn leads to different approaches, in terms of how you build the teams you are going to now require. 

Those used car businesses without the margins required and also the market opportunity for increased margins (more on the opportunity for increased margins in a bit) will have to continue with a traditional employment model; that is what the professionals attracted to their business will expect. 

But for used car businesses operating in more specialist and profitable used car markets, those enjoying the margins associated with an “Excellence in Execution” trading model, the traditional employment model won’t work in the future; and it is the people owning and running these businesses that will have to open their minds to different ways of working, if they are to attract the used car stock acquisition talent they need. 

To help the owners of these businesses to understand this, let me give you an insight into the mind-set and the professional life of the successful used car stock acquisition professional. Hopefully this will bring understanding and increase the chances of building the strategic alliances you are going to need. 

Successful used car stock acquisition professionals are highly skilled professionals and very much in demand; they are already self-employed and probably building and running multiple business, in differing commodities sectors. 

In order to be successful they will have already built the team and the operational systems required for their own business, so can make their team available as an outsource resource, direct to your business in any strategic alliance that can be agreed, but a word of caution. These professionals, those whose experience you require, are already successful business professionals themselves, so in terms of any discussion, do not treat it as an interview. 

Treat any future discussion on a “Peer to Peer” basis and happy in the knowledge that if the professional concerned is in discussion with you and your business, then they will have already completed an element of due diligence on you and your business; if they didn’t think there was potential then they would be sitting down with you in the first place. Try not to understand the business of used car stock acquisition, as they will not be looking to understand yours, there is no requirement; if you were capable in the regard, you wouldn’t need their services and if they wanted to own the complexities of running a used car retailing business, then they would already be doing so. 

This discussion should be conducted on the basis of two business owners (both who need each other) having an open discussion to explore synergies and the potential collaborate; that said, be prepared to some challenging questions. They will need a forensic understanding of your business, the ambitions, the ability to keep retailing increased levels of used car stock, the level of your personal ambition and the funds available for increased used car stock holdings. 

From there a proposition will be made and at this stage it is important that you put envy aside; as much as this may never be known, it in on some circumstances, so never look at what this costs. These professionals know their worth (they have already established it) so in reality, and as much as this won’t happen, unless you offer a package of six figures plus (including all the tertiary benefits associated with professionals of this capability) for successful delivery, you will never employ these professionals. 

Besides, these strategic commercial arrangements will be success based, you won’t be paying basic salaries and/or offering any of the associated costs, so my advice would be to focus on the used car stock that is being made available to your business, at prices and in volumes that you are incapable of delivering yourself. 

These professionals have the skills to do what you can’t, target the most profitable markets of used car stock supply, offering direct access to the used car stock holdings you require to grow and prosper, in the used car markets of 2023 and beyond; the used car stock holdings belonging to the customers of your competitors. Try to remember at all times, that if you could build this business you would have already done so; and that even if you knew how to build the used car stock acquisition business required, you will have to develop the individual s required to deliver on that aim. 

So this process of building the strategic commercial alliances you require will be a very different process to that of employing a suitable candidate for a role within your business. Now I appreciate that for 95% of those reading this, the trading environment and exploratory process outlined above are bewildering and fanciful; I experience this a lot, and sadly I can’t (so don’t) work with hostages. 

However, for the remaining 5%, those identifying that something needs to change in their used car retailing operation and those curious about how this can be achieved? Those who are 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 likely 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, (from 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 used car markets 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 expertise 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 that you build the team required; one possessing the level of expertise outlined above. Although, and as explored in this article, the market value of the skills involved can render this process too financially restrictive; there are too few genuinely capable used car stock acquisition professionals around, so for the moment those days may be over. 

Most will probably have to enter an environment of strategic alliances via success based commercial arrangements, with the few proven and genuinely successful used car stock acquisition professionals. Provided they can open their minds to the new ways of working required by these capable professionals, those whose expertise is required? 

At the moment 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.

2023 And Building The Right Used Car Team!,,,,, 

In the previous article written for my Used Car Business Development Blog; 

There’s No Such Thing As The Used Car Market!,,,,,,,, 

I promised that I would further explore the issues facing all used car businesses, as the sector faces the challenging market conditions to come. In truth used car markets are evolving at breakneck speed and, with few barriers to entry, are open to disruption by independent businesses. Those approaching used car retailing from a different perspective and in many ways, running successful used car businesses in a way that more established businesses thought was no longer relevant and/or have forgotten; but all this is for another article. 

So where to start? Well, and as explored in the article listed above, start by understanding your used car market; this is the only used car market that should concern you, it is where your business operates and will dictate your trading model, levels of profitability and therefore the calibre of professionals you will be able to attract to your business. 

