David Inglis
incremental profit generator

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Used Car Programme

Used Cars is all about Presentation. That's the presentation of the product and presentation of the deal to the customer.

Every used car should be absolutely immaculate, not only on the outside, but on the inside, under the bonnet and in the boot too.

Each vehicle should always have a complete service history, start first time and drive perfectly.  Each should be the best used car that customer's going to drive and buy TODAY!

So how can Retailers become better at selling Used Cars?

Well here's a few tips:

Presentation of the Deal to the Customer

In every used car being traded-in, you've got to allow yourself at least
£1,500 in the car for profit, stocking cost, depreciation, cleaning and marketing. On top of that £1,500, you need to add conditioning costs - the next service due in a month's time might cost you five hundred quid!

If you don't allow yourself that sort of margin at the start - you're simply not purchasing the vehicle right.

Is the car clean, fully serviced and is it a vehicle you want to sell.  Does the vehicle drive as it should and if you are in any doubt, have a Technician check-it over.

You also need to be make your mind up at an early stage whether you are going to trade the car immediately or sell it as a used car. Remember, if you don't think you can sell the car within 90-days, you've got to trade it immediately.

And the best way of dealing with a customer about the low price you're about to give them is - BE HONEST!!

Advise them of all the costs of having their car on your display:

- the cost of financing their car
the cost of re-conditioning their car
- the cost to regularly wash and clean their car
- the cost to advertise and market their car
- the cost of monthly depreciation on their car
- and after all that, the cost of perhaps trading their car

After you have told them the TRUTH about their car, which the majority of customers will understand - even they don't want to own it now!

As a result of your honesty and PRESENTATION of the Deal, they will understand your position and be more sympathetic toward you and thus gain their confidence.

Presentation of the Product

OK, you've decided to sell the vehicle and you have 90-days to do it, so you need that car to be immaculately cleaned and presented within your used car display as soon as possible - no more than 48 hours!

Now when the car is gleaming inside and out and you display the sticker price, the local guy you 'stole the car from' isn't going to be so upset is he - you've already told him of your costs and of course the need to make some profit into the bargain.

But the secret here is all about PRESENTATION - every used car must be immaculately clean and ready to go!

On my way to work each morning I would pass what I'd call the best Independent Used Car Specialist in my local area and every morning without fail (weather permitting of course) their car cleaners would be washing every one of their 
displayed vehicles.

Now be honest with me here, how many franchised Retailers do you see open at 7am in the morning, let alone washing all their used cars at that time?

Just having some activity within the used car display creates attention too - that's why it's important to regularly move the displayed vehicles thus giving the display a 'fresh face'.

And here's the main the difference between a Franchised Retailer and an Independent Used Car Specialist - can you spot the difference below?

The Franchised Retailer refers to 'the Used Cars', 'the Used Car Display' and 'the Used Car Stock'

Whereas, the Independent Used Car Specialist will say, 'my Used Cars', 'my Used Car Display' and 'my Used Car Stock'

You see, until a Franchised Retailer really begins to PRESENT their used cars like they were trying to sell their own personal car, Independent Used Car Specialists are always going to exist.

So, does your Used Car Programme install the 'mindset' of presenting their used cars like they were your own?

  Author: David Inglis

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  Urban Science
     Int. (UK)

 Castrol Business
     Services (UK)

 ALSS/TUV GmbH

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