Used Hybrids Continue Their Charge Up The Market

EV
Dealers still wary of stocking second-hand hybrids are missing out on sales opportunities with the latest Q3 data showing demand accelerating into top gear as they recorded growth of 13% in the three month period.

Figures from the Society of Motor Manufacturers and Traders show a healthy used car market in Q3 with year-on-year sales up by almost 20,000 and comfortably breaking the two million mark. The trade enjoyed growth of nearly one per cent, reversing nine consecutive quarters of decline and while the January-September total was slowed a little by a slightly weaker final month it still breaks the six million mark.

But it was the performance by PHEVs and hybrids which stands out. Better availability as they increasingly trickle down from the new car sector helped propel growth of 13% showing which way the wind is blowing even if overall numbers of 37,500 are insignificant compared to the 860,000 diesels changing hands. Adding both kinds of hybrids increases their market share YOY from 1.6 to 1.8%.
Now the trade says the government should get behind this demand and give financial incentives to buyers in the second-hand sector to switch to the cleaner powertrains.

Mike Hawes, SMMT Chief Executive, said,

“This growth, following a prolonged period of decline, is encouraging and it’s great to see a growing appetite for plug-in and hybrid models as they start to filter down to the used market. However, ongoing economic uncertainty and growing confusion over local clean air zones make it difficult to predict the future. To make meaningful environmental gains, we need to get more of the latest, lowest emitting cars on to our roads replacing older ones quickly – and that means delivering the right conditions and policies to give new and used buyers confidence to invest in the vehicles that best suit their driving needs and budgets.”

Growing Appetite For Plug-Ins and Hybrids

His comments were backed by Ian Plummer, Commercial Director at Auto Trader who said:

“Despite the lack of a compelling narrative or any meaningful financial incentives for consumers to make the switch from fossil to electric, used alternatively fuelled sales recorded another strong performance over the last quarter. We’re seeing a similar picture on our marketplace where searches for pure electric vehicles have increased 59% since October 2018. What’s more, this month the Renault ZOE is both the fastest and second fastest selling used car in the UK, the first time a pure EV has achieved the ‘one-two’.

“In case there were any doubts, there is clearly a growing market for second-hand low emission vehicles. However, whilst AFVs undoubtedly represent an exciting opportunity for retailers, the biggest challenge to consumer adoption may no longer be the traditional perceived barriers to entry, such as cost and infrastructure, but rather a matter of long-term supply and demand for affordable nearly new or used models.”

For more information on Click Dealer’s services, contact The Clickers on 01782 478 220. You can also reach us via [email protected] or through our contact page.

Dealers See Strong Business In Used LCVs

Dealers are stocking up with second-hand vans and LCVs as a plentiful supply at auction was met by increasing demand as a leading remarketer said that buyers had to bid competitively to stand a chance of getting the vehicle.

Manheim reported that first-time sales of commercials stood at 84% in October, up slightly on September’s figure, and it saw a month-on-month growth of 12% in volume sold.

Matthew Davock, Manheim’s Director of Commercial Vehicles, said:

“The first-time conversion rate is a very important measure for us, because it’s a strong indicator of demand in the market. We sell a huge variety of stock, so when buyer interest is low those vehicles that need recon work typically take longer to sell. That just wasn’t the case in October as buyers faced fierce competition online and in the lanes.”

The competitive marketplace translated to a slight uplift in price, and performance against the guide price improved by 2.3% MoM.

Use of Manheim’s online channels also continued to grow in October, and 47% of vehicles were sold to online bidders, an increase of 11% YoY. As a result, Manheim saw average days-to-sell fall to just 9.7 days, down a full six days on October 2018.

Positive Retail Activity and Stability

He added:

“In this buoyant wholesale market our online sales channels are increasingly important for buyers looking for stock, and more vendors are keen to remarket stock 24/7 and reap the rewards of reducing their days to sell. In October, 13% of the LCVs we sold were bought online before they reached any physical auction, taking an average of just five days to sell.”

Looking ahead, Matthew said he expects to see the market remain healthy in November, with consistent wholesale volume and buyer interest, adding:

“Our buyers reported positive retail activity and good signs of stability in October, and with a strong stock pipeline at Manheim, November is looking good.