Moving forward this level of understanding is vital because once the skill-sets you are going to require have been identified, you will be able to assess the calibre of professionals (within these identified roles) you are going to be able to attract to your business. This is important because if your business can’t create the environment (and therefore ability) to attract proven professionals, you are going to have to find a way of developing them yourself; and on a continual basis – more on this later. 

When it comes to building successful used car teams and attracting the right calibre of talent, used car businesses fall into two categories; those that have the margin to operate a model that allows for “Excellence in Execution” and those that don’t. If your trading model and your trading margins allow for an “Excellence in Execution” trading model, then your business will attract the very best and most experienced used car professionals. Those that don’t, won’t; and let’s explore why. 

Used car businesses are no different to a football team; the best players will always end up at the most successful clubs; those that the most successful and will pay the most for their superior level of ability. The world of used car retailing is no different and this will present some businesses with some very real and sizable personnel development challenges. 

I won’t use this article to rehash the used car business development argument, I think the sector has finally woken up to the importance used car retailing will play (in successful futures) and the associated challenges; the number one challenge being the acquisition of profitable used car stock holdings. It is an inconvenient truth that we have used car vehicle parks of 680,000 fewer used cars looming on the horizon; the competition for which has never been greater. It is also unfortunate that the numbers no longer add up; there is too little used car stock and too many businesses reliant on it. 

 Unfortunately this will mean that many reading this article will not survive the coming “Darwinian” culling process that will descend on the Automotive Sector. So, in order to survive in the evolving trading landscape, every used car business has a new team to build; one associated with successful used car stock acquisition, regardless of the used car market you are operating within. Unfortunately though there are some problems, the main one being that few actually understand and/or appreciate the skills they are going to need, therefore will not know how to build the team required; we all don’t know what we don’t know. 

And let’s take a little time to understand why this is the case. Firstly, successful used car stock acquisition is a highly skilled role, regardless of the used car market you are operating within; although there are genuine nuances to each market. One thing that is applicable for all used car markets though, is that over the last 3 years this role has changed beyond the comprehension of the sector as a whole; partly because it happened during Covid and secondly, because professionals from outside of, and unknown to the sector, have targeted used car markets with new approaches and methods. 

So be in no doubt, independent used car businesses and those aligned to new car franchised dealers, entering their used car stock acquisition market with the initiatives and teams of professionals from the recent past, are going to fail; it is just a matter of time. I won’t explore the reasons why here, those interested to know why can follow the links to articles below, where they are explored in greater detail. 

Which Used Car Business Will You Be Running In 2023?,,,,, 

The Right Professionals Will Take Your Business Further Than Good Tech!,,,,, 

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

The one thing that all used car businesses have in common is that they get the used car enquiries that they deserve; they are inextricably linked to the used car stock holding associated with the business. So to succeed in the used car markets of 2023 and onwards will take a radical rethink; used car businesses will need to observe the masses and do the opposite, in order to secure their trading future and grow profitability. So with this in mind, what skills are going to be required and why? 

Well firstly, when it comes to building your used car stock acquisition team (or strategic alliances – if you can’t afford to) you will need professionals who know how to circumnavigate accepted and (so called) existing best practice; being more of the same will not work! Your used car business will need to transition (as a business) to one that is able to acquire used car stock holdings before they are made available to the trade and/or existing markets of supply. 

In order to do this you will need access to used car stock acquisition professionals who can protect your current sources of used car stock, those within the four walls of every business, but that no one currently secures. From there it will then be about targeting the used car vehicle parks of your fellow franchise holders and competitors; knowing how to find them and target the owners in the acquisition of their current vehicle. 

Success here is a highly skilled process, one that involves aligning the building of a funnel of incoming used car stock acquisition opportunity, with the very best consultative acquisitions professionals. To do this you will need the professionals who know how to target used car markets of supply strategically. 

If you are a franchised dealer for a premium brand based in the north of England, your most lucrative market of supply will lie inside the M25; if I have to explain why you probably shouldn’t have any responsibility for used car stock acquisition initiatives and/or used car business development. And if you want access to this supply of used car stock you need to know how to find the customers owning the vehicles you want to acquire, how to get their interest and then gain their trust, in order to ensure they are speaking to your business, when it comes to the matter of disposing of their current car. 

To succeed in this aim, first and foremost you have to grasp that successful used car stock acquisition is a people business, NOT a car business. You will need to have access to professionals with the social skills required to speak to these consumer audiences and build reputation and trust; to understand their pain points and the drivers that will ensure they sell your business their car. What 99% of buyers currently operating within the UK don’t understand, is that this is rarely about money and/or price, but in order to grasp this and understand what it is about, you will need access to used car stock acquisition professionals with the social skills required to operate within these circles and understand the motivation involved. 

