Car dealers in the UK should not overlook the profits that can be made by offering part exchanges, an industry expert has advised.
Steve McBrierty, CEO of car valeting company Motorclean, has been keen to point out that as the new car market booms – as has been well reported – there is money to be made in other areas. Namely, he says learning how to take traded in older stock, refurbish it and market it in the right way could result in a sizeable monetary boost for car dealers.
Individual car traders and businesses alike stand to profit from this approach. It is important however that they have a road risks insurance policy to allow them to drive the older stock and ensure that the used cars are running smoothly as they look to sell them on. Furthermore, for dealerships storing cars at a set business premises, combined motor trade insurance will be essential for protecting the stock against damage or theft while it sits on the forecourt.
Rob Barr, a director of the Vehicle Remarketing Association, explained to AM-Online that commercial judgement should rely less on age or mileage and instead dealers should realise that the cost of refurbishment “can be offset against the purchase price and the final stand-in price still reflects good value”.
While the focus has been largely on the new car market which is growing apace, the knock-on effect is that many people are looking to trade in their old cars to finance a new purchase. The message here is clear: car dealers should be ready to take on these used cars and make a good profit by performing refurbishment work on them before then marketing them back out to customers.