Photo by Barni1
In many years who sells new cars can sustain especially with several collateral activities, which in the end, analysing the balance sheets, are not at all collateral.
Warehouse, Workshop, Bodywork, Financial Services and Insurance represent much more than “forced activities” to have a mandate.
The quickest to look around have turned their company into a multitude of activities on their own or delegated to third parties.
Just to understand Wrapping, Stamp Remover, Internal Regeneration, Tunning, Darkening Glasses, Tires Storage, Short and Long-term Rental, Telematics Services.
Despite all this effort, most customers have little confidence in those who sell and repair cars.
Do you want an incontrovertible data, at least for sales?
The volume of used cars traded between individuals is significantly higher than those sold by retailers to individuals.
In simpler words: “I prefer to buy a car from a perfect stranger with no guarantee, rather than joining a dealer and having guarantees and services“.
Photo by baristahoon
What does it mean in missed business?
In 2015 (in Italy), 1,574,872 mln new cars were registered.
In the same year, 2.625.000 mln of cars were exchanged between individuals and ONLY 2.010.000 mln of mini change of ownership (temporary transfer); for a total of 4,635,000 mln used cars that have changed ownership.
You will realize that it is a matter of millions of missing funding, administrative practices, shop floor steps, generic sales and loyalty opportunities.
If you consider that a large part of the used cars that dealers sell (official or non-official dealers) belong to their exclusive channel (eg km0, demo, remarketing and rental buy-backs) you will realize that more than 70 % of the market is in private hands.
The aspect that must make us reflect is the risk to which the private client is subjected, anything to avoid to come to a salon …
The same thing is happening in the after sales field.
Photo by Wies_van_Erp
The web is transforming the automotive, not so much in the sale of new vehicles that always needs personal contact, but above all in the sale of the used cars and, in a destructive way, even in the after-sales service.
In fact, it is in the post-sale that entire lines of business are distorted; just think of tires.
Now they are bought on the web and if it is not so, you go and negotiate with the tire shopper with the price based on the one fixed by the online distributors; the latter always more transnational.
The last frontiers are the online spare parts; both those of equivalent brand and those of rotation.
There are portals that have nothing on the management of physical stores with the availability of millions of pieces, easily available.
But once the clutch or the tires have been taken, will your dealer assemble them by negotiating only the labour?
Well, these distributors are organized with assembly networks where the customer has his purchase directly sent and, still in the order phase, he knows the exact price.
Many after sales operators have called themselves off of this circle because they see their relationship of loyalty and a reduction in margins disqualified.
Unfortunately these are changes that cannot be hindered, especially in a market where the average age of the cars is close to 10 years of usage and a car, which is 10 years old, is repaired only in an economic way.
Photo by luca.sartoni
There are, even in this apparently denigrating situation, two positive factors that shouldnÕt be underestimated:
- in any case I create a relationship with a client and I let me know;
- overturning the Italian bad aspect that is the piece of iron / rubber has a value often greater than the manpower.
Yes, because let’s face it, there was often an abuse with the high prices of spare parts both against the great Work Providers and the individual customer and the work was sold off; typical of the Italian market even well beyond the automotive sector.
Those who will fail to make this passage, that is to recover the dignity of the value of their work, will lose even this last train.
And more, the dealers that represent a brand will be the ones most penalised in this situation.
To be able to benefit from this new trend we will need to create a new line with dedicated costs and organizations.
Because in the end the real business is to turn the occasional customer in a future client even of the new or second-hand business.
Translated by Federica Izzo