Now, I can say without hesitation that I have not met or worked with a used car business that has access to used car stock acquisition professionals possessing these skills. So these businesses revert to the same old same old practices of paying the most money for used car stock in the “Just in Time” market of last resort. This will not be a successful foundation upon which to build any used car business moving into 2023; not that it ever has been by the way. 

To enjoy an alternative and profitable used car future you will need to build your used car stock acquisitions business, or the strategic alliances required, if can’t afford to employ the professionals required. To help in the process of selecting the right professionals, they should reassure you and leave you in no doubt that they know how to build targeted databases of value; the customers of your competitors owning the cars you need to purchase. 

They should then reassure you that they know how to engage with these target audiences over time and on behalf of your business, building reputation, trust and the impression that your business is the number one trusted purchasing business of the marque you represent. That they have the skills to take these target customers on the journey of disposal, ensuring that your business is purchasing cars at a time (in their ownership cycle) and at prices, that other used car businesses do not enjoy. 

These professionals will be laser targeted and reassure you that it is their raison d’etre to NEVER pay market value for used car stock; their involvement with your business will not just be about increased volume of used car stock supply, but also bigger margins. But to succeed in this regard will take skills the sector doesn’t currently enjoy or possess. 

The automotive sector is one of the worst when it comes to building databases of value, engaging with these databases using valuable content to build trust, in order to then leverage data for commercial advantage. And I am convinced this is because those running businesses have absolutely no idea how this is done, so resort to being a “One Trick Pony” acquisitions business. A business leading with paying the best price and by expecting tech to do the heavy lifting. 

Well guess what people, make it all about price and that is the world your business will inhabit. If you think your business is advanced because it has a “Sell Your Car” page on its website, then think again. When it comes to successful used car stock acquisition your business is a typewriter in a world of laptops. 

Luckily though, because the world of used car retailing, especially acquisition, is generally engaged in this “Race To The Bottom” leveraging tech and “Best Price” messages, there is a once in a generation opportunity for those grasping that this can’t be the way, to secure their future. An opportunity to enjoy levels of profitability only dreamed of by their competitors; but only through successful acquisition. 

Now I appreciate that for 95% of those reading this, the initiatives mentioned above are bewildering and fanciful; I experience this a lot, and sadly I can’t (so don’t) 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, (from 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 used car markets 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 expertise 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 that you build the team required; one possessing the level of expertise outlined above. Although the market value of the skills involved can render this process too financially restrictive; there are too few genuinely capable used car stock acquisition professionals around, so for the moment those days may be over. 

Most will probably have to enter an environment of strategic alliances via success based commercial arrangements, with the few proven and genuinely successful used car stock acquisition professionals. Provided they can open their minds to the new ways of working required by these capable professionals, those whose expertise is required? 

At the moment 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.

There’s No Such Thing As The Used Car Market!,,,,,,,, 

As we all begin to plan for 2023 I thought it important to take stock and begin to explore the challenges that lie ahead, which are numerous. So, and as I did with the recent suite of articles exploring the challenges associated with, and importance that effective used car stock acquisition is going to play, those written for my Used Car Business Development Blog and first covered in the article below; 

Used Car Stock Acquisition 101!,,,, 

I have decided to run a selection of articles exploring the challenges to be faced, as used car markets continue to evolve at a frightening pace. That said and in starting this series of articles, I thought it important to explore one very important issue first; the fact (and the heading for this article) that there is no such thing as “The” used car market! 

This is an important point to explore and understand because it will (in all likelihood) dictate how you look at your used car market, who you are listening too and the operational and business development decisions you then make. And who you are listening too is important, so much so that it has already been explored in the article below; 

Used Car Values?,,,,, Be Very Careful Who You Listen To!...... 

But back to the heading for the article and why I state with such conviction that thinking and operating on the basis that “The” used car market exists, is a flawed perception and process. In truth the used car market (rather like many other commodities markets – the housing market for example) has always been made up of many individual and highly specialised markets, all operating and performing differently from each other; only that now, used car markets are evolving and fragmenting at a far greater speed. 

And this process of fragmenting and evolution will continue at breakneck speed as the personal transport space continues to evolve. Some of these individual used car markets are going to be adversely effected by the economic headwinds, which may as, a consequence, cause other used car markets, those where stock is undervalued, to explode as consumer purchasing behaviour changes and adapts. 

All individual used car markets are effected by many influences; economic headwinds, geography, supply and demand, consumer sentiment and the profile of used car stock; to name just a few. So any expectation that you can find accurate commentary on “The” used market is deluded in the extreme, and very dangerous to base used car business development decisions upon. 

Although not for exploring again (those interested can follow the link to the associated article above) this renders much of used car market commentary and data published (and charged for in many cases) flawed and of questionable value; especially the information and data published by the likes of Cap HPI, Autotrader, Indicata Auction Houses and Remarketing Companies. 

