Dealers today face a very different landscape compared with even a few years ago.
With steady growth returning to the market and the cost of vehicles stabilising, independent car dealers have a real opportunity to be proactive and focus on the areas of their business that will move the needle going into H2.
To discuss making the most of the rest of the year, John Hood, general manager at Auction4Cars.com shares his top areas of focus:
- Choose your stock wisely
“Stock supply has been steady for a while in the used car market.” Explains John. “Dealers can now focus on fool-proofing their sourcing strategy for the rest of the year.
“Cars seeing the strongest consumer demand are between 4 and 8 years old, according to the SMMT. These cars are the ideal middle ground for many customers. They’re more affordable and usually out of warranty, often making them less costly to buy and insure. It also provides dealers with the opportunity to sell a warranty product.
“This stock is in high demand, so it’s worth looking beyond your usual auction platforms to make sure you are maximising your chances of getting the right stock for your forecourt.
“Given that one in four cars sold last year was fully electric, demand is clearly rising for EVs. I’d recommend part of your strategy focuses on hybrids and EVs to give you a mix of fuel types on your forecourt.*
“Look at which EV models sell in your region, what customers are searching for, and the models that are increasing in demand. While bringing in EVs, hybrid and petrol cars are safe and consistent earners for dealers and give you a strong foundation while you build confidence around EVs.”
- Go digital
“Two years ago, more than 90% of dealers considered digital platforms essential for getting their stock. Today, they’re a must for dealers to see a true representation of the stock available. **
“Digital platforms such as online auctions allow you to bid on as many vehicles as you want at one time. You can save a lot of time and money by setting a maximum bid amount or turning on an automated bidding service like proxy bidding.
“Proxy bidding allows you to remain active in an auction without being on your phone or computer. It sticks to a budget pre-set by the dealer, meaning dealers don’t need to worry about overspending and can be bidding on multiple vehicles at once.
“I would suggest never relying fully on traditional auctions. In-person auctions move at a slower pace than their digital counterparts, as online platforms can run hundreds of auctions at once. If you’re not looking at online options, you might be missing out on a lot of good stock.”
- Invest in your customer experience
“Fast response times are vital for busy customers. Customers really value good communication, transparency and a tailored car-buying experience. It’s how smaller independent dealers can compete and sometime outperform larger competitors.
“Aftersales is just as important as the buying process. Make sure service plans and warranties are all in place, along with any loyalty incentives you can offer. A quick follow up call and regular check-ins via email show you care beyond the sale. Little actions like this can help your independent business stand out among local competition and help you to earn more repeat business.”
- Streamline your operations
“Smooth processes can save you valuable time and money that you can invest in sourcing the best stock faster and get them listed without delays. Streamlining also cuts wasted time and overheads that’ll directly protect your margin.
“A good starting point is tightening your appraisal process. Use a consistent checklist and standardised valuations to make quicker decisions so you don’t miss out on strong stock.
“Speeding up the reconditioning process is another time saver. Setting clear turnaround targets keeps cars moving and reduces delays. If you aim to get cars listed on the same day they’re prepped, it’ll result in faster sales and better cash flow.
“If you haven’t already, look for ways to automate admin with digital invoicing and stock tools. It’s one of the quickest wins for independents by giving you back time. Automation cuts out manual errors and helps keep consistency across your business.”
For more information and to browse the hundreds of live auctions, visit: https://www.auction4cars.com/
Sources
*https://www.smmt.co.uk/vehicle-data/car-registrations/
**Motorway – “The State of the Motor Trade” (Dealer Research Report, 2024)
