F&I Management & Training

Dealers have been urged to prepare for the end of the scrappage scheme, which some commentators predict could come as early as the end of October.

Network Automotive, the motor industry consultancy, warned the
artificial boost provided by the scheme, which rocketed new car registrations up 6 per cent in August, could leave some dealers unprepared for an unsubsidised new car market.

"The scrappage scheme has worked remarkably well, being responsible for more than 150,000 registrations. However, when the money runs out, there is likely to be a fall off in business, and dealers need to ensure that they are properly prepared at that point," said managing director Colin Bruder.

Back to basics
Bruder said dealers need to focus on CRM techniques and database management to remain competitive after the scheme ends.

"Sales people need to ensure that they are ready to sell cars without the £2,000 subsidy by returning to CRM techniques that are proven to maximise results, such as interrogating their database for customers that have owned their current vehicle for two or three years and may be thinking of changing their car.

"They also need to ensure that aftersales continues to be a important source of profitability by capturing servicing and maintenance work for all the vehicles that they have sold under the scrappage scheme. These customers could contribute to dealership profitability for many years into the future," he said.

DATED: 04.09.09

FEED: MT