Having good products at competitive prices at the entry side of the new-vehicle market is half the battle won. The other part is getting enough stock.
“Despite the stock dilemma facing us and every car dealer the world over, we are doing well, despite the unusual circumstances we find ourselves in,” says Peet van Staden, Manager at Brits Renault.
“With products like the new Kiger, Triber and Kwid we attract a lot of first-time car buyers. Our Duster also remains a favourite with buyers. With the arrival in the near future of vehicles like the new Clio and Captur, our offering in more segments will be even stronger,” Peet tells Dealerfloor.
“With a large number of first-time vehicle owners, customer retention is a serious and crucial part of our business. The key to customer retention is first-class service in all aspects of the buying and after-sales experience for new-vehicle owners.
“In this regard, our sales staff assist with the booking in of vehicles for services and maintenance to keep the contact with the customer constant. Especially with first-time buyers, who make up to about 70% of buyers at the entry-level side, this creates peace of mind for customers and forms the basis for a long and profitable relationship.
“We make every effort to retain customers for our after-sales department when the warranty and service or maintenance plans have expired. With regular advertisements, a favourable pricing structure, we communicate the advantages of servicing with us via SMS and social media to Renault owners. Our workshop is busy and booked out in advance, which is a good sign for business.
“As a dealership, we are categorised as Small, but one never knows what the future holds and the possibility of being classified as a Medium dealership is a goal we strive for. We are doing all the right things and growing the business, which will earn us recognition as one of the top dealership for the brand,” he says.
“On the used side, we share it with a sister dealership in our group and although the same problems in terms of stock shortages are also a dominant factor in the used car business, we are doing well,” Peet tells Dealerfloor.
And what does the future hold? “I think the situation will improve next year. No-one can say for certain when things will change, but all players in the business have by now learnt how to adapt and accommodate the changed environment in which we have to sell cars,” Peet concludes.
JLR reports growing demand for plug-in hybrid models, with global retail sales for the first half of the financial year up 29% compared to the prior year, as more customers use the technology as a stepping stone towards battery electric vehicles (BEV).
Zero Carbon Charge (CHARGE) called on the Minister of Finance, Enoch Godongwana, to announce measures in his Medium-Term Budget Policy Statement (MTBPS) to ensure that a transition to Electric Vehicles (EVs) will result in the reduction of carbon emissions in the country.
The ratio of used to new vehicles financed increased in the second quarter of this year, indicating a growing consumer preference for used vehicles, according to TransUnion South Africa.
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If you are not taking care of your customer, your competitor will.
Bob Hooey
“Transformation in the motor industry is deeply complex, requiring innovative approaches to meet evolving standards and customer expectations,” says Craig Absalom, co-founder of The Cadet.
Heinie Boshoff’s (main photo) automotive career turned a full circle when he became the co-owner and a director of the Benba Motor Group in the Western Cape a couple of years ago. And he has never looked back after taking an opportunity presented to him after school and making the most of it.
Here are a few basic ideas that should have a positive impact on gross profit (GP). Most of you are familiar with them but knowing them does not mean they are effectively applied. These are areas that I believe should form part of your daily, weekly or monthly reviews.
