F&I Management & Training

Order takers

Business management specialists ASE incorporating Trevor Jones said scrappage had been a "windfall for some but not all of the franchises" and that "a lot of sales executives have become order takers" in 2009.

"It is vital to revisit the sales process and keep revisiting it during 2010 and pay particular attention to the service customers," said Trevor Jones (pictured).

Declining vehicle parc

"Without exception franchises are really concerned about the fall off in the vehicle parc and the knock on downward effect that will have on service volumes and overhead absorbtion," he said.

Jones said dealers needed "to take a long hard lock at service to determine what action should be taken to halt the decline in overhead absorbtion".

Key conclusions

• Banks continued to be difficult in the majority of cases in 2009
• Property values and security levels fell but there was more pressure on overdrafts
• There has been a "massive hike" in renewals
• Banks have not pressed the "destruct button" and a much lower number of dealers have closed than was expected
• Excellent used car performance in 2009 has "slowed dramatically" in recent weeks
• Vast majority of used cars are not now reaching their reserve prices at auction

DATED: 23.12.09

FEED: MT