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.

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

As we all begin to prepare for the used car retailing and business development challenges coming thick and fast, I have been left pondering about the decisions to made, when it comes to planning for 2023 and onwards. 

Effectively used car businesses (whether they are independent specialists or assigned to a franchised new car business) have a “More Of The Same” or “Radical But Necessary Change” decision to make; and for many it will not be an easy decision. 

Personally I think the used car market is undergoing a period of once in a generation change, as explored in the last article written for my Used Car Business Development Blog; 

Is The Automotive Sector Entering A Recession?,,,,, I Hope So!,,,, 

So the decisions we all make now will be pivotal, in terms of future used car success. We all have our different challenges; in many respects it is easier for me, as a business I am agile and fleet of foot, allowing me to target markets of opportunity. For established used car businesses it is far harder; your business will be known for its retailing model so in many ways your decisions are more granular. 

They are down to how you choose to operate, the operational model required to support that and the professionals you are then going to need in order to execute. In essence it is a decision of whether or not you think your current used car business is going to be “Fit For Purpose” in the used car markets of 2023 and beyond. 

In my opinion the number 1 challenge at the moment for all businesses operating in the used car market, is that the market is both massively over provided for (in terms of retail and associated businesses) and massively under provided for (in terms of used car stock); ergo those planning for the used car markets of 2023 and beyond are actually planning for their business survival, in the first instance. 

The numbers just don’t add up and many (myself included) think we could lose up to 25 - 30% of the businesses currently operating in the used car space. And this doesn’t just include franchise dealers, it includes independent used car specialist (as Carzam and Cazoo are proving, size is no guarantee of success), auction houses, re-marketing companies and leasing companies. 

I won’t expand again on the reasons for this, they were explored in my recent article (link below), and those wishing to understand my thoughts can follow this link to the article on my Used Car Business Development Blog. 

Not Listening Will Ensure That Franchise Dealers Fail!,,,,, 

So with this inconvenient used car trading reality in mind, the question facing all used car businesses is what trading model will now be required, in terms of surviving and growing in the coming used car markets? So, albeit in brevity (bullet points below), let’s look at the operational models of two used car retailing businesses; so you can all decide which one you recognise, and which one you think gives you the best chance of trading survival, in the used car market to come. 

Let’s start with the typical used car business operating right now, one aligned to a new car franchised dealership; because in truth it is similar to many independent used car businesses, albeit enjoying some significant trading advantages. 

• This business will have either a split sales team or a sales team selling new and used cars. 

• This business may employ a separate used car manager; although the responsibilities of this role fluctuate wildly throughout the sector. 

• This business will (in 95% of cases) not have a used car business, it will be retailing self-generated ex-demonstration vehicles, (preregistered new cars – yes I believe market conditions will lead to their return) and part exchanges; it is unlikely to be actively acquiring used car stock, in volume, for retail. 

• At best, this business may enjoy the services of a buyer. 

• In 95% of the cases the buyer will be acquiring used car stock from “The Trade,” auctions and re-marketing companies; so in reality any buyer operating like this (95% remember) is acquiring the most expensive used car stock available. 

• This business will then (in 95% of the cases) go on to choose to advertise their used car stock on Autotrader, to a national market; thus entering the race to the bottom on used car pricing, aligned to the most expensive used car stock; this is NOT a profitable model. 

• This business does not employ or have access (via commercially agreed strategic alliances) to any proven used car stock acquisition professionals. 

Now let’s look at another alternative used car business, in terms of their operational model:

• This business will have a dedicated used car sales team. 

• This business will employ a used car manager with a clearly defined role and set of responsibilities, (not including used car stock acquisition – they already have a fulltime job), in terms of managing the used car business and achieving the sales objectives. 

• This business will be a successful used car business; if it is aligned to a new car franchise it will be retailing ex-demonstration vehicles and part exchanges, however 95% of sales will be used car sales; stock acquired by its own used car stock acquisition business and/or strategic alliances. 

• This business will not employ a traditional buyer; it will have no need to because it will not be acquiring used car stock from auctions or remarketing companies; used car stock that is not profitable, so is therefore of no interest to this business. 

• This business will have built a successful used car stock acquisitions business, by attracting genuinely capable used car stock acquisitions professionals to the business. Or by agreeing the required commercially viable strategic alliances. 

• These used car stock acquisitions professionals and/or strategic alliances partners will know how to target used car markets of stock acquisition opportunity and how to control used car markets via access to used car stock holdings. 

• These professionals will ensure that the associated used car business enjoys a continual supply of used car stock at below market value. 

Now it is not for me to tell anyone which business model to choose; we are living through a period of great change in the used car market and we all need to make our own decisions. But if it were me, I would be building the second of the businesses listed above, and the most important difference between these two business models (all else stems from this foundation) is access to a successful used car stock acquisition business and/or professionals. 