To those organisations listed above (I am not here to advise on their behalf) I would only advise that they are open about their data, the sources and volume, so we can all draw our own conclusions as to the value and accuracy of the data and information being published. Personally, I doubt this will happen as this would lay bare just how invaluable and/or narrow the data-cut and commentary is. Most of which, it is important to remember, is being published by organisations employing professionals with no experience of building and running successful used car businesses. 

So what’s the answer for used car businesses looking to plan for 2023? Firstly, accept that you operate within an individual and highly specialised used car market; then learn to collect and analyse your own data, which is available for free within the four walls of your business. This is the only data that matters (at inception) because it is data being generated by your business; it is bespoke to your market and the only data that you should be reading and then using to plan your used car business development strategies. 

This data will also lead to increased levels of knowledge which will enable you to understand your used car market better, and become the trusted specialist within your used car market. Vital for used car retailing success, especially when looking to grow used car retailing and enlarging used car stock holdings; any success within which, will have successful used car stock acquisition at its foundations. More on this later. 

Thereafter and once this understanding is embraced, individual used car businesses can begin to focus on how their market behaves and more importantly, how they can take advantage of the trading conditions looming on the horizon; along with the team they are going to have to build in order to do so. 

Understandably there is much doom and gloom out there at the moment and I do not wish to make light of the challenges facing the sector. However, although challenging, the current trading conditions will present those businesses capable of taking advantage, with a once in a generation opportunity to secure their long term survival. Sadly though, it is an inconvenient truth that not all used car businesses can survive the coming market, the numbers just don’t add up. 

I will not comment on the new car market, there are too many unknowns influencing individual business models, (impending agency agreements etc.), and it will be difficult for manufacturers to inject stimulus into the “Narrow” trading environment of the new car market next year. All this renders the new car market far less of a free market, leaving it more difficult to comment on accurately, in terms of the planning and strategies required. 

But used car markets are totally different; they are totally exposed to market forces and herein lies the opportunity, for those able to understand and read the used car market they operate within, and therefore plan accordingly. That said there is much to do, if used car businesses, (both independent specialists and those aligned to franchised dealerships), are going to be in a position to be able to take advantage of the market conditions. Especially when it comes to building the teams required and getting your business used car market ready. 

All of which will be explored in greater detail in further articles to be published in the coming weeks; when I will explore the used car business development priorities of our time including;

• Understanding how to read your used car market. 

• The associated sales process and “The Team” required. 

• How to acquire used car stock within your market; the professionals and skills-sets now required. 

• How the new breed of professionals you require work and how to adapt your mind-set. 

• Building the successful strategic alliances you require. 

• Leveraging your trading advantages in a market with no barriers to entry. 

For now, I would only advise that business leaders and owners don’t listen to the myths being peddled by the aforementioned organisations above, especially in regard to used car pricing and what your aspirations should be in that regard. With many used car stock holdings ageing in profile (due entirely to the ill-advised acquisitions largesse of the pandemic) and the current economic headwinds bashing the used car sector, some used car markets will struggle for liquidity in 2023. 

In this environment used car prices will fall dramatically; but only for those who understand the specialist used car market they operate within and those capable of targeting the most lucrative markets of used car stock supply; and taking advantage of a reduced level of competition. 

With used car markets evolving at breakneck speed, those businesses ensuring they’re liquid (in terms of funds available for used car stock holdings) and investing in the right professionals and strategic alliances, will prosper. These businesses, in conjunction with the leveraging of creative funding and purchasing solutions, in hands of the right professionals, those understanding their used car market and how to leverage their national used car market, will be ones who succeed. More on this over the coming weeks. 

So in the next article I will explore the importance of getting the right team in place, which will possibly be the most important article I have written for some time; why? Well I have not met one used car business who has the right team place, (or has clarity on the professionals and skills-sets now required to make up this team), and I doubt few can say they have. 

The professionals and skills-sets now required, and more importantly the way these professionals work and operate, has evolved beyond the comprehension of senior professionals within the automotive sector; the majority of whom are still looking to employ the same professionals they always have, and in the same way they have done so, for over 20 years. 

More on this next week; but rest assured that the one professional and skills-set any successful used car business in the future will need access to, is a successful and experienced used car stock acquisition professional, because; 

“In the used car markets to come, those with used car vehicle parks of 680,000 less vehicles, (in terms of available stock), your first question for yourself should be; how well set up is your business to survive?” 

In truth the vast majority aren’t and at the risk of repeating myself, but this is important: 

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. 

The used car stock acquisition landscape has evolved beyond all recognition 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 those used car businesses relying on the used car stock acquisition initiatives and skills of the recent past, are going to be left floundering in the market conditions looming on the horizon. 

For these businesses, those reactionary businesses still only purchasing stock on a hand to mouth basis and in the moment, (what I call 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 individual specialist used car markets 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.