“Towards the end of the month, stock with excess damage will start to be more challenging as buyers weigh up preparation time against potential time-to-sell. Vendors would be well-advised to take this into account when setting a reserve for poorer stock profile vehicles as we move into December.”

For more information on Click Dealer’s services, contact The Clickers on 01782 478 220. You can also reach us via [email protected] or through our contact page.

National Stress Awareness Day

Today is National Stress Awareness Day and we know that this time of year can bring to the surface a lot of stressful feelings both at home and at work. So, we’ve created our top tips to help you chillax!

Now don’t hate on us, but the last thing you want to do to cope with stress is bury it with cigarettes and alcohol. Sure, it’s a relief when you’re carefree for a while, but in the long run, you’re actually not solving anything.

“In life, there’s always a solution to a problem,”

says Professor Cary Cooper, an occupational health expert at the University of Lancaster.

The key to good stress management is building emotional resilience, regaining control of your situation, staying social, and thinking positive.

Get Active

Now some people would actually think exercise is stressful. But if that’s the case then maybe you’re exercising wrong – or at least not in the right way for you. Running on a treadmill until you look like a boiled kettle is great for some, but for others, it can add physical stress and make you feel worse.

Instead, try:

• Boxing – Excellent relief for anger, let it all out on some pads or a punchbag.
• Lifting weights – Helps you feel in control of something and get you back in the right mindset.
• Swimming – More peaceful version of running that still challenges all your muscles with less physical strain.
• Walking – Get out into nature, walk in the rain, visit somewhere you love. Just refocus your mind and calm yourself.

Seize Control

If you tell yourself – ‘I can’t do anything about this problem’ – it’s going to get worse. You have to take the reins; it might be difficult but always say you’re trying to get things back on track. If you can get a step closer to fixing the problem then that will add some serious positive reinforcement that will keep willing you forward.

Socialise

Yuk, socialising, really? It’s not for everyone, but you just might be surprised how interaction with another person, be they friend, family or stranger can help you. You can just talk about normal stuff and have a laugh which releases lots of healthy chemicals into our bodies, or you can unload some of what’s burdening you and maybe get some helpful feedback and support. If you really hate people, it’s not the end of the world, animals can also help relieve stress. They’re not great at advice but they’ll listen to you and often provide great hugs! It should be stressed that when visiting a safari park, trying to hug a lion is not advised and will increase stress greatly.

You Time

Did you know that in the UK, on average we work the longest hours in Europe? Yeah, unfair right? Well, this makes it important to set aside some time for yourself and do what makes you happy while you’re off at the weekend or in the evenings after work. It can help to book things in advance so you remain committed and don’t let your time end up compromised by work or someone else.

Self-improvement

Life can become stale. This itself can lead to stress, but to cope with stress in general learning something new or setting goals to achieve can help improve your emotional strength. By improving yourself you have one more reason to be positive. Learn a language, master an instrument, attend a class or online course of some kind.

Lend a Helping Hand

Evidence has shown us that people who help others, through activities such as volunteering or community work, become more mentally resilient.
If time is an issue, instead try to do someone a favour every day. It can be something as small as helping someone cross the road or going on a drink or lunch run for colleagues.

Work Efficiently

Your workload might look scary. The list of jobs is just never-ending. Well, that’s not true. Don’t push yourself to work overtime or weekends to keep up with work. Prioritise your tasks and complete them in order of urgency. This will start the ball rolling for completing task after task and as the days and weeks go by, you’ll keep chipping away at that list. Working over does happen, of course, there is nothing wrong with being committed, but don’t do it because you’re stressed out, do it if it’s going to help someone else, like a customer or colleague for example.

Stay Positive

Cliché or what? But it works. Don’t succumb to your own negativity. Made a mistake? You shouldn’t be sat there thinking, ‘I’m an idiot’, instead you should be putting on your problem-solving hat and fix the mistake. Sales looking a little dry this month? Don’t give up on hitting targets, think about what you can do to help get new customers through the door. By refusing to be negative, you’re preventing stress from taking hold.