Why? Well it is important to grasp that all used car businesses get the enquiry levels they deserve, and this will be driven by the used car stock holding that the business carries; the two go hand in hand and will do so more often, in the used car markets to come. And as much as used car retailing (like a lot of retail commodities markets) has gone through (and continues to go through) a period of market evolution, one discipline has evolved beyond all recognition; used car stock acquisition. 

And instead of concentrating on used car stock acquisition, it is my belief that the vast majority used car businesses are focusing on the wrong priorities; in the main wanting to be “Liked” rather than “Trusted.” Unfortunately this dictates how they are then setting their business up, in terms of their operational model and the professionals being employed; which is their choice of course, but I don’t buy it. 

This will no doubt be controversial but I think used car businesses should worry less about how much the customer “Likes” their business, because this thought process is fundamentally flawed. Instead concentrate on being “Trusted” because this is far more important; few though understand the nuances. In order to understand the nuances most would do well to take some time to think about how the customer behaves, when looking for a used car. In the vast majority of cases they are contacting your business because you have a car they are interested in or want, they are not contacting your business because they want to make some new friends. 

If your business has the car they want, at a price that is competitive (in their eyes) they will contact your business; from here a professional “Peer-to-Peer” based sales process (not the subservient, unhealthy and needy “Master-Servant” environment the majority operate within), conducted between the customer and a genuinely successful sales professional, will lead to both a profitable sale and the building of a business relationship based on “Trust!” 

However, this used car business and trading environment will only be enjoyed from the foundations of successful used car stock acquisition, (it will be the used car stock holding that generates enquiries) and therefore from operating as the second of the two businesses above. Unfortunately this operating “Status Quo” will not happen by accident. 

To get here used car businesses will need the used car stock acquisitions professionals required; professionals who will not be dealing in the used car stock acquisition market that the majority operate within; what I call the “Just In Time” market. This is the market that the vast majority choose to operate within, (because they have no alternative), the market served by the auctions and re-marketing companies. It is an inconvenient truth that stock purchased from these sources cannot be the most profitable; if at all? 

It is the acquisitions market of last resort, where you pay the absolute most amount of money for used car stock on any given day, because it is the last “Watering Hole” for those who don’t have the skills to acquire used car stock in any other way. Those possessing the used car stock acquisition skills of the 1980’s and 1990’s, when unfortunately we are now operating in 2022. 

Be in no doubt though, the used car stock acquisition professionals alluded to in the second of the two businesses above, those with choice and therefore dictating market pricing, will be doing so because they know how to build a ruthlessly effective and successful used car stock acquisitions business. The business required to target the most profitable target markets of supply and to build an acquisitions funnel of continual used car stock investment opportunity. 

Now I appreciate that for 95% of those reading this, the initiatives and trading scenarios mentioned above and alluded to, are fanciful; I experience this a lot, and sadly I can’t (so don’t) work with hostages. But 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 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. 

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, (the first business model mentioned above), 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 (those required in the second business listed above) 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!,,,,,

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

As I now come to the last of the articles expanding upon the original list of used car stock acquisition “One Liners” and “Golden Rules;” those originally outlined in the article below, written for my Used Car Business Development Blog; 

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

I thought it important to discuss one of the most pressing issues of our time. The over reliance on technology and the lack of understanding, regarding the role that successful and experienced professionals will play in securing your future; especially when it comes to securing the used car stock holdings required, in order to succeed in the used car markets to come. 

Let’s get one thing straight though, the “Right” technology is important to the successful used car stock acquisitions business and professional, but not in the way most imagine, or is being currently utilised by the many. Tech is just like any other tool, a hammer for example; it has to be used by the right professionals and in the right way. A hammer is excellent for hammering in nails, whereas a screwdriver isn’t, however, when it comes to tightening a screw; well it’s the hammer that is useless, and in anyone‘s hands. 

To fully understand this we need to understand what tech is required and how it is then utilised to bring effective scale and leverage to the successful used car stock acquisitions business and/or professional. Everything the successful used car stock acquisition campaign and business does, every initiative deployed and every piece of technology being used, should be designed to provide more opportunities for the right professionals to then go on and bring them to a successful conclusion. It should never be used to close the purchase agreement! 

In delivery, successful used car stock acquisition is a people business, not a tech or a car business; so tech should never be used as the “Close” because all technology can do at this stage is offer someone a price, therefore making the whole transaction about price. For sure you can run this business at scale, this is what We Buy Any Car do, but all this will ensure is that you acquire the most “expensive” used car stock holdings; when what you need is the most “profitable” used car stock holdings. 

