F&I Management & Training

RAC Warranty said the scarcity of used car stock is hitting volumes of sales and that dealers need to compensate by looking at ways of increasing yield - especially point of sale F&I products such as warranties and Gap insurance.

"Dealers are going to find it more and more difficult in the next few months to find the stock they want to sell at the price they want to pay, which will unavoidably have an impact on the windscreen price," said Ian Simpson, sales and marketing director at RAC Warranty, said:

"All of this means that dealers will almost inevitably sell fewer cars in the medium term until stock levels start to recover, although the extent of the problem is difficult to predict, as is the point in time at which stock levels will start to recover.

To offset lower volumes Simpson said dealers need to have properly structured sales processes in place when dealing with customers.

DATED: 17.09.09

FEED: MT