1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194 
Go d-plated?
Page 70
Page 71
If you've noticed an error in this article please click here to report it so we can fix it.
CV manufacturers provide varying degrees of service when it comes to selling their vehicles secondhand. But VW reckons its scheme is the best on the market.
When Volkswagen turned its attention to the secondhand market it's fair to say that the resulting strategy was never going to be short of detail. Here, after all, is a German manufacturer which prides itself on thorough engineering and research in respect to its vehicles.
And it's also fair to say that the 'Assured Used Vehicle' scheme is as about as comprehensive as it gets. Although VW claims it's better than any other manufacturer, it does appear to be following best practice. If you're going to get things right it's probably best to work with your dealers and customers on equal term, and that what it's done βto great effect.
Now in its fourth year and available in 49 van centres (VCs) and counting, the programme requires every dealer to carry a minimum level of used stock, have a designated Assured display area and adopt the full compliment of web based systems (such as the e-business centre β of which more later), as well as full compliance with the programme rules. Furthermore, vehicles have to be four years old or less with a maximum of 100,000 miles on the clock.And just to keep things in the family only VCs with Assured status can purchase used vehicles from Volkswagen.
Search engine To help keep the dealer stay a step ahead of customer demand the company has introduced a search engine that not only allows you to search your current stock but also every VC nationwide. Called E-Business Centre, it means salespeople don't have to turn away potential customers if there isn't a specific vehicle in stock: they can even sell from the screen and purchase through the site.And there isn't even an extra charge to the customer for delivering the vehicle from another VC, safe in the knowledge that it will arrives in Assured condition within 4-5 working days. Backing all this up is marketing support and point-of-sale materials from Volkswagen UK.
But the selling doesn't just stop in the showroom. Customers can also utilise VVV's Used Vehicle Locator' on the intemet (www.volkswagen-vans.co.uk), which can search through both a specific VC's stock or nationally Model, body-style, transmission, age and colour can all he specified to track down the precise vehicle required.To cast the net further the company has teamed up with Auto Trader Digital (www.auto tradencom) where VCs can place their vehicles for extra coverage β there are a total of five million CV searches per year and each advert includes full dealer contact details.
To keep VCs topped up with new stock there's continual sourcing from different areas including ex-rental, demonstrators, buybacks, ex-fleet and trade-ins.The company also plans to increase its buyback policy, letting it further control the supply of secondhand vehicles Dealers may be well catered for but customers are also very much in the loop when it comes to the Assured programme. Even before a vehicle is purchased by a van centre a vehicle data check is carried out by Experian. And once purchased a 'deal file' is created that encloses the data check certificate and vehicle mileage check.This information is joined by a multi-point exam and service history check. Upon sale, the customer gets all this information along with a 12 months' warranty, MoT, and 12 months' roadside assistance.And, if all that wasn't enough for peace of mind, its online warranty service means customers can make a paperless claim using VW damage codes and labour rates quickly and efficiently.
Residual values
This may all be good for the dealer/customer relationship but it has a significant effect on the residuals as well.The Caddy 2.0Sdi retains 42% of value after two years/50,000km with its nearest competitor corning in at 34%, while the Transporter ranks at 44% (second best in class behind the Vito), with the soon-to-bereplaced LT at 36% (surprisingly third in class). By controlling the secondhand market Volkswagen has also assured the commercial status of its vehicles in years to come.
These are early days and the company reckons it currently only captures 18% of its used vehicle transactions leading to .E5-6m profit potential lost to independents But the signs are that this detailed approach to secondhand sales has already started to reap rewards VC retail volume is up 25% for the year while wholesale used volume has increased by 40%.
As for the future there are grand plans afoot for the Assured Prograrn.VW predict 18,000 used sales by 2010 (up from 7,121 for 2005) and an increased ratio of three used for every five new vehiclesThere will also be more emphasis on wholesale supply of vehicles with an increase in rental buybacks and assistance to fleets to remarket disposals direct to VCs.
Frankly any more than that would begin to smack of overkill. β’