The first half of 2020 resulted in plunging used automotive sales with historic lows. This was largely due to the social restrictions and lack of driving all together. Buyers were unable to visit showrooms and at the same time, encouraged to spend time outdoors. Bikes ended up being the all-time high seller, leaving car sales in the dust. But in 2021, vehicle sales have taken a sharp turn toward record sales.
The industry did suffer a bit, but it was able to recover and maintain market stability. This was aided largely by the consumer shift towards:
- Increased home delivery and care services requiring light commercial vehicles
- Personal mobility preference over public and shared transportation
More vans and other delivery type light commercial vehicles were purchased over the past 18 months than in previous years having much to do with the increased social distancing guidelines. Additionally, people started wanting to use their own personal vehicle for safety reasons, avoiding viral contact and transmission. In a recent report by Cazana’s Analytics team, used vehicle sales in general have seen a continuous climb over the past year. The team also discovered Vauxhall is the leading manufacturer with Ford being a very close second. Many reports indicate buyers want Vauxhall for their economical light commercial vehicles as well as their fun and innovative options.
What does this mean for dealerships?
It’s important to know how and why vehicles are selling but also new safety and environmentally friendly features they may be fitted with. Dealerships should be able to see the full picture of buying trends and unique features of each individual vehicle to increase stock turnover and profitability. The best way to achieve this is with facts. Retail data has grown in popularity. It’s proven to be the most effective way of assessing large data sets for buying habits and fair pricing. It also provides a realistic and simple way of controlling vehicle stock.
When dealerships are armed with complete information about a vehicle, they can then strategize marketing efforts and inventory control in an intelligent way. More importantly, they project integrity and transparency to potential buyers. This then creates a natural way of growing profits and a loyal customer base. Dealerships will be able to sustain just about any economic struggle if they know how, when and why vehicles sell.
This is where Cazana can help dealerships See the Full Picture.
Cazana products are designed for the automotive industry. They help dealers identify the right stock to buy and how to price fairly for speedy sales. Cazana’s whole market data offers an unbiased data driven view allowing retailers to see the full picture of the entire market. A few of our more popular product choices for dealerships are:
- Cazana Multi is a powerful enterprise tool that interrogates data and creates a bulk vehicle list for Excel and CSV formats. Multi allows users to upload thousands of rows of vehicles on their portfolio, in stock or that they are considering buying. It outputs real-time valuation and vehicle information against every row. Multi is heavily used in the automotive industry to assess stock and portfolio values within their current workflows without the requirement to integrate APIs.
- Stockview provides a simple way for used car dealerships to track their pricing performance at a stock level, to see how they are priced against the market, and to access pricing recommendations aimed at maximising profit, whilst staying competitive.
- Cazana Companion offers dealerships a tailored valuation for businesses like franchised dealers, independent dealers, or a supermarket. Retailers can also get a full history check on the vehicle in question as well as a clear indication of days to sale against similar vehicles in the market.
Simply put, Cazana saves sales and pricing teams valuable time. Our products take away the heavy lifting by accurately valuing large lists of vehicles in minutes. This allows teams to concentrate on selling cars and attracting new loyal customers.
But don’t just take our word for it. Paul Harding, Managing Director at Centurian Automotive has been using Cazana Companion to help him better price and buy vehicles. He has this to say about Companion:
“We use Cazana Companion on a daily, even hourly, basis, predominantly for our own pricing, purchasing, and for purchasing cars from customers (part exchanges). In customer-facing situations, we open up Companion and we show the customer how much their car is worth today at a retail price and how much the trade price is. The tool allows us to explain if we are able to retail the car or if it is going straight to auction and what the price we are likely to achieve is, thereby ensuring the customer has trust in us and the product.
What Companion has enabled us to do is save a significant amount of time and be more accurate with our valuations. Nobody trades from books anymore. Previously, we would have searched the marketplace to compare the vehicles we are purchasing, which to even the most professional dealers is a long, laborious and imprecise process.
The “Days to Sale” metric in the tool is of huge importance to us, irrelevant of the margin you have, stockturn is the most important thing and from the point of view of valuing the car it’s fantastic and gives us an insight into the amount of time we will sit on that car and the amount of depreciation the car will incur. It also allows us to compare our vehicles to others in the marketplace at the click of a button to make sure our stock is priced appropriately.
From a bulk valuing point of view, when we buy our trade vehicles the ability to value multiple vehicles in a very short period of time is essential in order to snap up auction bargains! Companion is working really well for us and has done over quite a long period of time now and I honestly feel like now we cannot do without the product.”
You can read the full Centurian Automotive case study or to learn more about how we can support your individual business needs, get in touch with Hannah Brawn and the team today.