Acceptance and Action

Stress can sometimes be thrust upon us unexpectedly. Maybe you missed out on a promotion or didn’t win the award you were nominated for. You have a choice at this point, and it is a choice that comes with only one correct answer. You can feel sorry for yourself and think about why it is you didn’t get it, or you can accept what’s happened and set your mind on proving everyone else wrong to doubt you. Learn from failure and take it in your stride.

Thanks for reading all our tips, we hope that at least some of them can help you destress. And remember you don’t have to be super stressed to be affected by it. Even little things can build up and boil over. Stay ahead of the stresses of life and keep your smile shining.

If you’d like any further information about any of Click Dealer’s products and services, please contact [email protected] or call us via 01782 478 220 or using our contact page.

How To Plan The Perfect Sales Event To Sell Cars Fast

When it comes to Sales events, the success lies in the foundation and preparation rather than how good the event is itself. Follow these tips and your event will see a high concentration of sales in a very short period of time.

The showroom event is a sales tactic used by automotive retailers for a lot of different reasons:

• To clear stock

• Hit targets

• Boost sales

• Increase data

• Improve retention

These events are really successful due to a number of factors but it’s important to understand that it’s not just about inviting as many people as you can to your showroom on a certain day and hoping to do a deal with them all. You need to make the event something special for the customer.

The Personal Touch

When sending out invites, make sure you do this to each individual customer personally, make them feel special and valued. Ensure there is a wide range of vehicles that will be suitable for that particular customer. Don’t invite SUV customers if your stock is heavily smaller cars, they’ll feel like they’ve wasted their time. You don’t just want a bunch of very similar SUVs either – you need a variation of specs, sizes, fuel types and colours.

You need to think about how your customer can respond to your invitation as well. It needs to be quick and easy and cater for all ages and backgrounds. Make sure details are on the invitation to RSVP using your dealerships phone number, email, website and even offer WhatsApp, Snapchat or Facebook Messenger as alternatives.

Set the Stage

Make your entrance look impressive. Maybe a red carpet, velvet ropes and some flags. It could be an idea to decide on a theme, make it go hand in hand with your brand image and keep it consistent throughout your communications leading up to the event. Make sure the environment you create encourages people to stick around and do a deal on the day. Music is great, but make sure it’s not too loud and suits a neutral taste – so keep those playlists PG! And don’t forget some food, this is sure to keep people grazing and in a good mood.

All Aboard

Brief your sales team and make sure they’re on board with the event. Give them the full list of offers available, which cars are the most important to sell and maybe encourage them to wear something different to normal. Suited and booted is a common look for a salesman, so if at your event you get some branded event t-shirts or polo tops then your sales team will stand out and be much more approachable. Setting up a sales incentive for the event is also a good idea for extra motivation.

Don’t Over Do It

When events work this well, it’s easy to think you can do them every month, or every quarter. However, doing them this frequently will massively deplete the interest levels and increase your costs. At the most you should be hosting two events per year, make sure it’s outside of any school holidays, not too close to Christmas, and bear in mind that during plate change months new car sales tend to increase, so look into jumping in before these launches to avoid losing customers to juicy new car deals.

Most importantly though, have fun with it. Give your customers a first-class experience and encourage your sales team to sell the stock you have on your forecourt and set them targets to aim for.

If you’d like any further advice on how to set up the perfect event or about any of Click Dealer’s products and services then please contact [email protected] or call us via 01782 478220 or using our contact page.

More Compliance Checks For Car Dealers

Compliance
Used car dealers face more compliance checks and red tape from next month and amid warnings that the HMRC could be looking at their tax records and the FCA introduces a new certification regime.

Accountancy firm EHY says that the Inland Revenue is focusing on the car trade and VAT and PAYE compliance among retailers. It warns that tax inspectors finding a discrepancy in one area, perhaps VAT, might mount a more thorough audit – and businesses could be landed with a six-figure bill.

A spokesman said:

“With VAT in particular, we have seen an increase in the number of compliance checks taking place within our client and contact base. It is often the case that issues identified from a VAT perspective result in an employment tax check in the following months, further increasing the risks. The total size of the potential assessments can be very significant, often six-figure sums, causing major distress for owners and management.”

New FCA regime from December 9

Dealers are also being reminded that from December 9, businesses registered with the Financial Conduct Authority as a credit broker must comply with its new Senior Managers Certification Regime.