The relationships you require in order to be successful in purchasing retail used car stock holdings cannot be secured via technology, but technology can be used in the process of building trust and obligation with targeted markets for used car stock acquisition; generating the opportunities to acquire used car stock that successful used car stock acquisition professionals can then bring to a successful conclusion. 

And when I say successful used car stock acquisitions professionals, I’m talking about professionals the trade as a whole doesn’t know, because they aren’t seen at the auctions or purchasing used car stock in the “Just in Time” market; the market where 95% of businesses are acquiring used car stock. They are the professionals whose Raison D’etre is to never pay market value for used car stock; then also knowing what is required to succeed in this regard. 

These are the professionals who know what is required to secure the stock holdings you have already supplied (locking them into returning to the business and therefore out of reach of competitors) and then go on to target the cars supplied by their fellow franchise dealers; an ability that will determine the winners and the losers in the used car markets looming on the horizon. 

Now I appreciate that for 95% of those reading this, the initiatives mentioned above are 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, (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. 

Those wishing to read the previous articles in this series of articles covering used car stock acquisition principles and best practice, will find them on my Used Car Business Development Blog; or by following the individual links below. 

Used Car Stock Acquisition 101! 

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! 

Used Car Stock Acquisition 101,,,,,Your Business Must NEVER Be Not Buying! 

Used Car Stock Acquisition 101!,,, Successful Used Car Stock Acquisitions Professionals Never Pay Market Value For Used Car Stock! 

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!Used 

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

Used Car Stock Acquisition 101!,,,,,,,,There’s A Big Difference Between Wanting Things To Get Better And Committing To Make Things Better! 

 Andrew.

Is The Automotive Sector Entering A Recession?,,,,, I Hope So!,,,, 

There is much talk about an impending recession in the Automotive Sector at the moment and it is interesting to assess the perspective of some of those posting about the likely forthcoming market conditions; whether that be from a positive or a negative perspective. So now that we are all back from our holidays I thought I would add my “Two Pennies’ Worth.” 

Firstly I think it is important to understand that whether or not we are likely to think we are in a recession, is down to the prism of own lives and experience. For many in the automotive sector, I have no doubt that they will feel that they have been trading in a recessionary market for at least 3-6 months, because it will be their “Lived” trading experience. 

And it is how you look upon, and your attitude to, that experience that is key to how anyone or business, will prevail during the next 2-3 years; whether or not you see the coming market as a time of doom and gloom or of tremendous opportunity. Perception is reality so perception is important; as Harry S Truman said: 

“It’s a recession when your neighbour loses their job; it’s a depression when you lose yours!” 

Personally I think the next 2-3 years will represent a once in a generation opportunity for those with the skills and experience required, in order to take advantage (more on this later), because I think the Automotive Sector has the “Perfect Storm” of challenges building over it; a likely consumer led recession being just one of them. Unfortunately if you are an example of the average franchised dealer, then I think the vast majority of these businesses have never been so under prepared for the challenges on the horizon; and if I’m honest a lot of it is their fault. 

As much as the Automotive Sector has Agency Agreements, unfavourable economic headwinds, new car production problems and reduced used car vehicle parks to contend with, this will create a very profitable used car market based trading landscape for those agile enough to adapt. And for those possessing the skills and expertise required to take advantage of the trading conditions looming on the horizon. 

So I say bring it on! Now before quantifying these comments let me say that I do not make light of the “Darwinian” culling process that the sector will go through; many will lose their jobs but the successful businesses will create new jobs, only these will be different from the roles in place at businesses at the moment. They will be the roles required in order to succeed in the market conditions of tomorrow, when all businesses (not just used car businesses and operations) will need to be able to lean on some different and hitherto unknown professionals in order to survive; more on this in another article. 

So let me expand upon my own thoughts, predictions and experience. Firstly the used car market is no different to any other commodities market, and I know how commodities markets work; I have been acquiring used car stock (along with other commodities) and trading them for a profit for over 25 years. Commodities markets (and therefore prices and availability) are effected by many trading influences and I have a good idea how this market will play out. 

This knowledge is powerful, but is even more so when you also have an understanding of how the competition will then be forced into operating, in terms of the markets you are targeting. Being honest I think the competition has never been so under prepared and I (like the others who will take advantage of the opportunity presenting itself) have the financial crisis of 2007/2008 to thank for that. 

During that period and since, the vast majority of franchise dealer networks have become nothing more than an extension of the manufacturer and therefore a business that prioritises new car retailing. During this period of over supply of new cars, the vast majority of those that tried to embrace used car retailing, actually didn’t. In reality becoming nothing more than businesses retailing ex-demonstrators, pre-registered new cars and part exchanges; well those that they didn’t send to the auction or to their agreed re-marketing partner. 

