Three ways dealers can safeguard their bottom line - NextGear Capital Ireland
The other day, we came across an interesting guest blog post on Motor Trader written by Matt Dale, director of auction house G3 Remarketing, one of our partners. Dale shares some useful tips to help used car dealers protect their bottom line.
He starts by noting that, though the used car market remains buoyant, it is experiencing squeezed margins. This is due to the fact that consumers are growing increasingly aware of affordable PCP deals, with them often turning up to a dealer expecting to pay less for a car.
According to Dale, there are easy steps dealers can implement to ensure that their used car businesses remain profitable. These include:
1. Sourcing stock via auction
Dale explains how sourcing vehicles from an auction is a cost-effective path to market, particularly if the bidder has carried out extensive research to identify the most popular types of vehicles in their local area. However, what’s important is to choose a remarketer that closely examines and reports on the condition of cars.
2. Sourcing an affordable repair firm
To limit the likelihood of disgruntled customers or returns, it’s vital to pair up with an experienced yet affordable repair firm, to make sure your vehicles are in good mechanical order and are cosmetically sound before they take place on the forecourt.
3. Offering add-ons
Offering your customers extras when they purchase a car from you is a great way to give your profits a boost. Examples of things you could upsell include anything from paint protection and warranty, to GAP insurance or digital radio kits.
NextGear Capital has been recognised by Credit Strategy as Gamechanger of the year at the Car Finance Awards. Judges praised our use of technology and unique approach to used car stock funding, providing dealers with a simple, cost-effective way to buy and manage their stock.