How do used car dealers get more profit when tied?

Most people want to run their own business – for just that reason, to make their own decisions based on sound commercial sense. You wouldn’t be the first dealer principal to wonder why you chose a route that seems to be increasingly restrictive.

If a product is too expensive for you then how on earth are you going to sell it to your customer unless your profit is so skinny or your salesman just opts for something cheaper to sell with a greater margin, but that may not be in the customers’ best interest.

Would you prefer your customer to leave the showroom with an extended warranty or a set of mats or maybe some paint protection? I know which one will help to retain the customer, bring him back for service or repair work and present a further re-solicitation opportunity. Actually, if the warranty is reasonably priced, the customer should leave with all three.

A sales manager at a franchised dealership, recently contacted me because he wanted to provide a 12 month warranty for one of his customers only to find that the price quoted by the approved warranty provider was in excess of £1700 and this was not acceptable for the customer. This resulted in no sale, and a customer without a warranty is like a profit time bomb just waiting to go off. The first sign of trouble and the vehicle is in your workshop on your ramp being repaired by your mechanic in your time and at your cost. Fortunately we were able to offer a warranty for a price that was acceptable to the customer and also make a healthy profit for the dealer.

Ease of use and flexibility are also key to providing the customer with choice, whatever the vehicle or their situation. When you want to tailor a product to your customers’ specific needs, how easy is it to get this sanctioned and at what cost or timescale?

We have fantastic offers for your customers’ and at affordable prices; it’s a tremendous opportunity to cement the first stage in the customer care cycle. We even have FREE WARRANTIES to help your customer protect their vehicles for longer and present a brilliant retention opportunity for you. The important thing is that your customers can choose based on their needs and that will always include affordability.

Our dealer base covers franchised and independent suppliers and is growing at a fast rate with no conditions or ties…we’re committed to helping you sell vehicles and increase profits. It’s simple – we help you make money.

If you would like more information on the excellent range of products available from the WMS Group, please contact our business development director Eric Stone on 07789 682502.