The Kia Approved Used Car Programme / Dealer Profitability European Networking Group, January 24th, 2017
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Annual new car sales 1.9 - 2.6m Used car sales 6.2 – 7.7m Annual new car sales 1.9 - 2.7m Used car sales 4.8 – 6.7m % of dealer’s profit is derived from Used Cars & F& I income 36 different brands actively compete to sell new and used cars
in the UK
Nationally, 50 % of dealer’s profit is derived from Used Cars & F& I income
Snapshot of the UK Car Market
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Annual new car sales 1.9 - 2.6m Used car sales 6.2 – 7.7m More than 90% of most brands enquiries come from the net. 50% of Car Buyers don’t contact the Dealer before visiting. 60% of all car searches are conducted between 18.00 and 21.00 % of dealer’s profit is derived from Used Cars & F& I income Less than 10% of consumers know the brand they want to buy before
they start their search. 85 % of consumers take less than 6 weeks to do their research
More than 80% of Dealer’s used car sales are made within 1 hour’s drive of the Dealership.
The importance of the Internet…..
Data, courtesy of Autotrader
The origins of the Kia Approved Used Car Program..... 2008 / 2009.....The RECESSION..... Think the unthinkable.....
Used car programme comparison.
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Manufacturer Manufacturer Manufacturer Manufacturer Manufacturer Manufacturer Manufacturer
Ford Direct Toyota Approved Used
Warranty Offer 12 months/20,000
mile or balance of
manufacturers
warranty, whichever is
longer.
2yrs unlimited
mileage
Back to Original
period / 100,000miles
Keep remainder of the original 3
year 60,000 mile warranty or
extend the warranty to cover 12
months/Unlimited mileage12
months unlimited
12 months See notes below Keep remainder of the
original 5 year warranty. If
the vehicle is older than five
years then a 12 month
warranty is supplied.
Maximum Car Age 4 Years 1 year 18 months 7 years 5 years No mention on web page? No mention on web page?
Maximum Car
Mileage
60,000 miles 20,000 miles 18,000 miles 100,000 miles 60,000 miles 100,000 milesNo mention on web page?
Preparation Standard Multi point Inspection Multi point
Inspection
Multi point Inspection Multi point Inspection Multi point Inspection Multi point inspection Multi point inspection
Exchange Benefit 30 day exchange 30 day/1000 Mile
exchange
60 day exchange 30 day/500 Mile exchange 30 day/1000 Mile
exchange
30 day/1000 Mile
exchange
30 day/1000 Mile exchange
All Makes
Programme
No No No Non Toyota's receive similar
level of cover.
Yes No No
Recovery/Breakdown
Cover
12 months AA
Assistance
2yr Ford Assistance 2 year RAC inc
European Cover
12 months AA 12 months Citroen
Roadside Assistance
Volkswagen Assistance12 Months RAC assistance
Additional Benefits: 7 day free insurance 7 day insurance 7 day insurance HPI & NMR check HPI & NMR check HPI & NMR check HPi & NMR check
HPi Check HPi & NMR check HPi & NMR check
Check on Vauxhall
recall register
Tamper proof
hologram. Free
Transfer of any
remaining
breakdown cover
and warranty if
vehicle sold.
O% Finance for up to
48 months on
Specific models - with
no dealer subsidy.
Hologram bearing the
Kia motif
Automatically become a
member of Club Toyota for 12
months. (entitles the customer
to take advantage of exclusive
offers and promotions.)
Comments Every Network Q
Vauxhall registered to
2nd owner only under
12 months old with
less than 30,000
miles now supplied
with lifetime 100,000
mile warranty
90 day Sale or Return
Programme on
Campaign vehicles.
90 Day Free stocking
on Non campaign
vehicles
Depending on the age of
the vehicle there are two
warranty's supplied. For
cars up to 3 years and
100K it will have an all
component Warranty. All
vehicles over 3 years of
age and under 100,000
miles will have an
Approved Warranty.
If Original new Car warranty
has expired, then a 12
month Approved Warranty
will be supplied.
Warranty CAR Care Plan Car Care Plan In House Mondial TWG/RAC
Used Car Warranty Scheme
Aon are the underwriters. Not
sure if Toyota administer in
house
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2009 New Car Sales, 31,800
2016 New Car Sales, 89,000
A Brand on the move, despite the
fluctuations of the market…..
Rental Company ‘Buy Backs’
Brand ‘Buys-Back’ rental
cars and ‘Refurbishes / reconditions
cars
Brand sells cars to Dealers
/ 3rd parties , via
various sales channels
Brand sell cars on ‘Buy-Back’
Deal to Rental
Company
Congruent
with New Car Strategy
Robust De-fleet process
Engage with Market Makers Cars are ‘Ready to Retail’
Some thoughts and learnings…..
We only sell cars to Kia Dealers – no 3rd parties
The Kia Approved Used Car Program
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2016 - a year of recognition.
Used Car of the Year – The Kia
Sportage
2016, carbuyer, Used Car of the Year, the Kia cee’d
Transparency…..?
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How old do you
want it to be?
How old is this horse?
Residual Value, A segment
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Residual Value, B segment
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Residual Value, C MPV segment
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Residual Value, C SUV segment
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57
59
61
63
65
67
69
71
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Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
SPORTAGE 1.7
CRDi ISG 2 5drManufactuer A
Manufactuer B
Manufactuer C
Manufactuer D
Sportage 1.7 CRDi RV 1 Year 10K 2016
Residual Value, D SUV segment
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Residual Values, all segments
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Annual new car sales 1.9 - 2.6m Used car sales 6.2 – 7.7m The average Kia Dealer sold 54 Kia Approved used cars last
year. The average Dealer made just under £1,000 GP % of dealer’s profit is derived from Used Cars & F& I income The average Kia Dealer turned their used car stock, every 47
days
The ‘average’ Kia Approved Used Car
Dealer…..
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