In common with most companies operating in the used car sector, the conversations we at iVendi are currently having with dealers centre on the subject of stock shortages.
The theme of these dialogues tends to be similar. While margins per unit remain healthy and may even be rising, there is growing concern there will simply be fewer sales in the next few months because of the difficulty of getting hold of almost every kind of vehicle.
This is fuelling an increasing recognition among dealers that they need to cover every potential profit base offered by the total sale – so new findings that and other aftersales products digitally are significant, especially as the same research also shows that one in three used car buyers will take up the offer.
Analysis from iVendi reveals that, in the 12 month period ending in June, only 21.9 per cent of dealers included aftersales products within propositions they sent to potential used vehicle buyers using the company’s Digital Deal product. However, over the same period, 32.3 per cent of those consumers opted to buy at least one product where they were included.
At a point in time when volume used vehicle sales are falling, generating the maximum profitability from each sale is crucial for dealers. Therefore, it seems like a simple but effective step to include products such as warranties, GAP insurance, paint protection, tyre insurance and MoT insurance within all of the digital propositions they issue.
Digital Deals are part of iVendi’s TRANSACT product, which was launched in April 2020, near the start of the pandemic, and has since been widely adopted by iVendi’s customer base. Its ethos is to allow a tailored proposition to be created and sent to a potential buyer as the basis for an online negotiation designed to replicate the subtleties of an in-person dialogue.
Aftersales products can be easily integrated as an element of the dealer offering in literally seconds. Interestingly, as a result of the general rethink in motor retail that was prompted by the pandemic, we have found this introduction near to the start of the sale, rather than being treated as an add-on towards the end of the customer journey, is essential.
Customers are interested in buying these products but they are often treated as an afterthought by the dealer, offered at a point when weariness with the whole sales process has set in. Car buyers see the entire purchase as a package, and ensuring that package is fully formed as early as possible in the sales process is crucial.
iVendi also offers a range of online videos that explain the advantages of aftersales products to customers as a further aid to digital sales. These can play a crucial role in helping car buyers understand the benefits. The most often-viewed is for GAP insurance which shows, we believe, the seriousness with which customers are engaging with the subject.
Founded in 2009, iVendi is the market leader in motor retail technology both in the UK and internationally. With a modular product range which engages consumers, converts buyers and manages transactions, iVendi technology interacts with around five million consumers every month and thousands of motor retailers, manufacturers and finance providers. The company is based in Colwyn Bay.