24 May 2021

The long-awaited showroom opening of 12 April has now passed and, as we have previously discussed in this feature and as other motor retailers have stated, we can expect an uplift in used car activity, but not the deluge of customers that some in the sector have forecast.

To ensure that we maximise sales and customer CSI in the coming months we will need to be mindful that dealership staff will be a mix of those that have been working throughout the Covid-19 lockdown periods and those who have spent a large amount of this time on furlough.

Figures from the SMMT in February confirmed that 65% of franchised dealers still had staff on furlough. As a result of this dynamic we will need to be mindful of staff integration with a particular emphasis on sales departments including both car sales and F&I.

Familiarise with legislation updates

During the last year, various sales and FCA compliance updates have come into force and there may be a requirement to update sales staff of any amendments and formalise future sales process requirements.

Staff will need to be familiar with distance selling regulations as there will still be an extent of home delivery of used cars, which are in turn purchased under distance selling regulations. Sales and finance staff will also need to be fully conversant with finance commission structures along with updated demands and needs protocol when offering consumer finance.

Unfortunately, due to ever increasing FCA legislation surrounding finance selling, a number of motor retailers have chosen to completely automate the finance selling process for fear of falling foul of the legislations. However, the reverse of this action is the more pro-active route. This sees the F&I teams, subject to the correct training and having completed detailed customer demands and needs profiles, assume a more financial advisory role.

Sales training and leadership

Refresher sales training could work well in these times in order to refocus staff and advise them of company objectives, along with assisting staff with their challenges, to ensure that business performance is maximised. This is where leadership skills will be required and a team spirit re developed. To quote the business advisor and author Simon Sinek: “Leadership is not about being in charge – it’s about developing the people in your charge.”

Above all the sales process needs to be slick and easy – there are 5,000 franchised dealers in the UK plus independents and as such the used car motoring consumer has considerable choice.

Used car stock holding

During lockdown there has been a modest but healthy volume of used car sales for most retailers, via home delivery and click and collect facilities. Used car buying of quality cars has been a little more challenging due to lower than expected new car sales figures.

Whilst March was 11.5% up on March 2020 with 284,000 new cars registered, the UK is still 60,000 new car registrations down on the same period at this point in 2020. In light of these overall figures it will be imperative that your used car buyer(s) are proactive in used car supply chain and model mix.

[YOUR ACTION PLAN]

• Furloughed staff need to be on boarded as soon as possible
• Ensure all customer facing staff are 2021 legislation aware and compliant
• Good staff leadership and engagement will bring considerable success
• Efficient used car buying supply chain can’t be over emphasised
• Q2 and Q3 success will define this upside-down year

Tags: used cars