For a lot of retailers, part-exchange vehicles they don’t want to retail are rarely looked at as a revenue opportunity. Many are happy to just get back what the vehicle owes them.
A part-exchange comes in, the team decides it isn’t right for retail, and then it waits. It waits for the next decision, the next collection or the next sale slot. But Luscombe’s look at this trade stock as an opportunity to add more profit to the bottom line. This simple change in perspective has had a real positive impact on their business.
With three franchises operating from one site, space isn’t something the team can afford to waste. Their answer has been to list trade stock on Dealer Auction from the point of appraisal, so vehicles can start attracting trade buyer interest before they’re back on site. In some cases, the space where the customer drops the vehicle off is the same space it’s collected from by the buyer.
Listing earlier changes the conversation
The important part of Luscombe’s approach isn’t just that they use Dealer Auction. It’s how they’ve integrated it into their appraisal process.
By doing this, the team can act sooner on vehicles they don’t plan to retail, plus it helps keep the sales team sharp when buying in part-exes. It’s a small process shift, but it’s made a big difference to the speed at which these vehicles are sold and moved off the forecourt, plus the money they make at auction.
We understand that one of the biggest challenges retailers perceive in adopting a digital self-serve method is that it will create more work. But Luscombe’s is proof that it can work for franchise retailers with limited space and resource.
Trade stock still has a job to do
And trade profit shouldn’t be a dirty word. Especially when retailers are being squeezed at every angle. An extra % of profit makes a big difference come the end of the year.
The big question is, are you sweating your assets and making them work harder for you? Even a single figure % increase in CAP performance across the year can equate to hundreds and thousands of pounds. Not to mention the daily cost of each space taken up by a trade car, or a retail car that’s just not shifting.
It’s also worth looking beyond the comfort of a rebate. A rebate can feel like easy money, but if it comes at the cost of stronger buyer competition or a better sale price, it can quickly become a false economy. The real win is getting the strongest overall return for the vehicle, not just focusing on what comes back upfront.
As Sam Luscombe, managing director at Luscombe’s, puts it:
“We now view the stock as an opportunity and not a cost.”
A practical example for other retailers
Every retailer handles part-exchange stock differently, but the pressure points are often the same: space, time, resource and knowing when to move a vehicle on.
Luscombe’s shows that selling trade stock through Dealer Auction doesn’t need to be complicated. By listing from appraisal, the process can start earlier and fit more naturally into the way the team already works.
For retailers who think they don’t have the space or resource to sell trade stock on Dealer Auction, the Luscombe’s approach is a practical example of how it can work.
See what they have to say about it themselves
