Monday, December 23, 2013
Mercedes to boost used car advertising
Mercedes is to significantly increase its advertising spend on used cars in 2014, and will ask retailers to follow its lead.
Speaking at the FLA’s annual motor conference last month, Mercedes’ cars UK managing director Gary Savage, said: “As a global brand we’ve not got used cars at the front of our minds. We spend around £70m a year on advertising, and only £1.5m of that is on used cars. In 2014, that’s going to change and our national media spend on used cars will be much higher and we’re going to ask our retailers to increase their investment too.”
Mercedes is increasing its investment in used car advertising because of the increasing number of sales through its PCP scheme.
“In 2010, 40% of private sales were on PCP, in 2013 that figure is 90%, our strong RVs make it a good offer and we now simply talk about the monthly PCP rate when selling a car. PCP cars are now starting to come back to the market. They come back to us and we have to manage the RVs,” he added.
Mr Savage said that Mercedes has around 129,000 cars on PCP contracts and that the Mercedes Benz Retail Group is the biggest retailer of these cars.
DATED: 23.12.2013
FEED: ARM
