BLOG: Success on a Plate – Getting ‘65’ Ready - NextGear Capital Ireland
Whilst for many people August represents the time to kick back and relax on holiday, most of us involved in motor retailing are getting ready for the vital September – November peak. It is that huge burst of activity that represents the big push towards both quarterly and annual targets. At NextGear Capital, we are fully prepared, the whole team, our partners and technology is geared to a simple goal – helping our dealers to stock more and then sell more!
In a little over one year, we have moved from our first dealer to our 600th, and we have plenty of ambition in reserve for further growth. Central to our success has been a freshness in how we do things and how we help. So, I thought we’d give some fresh thought to the year’s most exciting trading period.
The Economic Outlook is Encouraging
40 successive months of growth in new car sales represents a staggering performance. Initially driven by consumer activity, now the market is seeing business joining the fray. The overall mood of the UK is one of improving confidence:
- UK consumer confidence climbed in June to its highest level since January 2000, Optimism about personal finances as well as the wider economy, rose and the researcher’s report revealed that consumers were becoming more willing to splash out on big ticket items (GfK)
- SME confidence is up – 57% expect turnover growth in the next 12 months, with more than a third expecting at least six per cent growth. (Ipsos Mori)
- Britain’s economy grew faster than initially thought in the opening months of this year and the OECD is projecting that the economy growth will continue at a solid pace in 2015 and 2016, boosted by domestic demand. The medium term outlook for the motor trade is a positive one. (Office for National Statistics & Office for Organisation for Economic Co-operation and Development)
Improving Used Car Supply
Stock shortages in some product segments have diminished. The impact of PCPs in driving new sales is now feeding through to used stock. Our auction partners are now seeing a good pipeline of quality 2 – 4 year old stock. Over time, this will inevitably see a reversal in the age of the wider car parc. People want younger stock and it seems they now have the confidence and capacity to buy it.
What is certainly clear is that there are buyers for used stock. Glasses’ latest editorial noted “buyers are back in the auction halls in increased numbers but are still selective on condition and specification.” The point on condition is a reflection that buyers are looking for showroom ready stock free of preparation costs. They want to turn around stock fast - something vendors need to be aware of as they ship cars into auction in the weeks ahead.
Stock Funding is available
Over the last year, we have helped over 600 dealers to buy over £193 million of used vehicle stock. These dealers really are helping us to achieve our ‘stock more’ goal and because they keep coming back they are evidently selling more as well.
Now is the time for dealers of all sizes to start planning their used vehicle stock funding arrangements. They can so on the basis of an encouraging economic outlook.
& finally a little ‘65’ fun
- Blue Sapphire – the wedding anniversary symbol for a 65th anniversary
- 65 years ago the UK No 1 song was Bewitched (Bothered and Bewildered) – although then sales were measured by sheet music sales rather than records (or downloads!)
- September 1st 1965’s No 1 was Sonny & Cher ‘You got me babe’
- In 1965 just 1,098,887 new vehicles were sold in the UK; the top selling model was the Austin Morris 1100
- In 1965, Corgi Toys introduced the all-time best selling model car, James Bond's Aston Martin DB5 from the film Goldfinger
- In the Eurovision song Contest the UK …didn’t win - Kathy Kirby was second with ‘I belong’
- Formula 1 celebrates its 65th anniversary in 2015 - Giuseppe Farina won it in an Alfa Romeo
From all of us NextGear Capital, our very best wishes for the 65 plate sales!
Thanks for reading.