These businesses (along with the manufacturers) also dispensed with the notion of developing used car retailing and business development professionals; choosing instead to outsource essential used car stock trading skills to third party businesses. And it is this, along with the “Perfect Storm” of trading challenges looming on the horizon, which makes me so positive about the trading conditions to come. You see I know that at the moment, very few businesses (if any) will have the professionals required to take advantage of the trading conditions that will prevail. 

And let me expand further; at the average franchised dealership alluded to above, this is how the period between September and Christmas will (in all likelihood) play out. Because these businesses have (and never have had) no used car business development and/or trading expertise to call upon, (especially used stock acquisition expertise), their used car stock holding will now be ageing, in terms of days in stock, looking expensive and ultimately loss making. 

Invariably the used car stock holding of these businesses will have been purchased many months ago, during the feeding frenzy for used car stock; the feeding frenzy entered into by all the used car businesses with no access to genuinely successful used car stock acquisition professionals, so therefore having no alternative. In an ideal world these businesses should not have been out buying used car stock in this market; not without the required skills and expertise, but they were! Probably because they were listening to, and believing all, the hype surrounding prices. The hype being peddled by those with no experience of buying and selling used car stock for a profit; HPI, auction/re-marketing companies and Autotrader for example. 

Now, many months on, this stock is not selling because we are now trading in a recessionary market. The consumer will not see “Value” and these businesses will not be able to sustain the losses required in order to sell this stock, release the associated funds and replenish stock at today’s prices. And it is just about now, that the “Accountants” will decree that these businesses are no longer buying; not until the stock level has been reduced! Now when this happens en masse (as it undoubtedly will) it leaves those businesses with liquid funds for used car stock investment, and the acquisition skills required, in an enviable position; that of choice and of setting market pricing. In brevity; 

Choice: When you are involved in used car stock acquisition full time you learn to read the behaviour of both the market and of your competition. You are blessed with the data required (your own – not the fairy tales available from HPI, Autotrader and/or auction/re-marketing companies) and the expertise to ensure that you are in a position to leverage this data and knowledge, in order to take advantage. 

Successful used car stock acquisition professionals know that they are operating in a people business first, not a car business. They have the people skills combined with the acquisitions skills required, in order to position discussions about purchasing cars in their favour. And when there is little competition for stock (remember the average businesses will not be buying) combined with distressed selling consumers under pressure to reduce their overhead, there is opportunity to acquire used car stock well below market value, and in volume. 

Pricing: When you are purchasing used car stock at prices not enjoyed by others, you decide how to control market pricing in your favour; dependent of course on the profile of used car stock you are purchasing. You can play the market because you also understand how both the consumer operates within certain markets, as well as the trading weaknesses of your competition. 

Now in terms of being a “Useful Idiot,” the one thing Autotrader Is good at (for the successful used car business) is supplying a shop window to how the less capable used car businesses within franchise dealer networks are operating. Knowing full well that once a car has arrived unsold (“Selling” used car businesses see this as a failure) into their used car stock they are then, more than likely, entering the less profitable “National” used car market. 

However, the successful used car stock acquisition professional will be able to ensure that this stock can then be advertised as the cheapest available on the Autotrader platform, whilst also retaining a viable profit margin. if this successful used car business then decides that they wish to drive market pricing down they can; via volume of acquisition for this profile of stock, and by continually setting pricing below the cheapest available, and whilst still remaining profitable. 

This situation then becomes a devastating trading reality for the competition, because these adverts then go on to provide further sales enquiries for the successful used car business; the business that will no doubt be aligned to a successful used car stock acquisitions business/professional; the two tend to go hand in hand. 

However, all of the above will not happen by accident and these professionals will not be dealing in the used car stock acquisition market that the majority operate within; what I call the “Just In Time” market. This is the market that the vast majority choose to operate within, (because they have no alternative), the market served by the auctions and re-marketing companies. It is an inconvenient truth that stock purchased from these sources cannot be the most profitable; if at all? 

It is the acquisitions market of last resort, where you pay the absolute most amount of money for used car stock on any given day, because it is the last “Watering Hole” of those who don’t have the skills required to acquire used car stock in any other way. Those possessing the used car stock acquisition skills of the 1980’s and 1990’s, when unfortunately we are now operating in 2022. 

Be in no doubt though, the used car stock acquisition professionals alluded to above, those with choice and those dictating market pricing, will be doing so because they know how to build a ruthlessly effective and successful used car stock acquisitions business. The business required to target the most profitable target markets of supply and to build an acquisitions funnel of continual used car stock investment opportunity. 

And it is for these reasons that I am so positive about the likely market conditions coming to the sector during the next 2-3 years. Now I appreciate that for 95% of those reading this, the initiatives mentioned above are fanciful; I experience this a lot, and sadly I can’t (so don’t) work with hostages. But 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 sales professionals 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, in order 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.