Most independent, used car dealers will fall into what the FCA calls the Limited Scope category and if they are already a Limited Permissions Consumer Credit Firm the business can transfer to become an LSC firm.

The idea of the SMCR is to make named individuals in the business more accountable and generally raise the standards of issuing credit. The move comes just weeks after the FCA announced a crackdown on dealers’ commission on finance sales.

It has been welcomed by one company specialising in dealer training and profitability, ASE Global. Mike Jones, Chairman, said:

“The new regime offers an ideal opportunity for motor dealerships to review their FCA practices and to provide an incentive to address needs within their business” before adding “the new regime requires businesses to require individuals to take a positive responsibility for their actions.”

The FCA has an online tool for checking your firm’s category which can be found by following this link: www.fca.org.uk/decision-tree/firm-checker-tool

For more information on Click Dealer’s services, contact The Clickers on 01782 478 220. You can also reach us via [email protected] or through our contact page.

Slow September Hits Supply

Used Car Stock
Prices have stabilised as the knock-on effect of a slow September for 69-plate cars and vans in the new sector ripples through into the used market restricting the supply of stock.

Cap HPI says values in Black Book Live dropped 0.6% at the three year/60,000 mile point last month, the same as a year ago but the smallest fall of any other October since it began.

The average price drop is £100 but there are variations according to the vehicle’s age profile. Franchised retailers pushed through more pre-reg stock this September and new figures released this week from the SMMT show that Audi did 537, Peugeot 138, Citroen 34 and Vauxhall 27 for example. Coupled with short-cycle stock from Q1, values of six-months and one-year-old vehicles have taken more of a knock than older stock, dropping by -0.9% and -0.8% respectively. In cash terms, these amount to around £250 for both with petrol values again taking the biggest hit against diesel.

Derren Martin, head of valuations UK at Cap HPI, said:

“It is good to see stability return to the used car market. However, some manufacturers have continued to push pre-registrations and other short-cycle channels which inevitably can have an effect on future residual values, if cars returning into the used car market are not remarketed responsibly.”

Short cycle channels effect residuals

Diesels are still holding their popularity on the used car forecourts and selling faster than petrols. This demand has also held up their trade values which dropped by -0.4% against 0.7 for petrol and especially so in the SUV market.

There was an even bigger variation in the upper-medium sector where average diesel car values remained level but petrol variants dropped by 1.1%, or £250 at three-years-old.
Conventional petrol cars even suffered against petrol hybrids which continue to perform well against them, both in demand and percentage of list achieved too. Petrol hybrids are becoming more mainstream now and not just seen as a way of limiting the tax liability for company car drivers.

Reversing a recent trend showing an uplift in values, EVs have come under pressure as more volume reaches the used market and the supply and demand continues to find its natural balancing point.

Some big-name EVs which have seen a drop in values include the VW e-Golf, BMW i3 and Nissan Leaf, this last car in particular impacted by rising volumes of two-year-old product which have a 30KWh battery, where supply has outstripped demand.

For more information on Click Dealer’s services, contact The Clickers on 01782 478 220. You can also reach us via [email protected] or through our contact page.

Finding Additional Sales To Boost Numbers in the Current Automotive Market

Car Sales
This time of year always poses challenges to the motor trade. But there are a few ways that you can keep making a profit by making some extra sales.
Mind the Gap

Graham Filmer, Director at Rocket Performance Group says “91% of buyers buying a new car will put it on finance but that dips to around 20% in the used car market. Follow the lead – there is a huge opportunity in the used car market. Dealers have a huge opportunity in the used car finance space.”
By offering a range of finance options including a competitive low rate and subprime finance you could drastically close the gap on the new car markets finance offering.

Chase the Leads

Whether you use a lead-generation system or not, it’s still important to remember that it’s the human element managing the leads that will convert them to sales. Make sure your processes are efficient and whoever is in charge of making phone calls to your leads is dedicated to spend the time nurturing them and progressing the deal further by encouraging them to visit the dealership. Don’t let leads go cold, always jump on them while they’re hot – a can’t recall a customer ever complaining that they received a call-back too soon.

