F&I Management & Training

Audi will continue to urge its 57-strong dealer network to grow used sales in 2009 to protect them from over dependence on new car sales as the market continues to tighten.

The brand is targeting an increase in sales of used Audis aged over 12 months old.

It said used cars sold to the end of September aged over a year old accounted for 59 per cent of total secondhand sales - a year-on-year increase of 2,775 units.

"We needed to grow the business of cars aged over a year old and the growth of internet usage has helped us achieve this," said Audi UK director Jeremy Hicks.

This year the brand, as an incentive, subsidised some of the preparation costs associated with retailing used cars but expects the dealers to carry the costs next year.

"We wanted it to be a focus for dealers this year and don't have any specific targets for next year - we expect dealers to take it forward," he said.

The increase helped boost profitability in the network with an average 2 per cent return on sales, compared with the national average estimated by Trevor Jones and ASE, the specialist motor trader accountancy firm, of 0.1 per cent to the end of August.

Meanwhile Audi expects new car sales this year to be slightly ahead of 2007 despite the new car market falling 9 per cent in the year-to-date.

"We're growing on the back of a strong order-bank which will make this year our biggest," said Hicks.

"We think sales will slow down by the end of the year but we expect to be slightly ahead of last year," he said.

Last year the brand broke through the 100,000 barrier with 100,864 sales, an increase of 18 per cent, which consolidated its position as the biggest selling prestige brand after BMW.

However, Hicks admitted the brand had not been unaffected by the declining market.

"I don't think anyone is immune from the downturn but strong brands tend to do better," he said.

DATED: 11.11.08

FEED: MT