Selling Your Car?,,,, Speak To A Professional Not Technology!

Some interesting feedback and discussion following my previous post Are Online Used Car Valuation Companies Offering The Best Prices? Much from the audience it was intended for; private individuals and owners of the cars mentioned and highlighted in the article. The main question and discussion point being; why are the online valuation companies so inaccurate in some of their valuations, when compared to actual market reality? Much of which was covered in the article itself, which can still be found in my feed.

???????????????????

But in brevity the answer was that they can’t be completely accurate (across all used car markets), or indeed (I think) have any desire to be so. But many of you still asked why? Well, I’m not here to give them all the answers on plate (or for free), and in truth I think there are many reasons; some to do with their target markets and many to do with operational and strategic flaws in their business models.

?

That said I have a feeling that there is one issue, one so important and one that lies at the very foundation of how they have set up their business. Now, when it comes to successful used car retailing (not just successful acquisition), I think there are many operational and strategic flaws in the business models being operated by the tech based online companies, ?franchised dealer networks and the big independent used car retailers at the moment. One being that they are all appear to be doing and/or offering the same thing as each other; and when you are doing the same thing as everyone else, it can only be about price.

?

And this is the world they have created for themselves and the world within which they now operate; it will be interesting to see who currently running this model has the acumen and expertise to survive the world of decreased used car stock holdings that is now front and centre?

?

But this article is about valuations and acquisitions expertise, something that will go to the very heart of the business models being run by them all; and that when it comes to valuations and acquisitions, they have bet everything on technology and valuations algorithms, not the professionals required.

?

Now in truth, in one used car market this valuation and acquisition method can work; the used car market involving the de-fleeting process involved with 1-3 year old cars. The process involving what I would affectionately call “Run of the Mill” cars; why? Well this market was (key word) easy to predict and involved a sizeable volume of supply, so data on pricing was available from many sources; auctions houses etc.

?

So if you own a car falling into this category, the online valuation companies may well be offering the best valuations and prices, but here’s an important point; this used car market is just one of many highly specialised used car markets in the UK. And in the UK’s multifaceted trading landscape, one involving many individual and highly specialised used car markets (all operating very differently from each other), their valuations technology and algorithm is the major flaw/weakness in their business model.

?

In effect, it renders the businesses using this technology as oil tankers in a sea of jets skis; they are not agile enough to meet the demands of the majority of used car markets, especially when it comes to acquisitions and valuations; why? Well in the majority of these used car markets, there is no accurate data available to them; so in these situations it is my suspicion that they deploy a “Predictive Element” to their valuations logarithm; an element that then leaves their valuations and offers as woefully inaccurate, in terms of valuing cars in these markets. But enough of this, I am danger of going off on too many tangents.

?

Because underpinning this weakness is an even bigger oversight which has developed an even bigger flaw; the wrong people, or not enough of the right people. Now I’ve worked with a lot of our so called tech geniuses; they are an individual bunch (like all of us) but one flaw in the thinking of many is that technology can always outperform people.

?

To be fair in many situations it can but used car markets are very different; both in terms of acquisitions and sales. For sure (and as previously mentioned), in some of the used car markets a technology based model and process can be fit for purpose, but in the vast majority of used car markets it isn’t. In these markets technology will never replace the right professionals; especially when it comes to acquisitions.

?

What our tech geniuses tend to forget (in the vast majority of cases because they are tech-people, not people-people) is that outside of the used car market they (probably) constructed their valuations algorithm for (the 1-3 year old de-fleeting market), used car stock valuation and acquisition is primarily a people business; not a car business.

?

When it comes to buying and selling in more specialised used car markets, people tend to buy and/or sell with emotion, then justify with logic; and this process is impossible to write into any valuations algorithm. Add to this the fact that they have no data for actual purchase and sales prices for these markets, then the vast majority of used car markets will remain out of reach to the tech based companies.

?

Unfortunately for the tech based companies, in order to succeed in these more specialised and lucrative used car markets (those that are continually developing in real time and at a pace), you need the professionals who know how to operate within these markets; both socially and professionally. You also need to leverage the entire end-to-end solution from successful acquisition – preparation – advertising - retail sale. Every stage of the process must be running effectively and in conjunction with the others, to be an overall success; if one is failing, then the whole business fails.

?

So if the valuations algorithm deployed by the online acquisitions companies is not fit for purpose in some used car markets, just how far out can they be when it comes to valuing more specialised used car stock? Well as many will have seen from my recent buying articles and adverts on the platform, their lack of expertise in certain used car markets has resulted in me offering between 16.5% and 183% more than the online tech based valuations companies, for specialist premium used car stock.

?

In reality there are too many examples to mention but some of the most recent examples include;??

?

16% more for BMW 5 Series Diesel Model’s.

53% more for BMW X3 Diesel Model’s.

100% more for BMW Z4 Roadster Models.

183% more for BMW Z3 Roadster Models.

75% more for BMW 3 Series Convertible Models.

20% more for Mercedes Benz SLK Model’s.?

20% more for Land Rover Discovery Diesel 3’s.

25% more for Ranger Rover Sport Diesel Models.

?

As used car markets continue to evolve I think it is important that those owning and looking to sell cars falling outside of the 1-3 year old examples (especially those models mentioned above), know that they can gain unrivalled access to the market expertise and the disposal routes required, in order to get the most competitive offer for their car.

?

Offering immediate cash purchase, (should circumstances dictate), or the facility to act as your trusted conduit to the market (returning the best prices), I am the ultimate solution provider for those looking to dispose of any of the cars mentioned above.

?

If you are curious as to how much more you could be offered for your car (in comparison to the online tech based valuation companies), please feel free to reach out to me directly on LinkedIn, via email at [email protected] or on 07500 321539; so we can arrange a consultation call and you can receive an immediate offer for your car.?

?

Andrew.