Calling the Shots

There is a reluctance to experience rejection. So naturally, we might not make as many phone calls as needed to generate enquiries. Instead, start the day by making some easier calls to existing customers and invite them in for a winter check. This gives you the chance to get them into the dealership for an hour, discuss their next car, service, maybe you’ll be able to sell them some winter tyres. But even if they leave without any extras, give them a hot drink and keep them talking and remind them of your customer service and any familiar faces.

Stretch the Deal

Mention extras to a customer when they’re paying cash and you’ll probably find it difficult to sell car mats for £100 when they’ve already seen some on eBay for £40. But when it comes to finance, you’ll see an increased willingness to have add-ons like GAP insurance and accessories when the cost is diluted over 36+ months. It effects the cost of the car so minutely the customer is much more willing to say yes. Don’t over stack a deal though. The car needs to be right for them and they need to be happy with it, but perhaps the key to that is making sure they can afford to pay for it every month.

Charging the Future

Electric cars cost more than similar-sized petrol and diesel counterparts. However, you need to sell these types of cars by focusing on the whole-life costs. Convince the customer that they’ll be saving money on fuel, reduced servicing, road tax and the car will be greener for the environment. Don’t avoid buying these types of cars because they are too expensive, their value is justified by their lower lifetime costs.

For more information on Click Dealer’s services, contact The Clickers on 01782 478 220. You can also reach us via [email protected] or through our contact page.

Used LCV Dealers Cautious As They Await Political Outcome

Van Sales
Dealers are wary of buying too much used van stock as the trade goes into the year-end and businesses await the outcome of the political situation.

Glass’s says that the latest data shows more vehicles on the wholesale market than buyers. It says September’s sales figures were down 9% on the previous month and 15% behind on a year-on-year basis.

Small and medium LCVs took the lions’ share of those vehicles which were bought wholesale with 34% each and there is an uplift in the fledgling battery van sector. Glass’s says the Peugeot Partner, the Renault Kangoo and the Ford Transit Connect were popular and average prices went up against the previous month. Average prices for Nissan’s electric eNV200 saw growth of almost 12% month on month as more businesses switch to battery-powered LCVs. However, all other model ranges saw a drop in average prices.

Glass’s describe the medium LCV market as `positive’ as it took just over a third of wholesale activity. Units sold dropped fractionally but first-time conversion rates showed a tiny growth to a healthy 82%. Sale prices also saw an improvement of more than 2.0% with average prices going through the £7,000 mark. The VW Transporter, Ford Transit Custom, Renault Trafic, Vauxhall Vivaro and Citroen Dispatch proved to be the volume sellers but only Vauxhall and Volkswagen got average price increases.

Large panel vans were slow to move and sales dropped 6% although first-time conversion rates did improve by 0.5% to 79%. As with the Medium Van sector, sale prices also saw improvement, this time by over 6.25% with average prices exceeding £6,600. The Ford Transit and VW Sprinter made up nearly 60% of all sales in this sector, with average sale prices increasing by £450 in August.

If large panel vans struggled there was even worse news for 4×4 Pickups where volume dropped for the third month in a row, this time by over 130 units, although prices went the other way on the back of younger stock. Average mileage came down by 2,500 miles and average age by 3.9 months driving average sale prices to improve by 6% and which now stand just short of £10,000.

Although sales of the Mitsubishi L200 and Nissan Navara reduced nearly 12% during the month, they still made up over 50% of all sales. The VW Amarok continues to sell when condition and miles are right with September prices improving by over 9%. Buyers continue to seek higher specification Land Rover Defenders, with the best XS and special edition models continuing to sell for exceptional prices.

On the plus side, dealers selling used LCVs fared much better than franchised retailers where sales of 69-plate units saw a spectacular fall of 24% year-on-year, the first decline of 2019 for new Light Commercial Vehicles.

For more information on Click Dealer’s services, contact The Clickers on 01782 478 220. You can also reach us via [email protected] or through our contact page.

Click’s Expert Tips For Faster Used Car Stock-turn Part One

Stock
Managing your stock effectively is straightforward in theory. Buy the right cars and sell them for a profit. Follow our advice and you can turn that theory into practice with the best possible results without breaking a sweat.

