By Tony Willard
Dealers preparing for plate-change September after the best half-year for new car registrations since 2005 have been urged to retain a focus on their used car sales.
Kirk Franks, head of national sales at Alphera UK, said: “With the new car market being driven by consumer offers, it is going to be a requirement of dealers to come up with inventive and creative financial offers on used cars. The price differential and the offer need to be attractive enough to drive showroom and internet traffic on used stock.”
Franks, left, said car buyers were researching purchases ever more thoroughly and this was where a flexible multi-product offering could drive sales traffic. “Our franchise partners who actively revise and review their used car strategy are seeing growing penetration in this segment,” he said.
Alphera expects the momentum in the new car market to continue through the 64-plate change with further offers and incentives in manufacturer-supported finance.
Franks said: “It will be interesting to see if offers will become more diverse around what is happening with the Financial Conduct Authority (FCA) to cover all products and give consumers greater choice and flexibility.”
Samantha Cripps, UK head of sales development at Alphera Financial Services, said: “With the rapid growth in new car sales we have been experiencing, there must also come a plateau. The only way the industry can sustain consumer interest will be through tailor-made, flexible, quality deals.” Cripps said motor finance providers and dealers would need to get closer to customers and understand their requirements if progress was to be maintained.
'Treating customers fairly is on everyone's agenda'
“With new legislation from the FCA placing a great deal of importance on treating customers fairly (TCF), this will be a topic on everyone’s agenda,” she said.
Jim Cross - 31/07/2014 17:16
The price differentiator encompassed with high New Car Registration Targets suggests the used car customer can easily migrate into the new car cycle, Manufacturers give unrealistic targets forcing the dealer network to sacrifice profit in a Used Car to achieve the New Car Target/Fast Start..