We are seemingly using Brexit as an excuse for underperformance in the used car market and many so called experts suggesting that the lack of sales have nothing to do with Brexit however just like when the terrorist attack of 9/11 was screened across the world many years ago or even more recently the Scottish Independence Referendum in 2014, because these events caused fear, anxiety, confusion & uncertainty, the knock on affect was customers did not wish to part with their money for weeks and in the case of the Indy Ref, months!
So what is causing the lack of confidence in the retail car market if it’s not Brexit. Well the answer is easy, it’s the uncertainty of what is happening or not happening in Brexit.
When we all watch the carnage at Westminster it’s easy to forget that our potential customers are doing the same and when there is no certainty and indecision then it is very easy for this indecisiveness to spread throughout the country and I firmly believe this is the case.
Why take on a new commitment monthly for a bright shiny new car if you don’t know if the company you work for is going to be affected by the UK negotiating itself out of the EU or imploding as a result of a no deal Brexit?
So regardless of what the outcome, what the UK buying public need is a decent spell of certainty so they can again buy with confidence.
What can we as dealers do in the meantime to help profitability and cash flow for ourselves?
Firstly ensure that when you do get a new lead that you work very hard on converting that lead to an appointment. Make sure you chase up every enquiry and if there are less quality leads out there as we have agreed then the answer is to sell more to those customers you do have, build in more value for money and present all the products & services you as a dealer can provide.
We often are very good at selling cars but very poor at selling ourselves.
Let’s hope that Brexit is concluded soon for all our sakes but in the meantime brush up on your own negotiating skills and bring to the table your full presentation of services you will be amazed at just how easy it is to upswell.
Remember the IMDA was set up by dealers for dealers to support each other.
The IMDA have some fantastic suppliers & trainers on board to help you brush up on your skills so why not take advantage of them.
Jim Reid.
Jim Reid Vehicle sales and service