Every dealer at some point will have been stuck with a car that lingers on the forecourt a bit too long. Stock management plays a crucial part in producing profit for your sales department so mastering the art can help you keep your stock flowing through your dealership, rather than building up.

Casting a Wide Net

It will come as no surprise to that good cars sell quicker than bad ones. Think of buying the right cars for your dealership and customers as the integral clog in stock management. Remember not to fish in a small pond. Cast a wide net and visit more than just your local auction or one online car supermarket. You can not only get a better deal by shopping around, but you can also find a wider variety of cars that will stop you just buying for the sake of it. You only need to buy what sells in your area, so knowing your target market is also important.

How To Avoid Going Grey

No, I don’t mean your hair. Your overage stock needs controlling, or more importantly, removing from existence! Ideally, you shouldn’t have any overage stock on-site. Before they reach that point you should be doing what you can to get them sold. That could include an offer, making them featured on your website, do a video for social media, anything will likely help. Have a process for easily viewing the days in stock for each vehicle. It can not only help you with your buying patterns but also allow you to proactively market and sell the car before it stagnates.

Digital World

Franchises have taken their websites forward leaps and bounds, so this has put pressure on independents to follow. Making sure your website is up to modern consumer expectations is the bread, and having a strict process for advertising your stock online is the butter. You want to make sure your vehicles are shown off in the best way possible. This includes lots of photos or even better videos. We’d suggest…

  • A minimum of 12 photos.
  • Make sure the car is clean and damage-free.
  • Make sure you don’t get your reflection in the picture by standing back and zooming in if necessary.
  • Use a good quality camera – if your shots are blurred, overexposed or grainy then this just looks unprofessional.
  • Take care when choosing a backdrop for your shots – at the very least make the area tidy, but if you want to really make your process special create an area specifically for photos that you can control and brand.

That’s all for now but look out for part two later this week! For more information on Click Dealer’s services, contact The Clickers on 01782 478 220. You can also reach us via [email protected] or through our contact page.

 

Dealers Pushing Cleaner Cars Should Get More Sales

Cleaner Cars
Second hand Euro 6 diesels and EVs are taking sales from less fuel-efficient models with the latest Auto Trader sales figures showing that half of the top ten fastest sellers in September were diesels and two were electric cars.

The used car platform said the message dealers should be getting loud and clear is that there is business to be won if they stock the cars and push the eco-benefits of the cleaner, newer technologies. There is ample evidence that buyers are more willing to explore EVs in particular as the technology matures, the recharging infrastructure improves and the choice of makes and models grows although there is still a price premium for the time being.

Karolina Edwards-Smajda, Auto Trader’s director of commercial products, said that modern Euro 6 diesel cars remain a popular choice among used car buyers despite what she called “the negative rhetoric” around the emissions issue.

She added:

“We can see there is clearly a growing market for second-hand low emission vehicles. Not only are EVs consistently featuring on our Fastest Selling Index, but since October last year, we’ve seen a 59% increase in searches for electric vehicles on our marketplace.

“As awareness, performance and the necessary infrastructure improves, we can only expect to see this appetite increase.”

Last month AT reported that the average value of second-hand electric cars advertised by dealers rose 30% in August, the biggest monthly uplift it has ever recorded for zero-emission models, even as year-on-year and like for like values for other drivetrain types fell. Renault’s Zoe EV was a top ten car.

PSA Products Slow Movers

Other than the dominance of diesel and electric, there is no obvious pattern to the fastest sellers. Quickest off the forecourts was the seven-seater SEAT Alhambra (2016 diesel/auto) which on average took just 23 days to turn but the top ten list also includes the VW Polo, a Dacia and VW Touareg SUV.

At the other end of the spectrum, cars from the PSA group performed particularly badly with both Peugeot and Citroen models sticking around for too long but the Jeep Compass and SsangYong Tivoli also stayed on the forecourts for too long, tying up cash.

As a measure of the difference in dealers or finance lenders being able to get their money back, Auto Trader said the Alhambra took just 23 days to turn whereas a 2019 Tivoli, Citroen C4 Cactus and C5 Aircross needed 150.

For more information on Click Dealer’s services, contact The Clickers on 01782 478 220. You can also reach us via [email protected] or through our contact page.