5 Star Reputation – Digital Experts for Independent Dealers

How Your Dealership Can Stand Out from the Competition in 2018

New car sales have been steadily declining by five per cent each year since 2016, according to data published by the SMMT, which has led to the widespread belief that a large proportion of motor retailers will be focusing their efforts on trading used cars.

A number of large dealer groups have already expanded their used car operations and with increased competition, independent retailers may want to make sure that they have devised an effective strategy which accounts for certain challenges that an increase in used car activity will bring.

Challenges in Stock Acquisition

With such a rise in interest in used car sales, there is one big question: ‘Where is the additional stock going to come from?’ Franchised dealers are likely to have better relationships with manufacturers, which may give them a slight advantage in this respect.

The supply chain of quality used car stock is also at risk because a decrease in new car sales means that there will be less availability of part exchanges with only one previous owner and low mileage.

The Year Ahead for Independents

These changes do not necessarily mean that independent dealers are going to suffer. Typically, independent retailers are quicker when it comes to getting cars prepared and on sale, because their preparation and servicing facilities have no involvement in new car aftersales. With faster stock turn, independents can respond efficiently to changes in the market.

Overcoming Stock Issues

To stay ahead of your competition, the best thing your dealership can do is remain flexible. You may be affected by difficulties in obtaining quality stock, but as long as you are prepared to adapt, you will not lose out. If you encounter issues, try to keep an open mind and consider other approaches to stock acquisition. You may want to start looking into different wholesale funding sources now, so that you can branch out if necessary.

While there is so much rivalry between dealerships, you may not be able to make up for the higher price of acquisition with inflated screen prices – these must be kept competitive.

2018 is likely to test your dealership’s ability to cope with stock problems and competition, but if you remain vigilant and are prepared to evolve, it could well be your year!

 

For more information on how Click Dealer’s DMS can help with stock preparation, get in touch today through marketing@clickdealer.co.uk, 01782 478220 or via our contact page!



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