Protects margins by allowing retailers to maintain control of deal quality and add value through customer experience
Successful deployments significantly reduce new car stock and operating costs
Provides pertinent market intelligence to inform future model and option mix
THAKEHAM, UK, 9th October 2018: A new platform called CarWizz enables automotive retailers to take back control of online vehicle sales and significantly reduce ageing new car stock. By only advertising list price figures for stock vehicles, CarWizz returns full control of negotiations and deal quality to retailers while also facilitating lower operating costs and informing future stock purchases.
Online buying trends have created expectations of immediacy among customers that can only be satisfied timely through physical stock rather than factory orders. CarWizz focuses negotiations on a specific readily-available vehicle rather than something any retailer of that marque can supply, leaving subscribers in a stronger negotiating position than would be the case with a referral from a brokerage site.
Michael Lowdell, co-founder of CarWizz, considers this a core appeal, “the CarWizz platform bridges traditional and online retailing in a way that returns control of customer relationships to retailers and integrates negotiations within their existing sales processes, thus combining the traditional online advantage of reaching an out-of-area audience without the disadvantage of committing to a near-cost or below-cost price.”
CarWizz can also lower operating costs during a difficult period for the industry. Restrictions around pre-registration volumes and a misalignment between supply of and demand for diesel-powered vehicles have increased stocking costs for retailers, while also obliging many to acquire additional storage facilities. CarWizz ensures visibility of these stock vehicles to a far broader and more geographically diverse audience than possible if left in a showroom or storage compound, with the associated stock reduction lowering stocking and storage costs.
“Interest charges up to £200 per month for every £50,000 of stock held represent a considerable operating cost for retailers of any size, so placing ageing stock through CarWizz makes it easy to see a strong return on investment,” adds Lowdell. The per-site subscription model makes CarWizz a particularly attractive value proposition for retail groups seeking national coverage.
Further optimisation of stock turnover can be achieved through CarWizz’s market intelligence tools that provide users with pertinent and actionable information, such as which models, colours and items of optional equipment receive the most enquiries and sell most quickly. This data can help dealers specify the right cars to maximise enquiries and minimise storage and stocking costs.
Conceived by former senior managers from a leading automotive retail group, CarWizz is not a broker and is not a price comparison site.
“CarWizz allows retailers to escape the race to the bottom encouraged by online brokerages and advertising platforms by only displaying hosted vehicles at list price,” states Nigel Barber, co-founder of CarWizz. Accordingly, utilising CarWizz retains not only the manufacturer’s original price proposition vis-à-vis competitors, but also the chance for sales executives and business managers to maximise retained chassis profit, finance and insurance penetration during subsequent negotiations.
Barber believes this will endear CarWizz to both prestige and volume retailers, “volume brands can appear on the site without their natural price advantage being eroded by discounts from high-margin prestige marques, who in turn can focus on differentiating through features and service. This appeals to national importers facing price pressure through adverse currency movements, as well as retail groups who have invested heavily in newer, larger showrooms with a focus on the customer journey that has previously been difficult to integrate into online referrals.”
Demonstrations of the CarWizz platform are available via https://dealerdemo-carwizz.co.uk/ ahead of a full launch slated for January 2019. The UK’s fifteen most popular brands will feature, with each manufacturer represented by at least three dealer groups.
CarWizz is an independent company set up to service customers who want to buy a new car fast. Our team all have years of motor industry retail trade experience and came to understand the real frustration customers felt having to wait up to 3 months for their dream car. However, it is very possible that the car already exists because another dealer has ordered it and is holding it in their stock. Dealer stock is not visible to customers and not shared between dealers, so it is very difficult to see what stock is available… until now! CarWizz makes live retailer stock visible.
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