MAXIMISING opportunities in the used car sector is likely to be essential to maximising franchise dealer profitability in 2020.
That’s according to Epyx, the company behind the 1link Disposal Network remarketing platform, which says the new car market is unlikely to stage a recovery but used demand should stay consistent.
Vicky Gardner, pictured, head of remarketing at Epyx, said: ‘Whatever the outcomes of the current macroeconomic issues affecting the car market, ranging from the general election to Brexit, there is unlikely to be any substantial increase in new car sales.
‘However, one of the lessons of the last recession is just how resilient used car sales remain in tough times. The fact is that people need cars, and in a situation when they are uneasy with buying new, they will turn to used because of the value they offer.
‘In a market that is probably going to be characterised by more uncertainty and low consumer confidence, it is very clear that the franchise dealers who are able to offer the most effective used car propositions are likely to be the ones who will prosper most.’
She added that there had been a noticeable drive over the past year towards franchise dealers working to bring greater efficiency to their used car stock purchasing.
‘This is very much part of a longer-term trend, but fewer and fewer dealers are leaving the office to buy. There is an increasing accent on buying ready-to-retail stock, presenting it in the best condition online and moving it on quickly.
‘If anything, we expect this to intensify in 2020. The market will remain both busy and competitive, so there will be an accent on buying at the right price and selling within stock limit times.’