From a deep dive into the data that the business is seeing all the way to staying connected with customers during extended lead times, Paul Hendy, CEO at Hendy Group revealed some of the strategies his business have been developing to remain competitive and successful from a used car performance perspective.
Speaking at the Used Car KPIs Business Briefing hosted by Auto Retail Live earlier this week (Thursday, 28 April), Hendy explained that the data available on all different sections of the used car market is helping drive value and that has sparked a significant amount of change.
He said: “It’s about getting all over the data. The richness of that data that we now have in the used vehicle space is unbelievable and our team are pricing every day. This is where the business has changed for us in the used space at retail.”
Part exchanges, lead times and constant contact
The Hendy Group’s chief executive outlines the different ways in which the business sources used car stock and how that particular strategy has been impacted by external factors.
One of those factors is the extended lead times that the industry is seeing and for many brands this is a challenge that is here to stay. Earlier in April, Car Dealer published a story on the various lead times that are currently associated with some of the brands that Hendy Group represents – including Jaguar Land Rover and Nissan.
Focusing on part-exchanges when customers buy a new car, Hendy admitted this has become harder but there is huge value in getting it right. Communication is the key to long-term success here.
“The part exchange ratio has dropped a little and got harder, but we work very hard on trying to maintain contact with the customer that we want the part exchange. Those longer lead times clearly gives the customer the opportunity to do something like sell it privately or sell it to a family member.
“We are in constant contact with that customer while they are on that journey to ensure the part exchange remains a feature of the deal. There is a danger that we won’t get hold of it but we need it,” he adds.
It was reported late last year that the Hendy Group delivered a 58.1% uplift in pre-tax profits and 27.2% turnover growth in the period to December 2021.
While driving success from a used car perspective has changed and some of the challenges today are new ones, businesses like Hendy Group clearly have a plan to stay on top. Understanding the data around consumer behaviour and ensuring that all roads to used car stock remain clear will undoubtedly continue to drive business success in 2023.
One way to maintain contact with customers between order and handover is via the AutoBuzz platform. AutoBuzz automated communication to each and every customer, keeps them excited about the prospect of a new vehicle and drives up revenue by presenting profitable products and services at the right time while the customer waits.
Get in touch today to arrange a demo and find out how it would work for your automotive retail business.
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