Used cars and aftersales performance are the key to trading profitably over the coming year, according to Mike Jones, executive chairman of ASE, the specialist dealer business management company.

“Conditions may be tough and competition fierce but opportunities to trade profitably remain…2012 is undoubtedly looking like a tough year for motor retailers. For the majority of brands dealers are faced with a declining vehicle parc and lower vehicle sales expectations,…“This means dealers will have to improve their retention of used car customers and keep new car customers longer in order to improve service department performance,” he said in the January issue of Motor Trader

In Jones’ opinion the improvements need to be made in customer service in order to remain competitive

“Used vehicle sales will be a major area of focus in 2012 as dealers look to older cars to plug the profitability gap left by new cars.

“Improving used car sales will require a huge level of focus on the sourcing, stocking and marketing of the vehicles whilst ensuring that new car and demonstrator registration exercises do not get in the way of the used car profile,” he said.

Source Motortrader.com