Franchise dealer profitability in 2020 is dependent on maximising the used car sector, according to epyx.
According to epyx, the new car market is unlikely to stage a recovery over the course of the next year, but used demand should remain stable.
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Vicky Gardner, head of remarketing at epyx said: “Whatever the outcomes of the current macroeconomic issues affecting the car market, ranging from the general election to Brexit, there is unlikely to be any substantial increase in new car sales.
“However, one of the lessons of the last recession is just how resilient used car sales remain in tough times. The fact is that people need cars and , in a situation when they are uneasy with buying new, they will turn to used because of the value they offer,
“In a market that is probably going to be characterised by more uncertainty and low consumer confidence, it is very clear that it is the franchise dealers who are able to offer the most effective used car propositions are likely to be the ones who will prosper most,” she added.
Gardner said there has been a drive in the last year towards franchise dealers working to bring greater efficiency to their used car stock purchasing.
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By GlobalData“This is very much parts of a longer term trend, but fewer and fewer dealers are leaving the office to buy. There is an increasing accent on buying at the right price and selling within stock limits,” she said.
She said an extension of this trend was that franchise dealers were increasingly asking epyx for advice on how to get hold of the stock they need within the online marketplace.
“Because our solution is platform-based, there is a general perception that every part of our process takes place online. This is true when it comes to bidding and purchasing but we have invested heavily in account management over the last few years and one of the areas in which we are scoring highly is offering expert human support to dealers by phone or in person.
“Knowing how to get the most out of 1link Disposal Network and find the stock you need is something that is very much underlined by us telling or showing you how. We’ll also be unveiling some major enhancements to the platform in the New Year, which should add greatly to its user appeal and usefulness for dealers,” she concluded.
