The industry tells us that prices will never be as low again so what’s stopping us from buying in 2009 (other than Economics of course…)?
The RMI thinks it’s the scarcity of finance so they are planning to bridge that gap as a bank of sorts. A wise move and likely to be profitable when sorted.
Despite the recession Ford, Vauxhall, Lexus, Toyota and other manufacturers are quietly planning to raise new car prices on their most popular models; another reason to buy now for less than later, when they’ll cost more ;-).
Used car sales are booming – ‘phenomenal’ reports Trident Garages and auction houses are doing especially well says Honest John.
Nothing like online auctions to reach a bigger audience (think eBay) and get a better price than an ad in the local paper – all allowing competition to take its natural course.
And perhaps the government might support the industry’s suggestion of rewarding motorists financially so they trade in an older car for a new one (referred to as scrappage by the trade – what a ghastly word) to shore up our industry and jobs at risk.
Prior to 09 sales this month many car dealerships have been surviving on used car sales and aftersales alone this year.
Thank goodness there were no ‘head in the sand’, ‘can’t afford to spend anything’ or ‘we don’t need to discount’ tactics suggested in the briefing meeting reported in this week’s AM Magazine. All good and constructive ideas instead.
All delegates agreed that customers expect a good deal in a recession, as evidenced by High Street businesses. Hence the fantastic new and pre registered car deals to be found online.
And more competition between franchised dealerships and independents when it comes to car servicing; this is such a great opportunity to develop the relationship of trust needed to tempt her back into the showroom when the time is right.
Ridgeway Group, for example, is actively price-matching with independents re tyres, exhausts and batteries. That’s good and once again, the customer will be the winner in terms of price and service levels.
Sadly I am not convinced that any 10% aftersales discount card will buy dealer loyalty on its own, but if it comes with added value extras, fixed price servicing menus and the opportunity to check out prices and compare service levels online, then I am confident that more women drivers, for starters, will associate dealerships with providing value for money service levels than they may have done in the past.
Clearly to afford discounts, businesses need to save on their operating costs in some way. I was fascinated to read that, apparently, training costs could be reduced if better employees were recruited in the first place!
Yes I wholeheartedly agree with recruiting the best person for the job (male or female) but I don’t think training is any basis for cost cutting because everyone needs education to keep up with the latest trends and cutting edge technology/knowledge.
And, if it turns out like the Marketing industry in time, those of us with Chartered Marketer and other CIM qualifications are earning more than others – the reality is that the best staff will cost the motor industry more to emply as well.
The bright light on the industry horizon, from FOXY’s point of view, is that the female friendly garages and dealerships perform to higher service levels than those that aren’t (because most women are more demanding shoppers than men) so female friendly car sales staff (female or male) can be expected to be more successful in showrooms whether they are selling to men or women.
That’s fine by me.
FOXY
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