Used car marketing costs could be cut by £1m
Dealers could save more than £1m per year by improving their used car marketing processes.
This is according to vehicle inventory platform providers Autofinity, which carried out in-depth analysis to highlight the price of marketing a used vehicle online whilst in stock.
It identified 21 separate tasks around used car marketing including updating prices, validating prices, amending classified portals and websites, reviewing vehicle ratings, and managing leads. It then estimated the time it took to complete each task and, based on an hourly rate of £13, calculated that for dealerships with 2,000 cars selling in an average of 45 days, the total cost was £3,199,733 per year.
Autofinity’s chief solutions officer Chris Banks said: “Our intention was to show in granular detail, the expenditure on one part of the business and explain how automation can improve efficiency and therefore save costs whilst freeing up the time of employees but even we were shocked.
“On the positive side, automation can very quickly make an impact and using the same modelling we have calculated that a dealer group could save more than £1m a year.”
Autofinity’s ViHUB, by integrating systems and automating updates, can potentially save dealers £13 per vehicle per week – more than £25,000 for a stock holding of 2,000 vehicles which translates to a group-wide monthly stock management saving of £110.789, or £1,329,467 per year.
