Fiat’s used car success
March 19th, 2009 by Richard Aucock
FIAT reports that ripping up the rulebook for its used car schemes has been a ‘massive success’.
The Italian maker says that used car wholesales were up 42 percent in 2008, as car dealers benefitted from the new scheme.
Retained values have also seen an upturn, too.
It was in response to Fiat having ‘excess used car stock’ going into 2008, remarketing manager Simon Wheeler admits.
‘When I joined the business in February last year, the objective was clear; reduce stocks without damaging values in the market place.’
The overhaul he imposed has worked, though. ‘Some cars, such as Grande Punto, are now in very short supply – which has, in turn, pushed up residual values in the used car guides.
‘CAP has, for example, increased values on 12-18 month old Fiat Grande Puntos by as much as five percent from February to March alone this year.’
Wheeler says that Fiat’s own electronic auctions have also seen Grande Puntos making 120 percent of CAP…
Fiat’s online remarketing portal was a big part of the success. There was a four-fold increase in dealers buying from it. And the trend has continued into 2009, with sales recording a 150 percent increase.
Wheeler is now far happier with used stock levels, particularly given the subsequent ‘significant’ increase in residual values.
‘We now find ourselves with stock levels that allow us to drive the used market to the benefit of our dealers and customers.
‘Grande Punto and Bravo in particular are in demand… we simply can’t supply them in the volumes required.’
Quite a turnaround from the problems he faced just 12 months ago…
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