2024-09-16
While 72% of French dealers use history reports when purchasing cars, few employ them to boost sales
France is known for its vibrant used vehicle segment, with dozens of dealerships operating in the country. But how do French dealers mitigate risks when acquiring second-hand cars, and what strategies do they apply to increase sales?
To lift the veil of the French used car industry, our team has surveyed 61 local dealerships of various sizes and ages to find out. 59% sell between 50 and 200 cars a year, and half of them have been operating in the market for over 7 years.
Apparently, many dealerships fail to employ vehicle history reports as an easy way to create trust and transparency among customers.
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History reports help to sell cars faster
When talking about sales strategies to encourage sales, 20% of French dealerships offer buyers a test drive, 14% allow buyers to conduct technical inspection, 20% include detailed visual information in the ad, and 11% provide the car’s service records.
While car history reports create trust among buyers and give them peace of mind when buying a used vehicle, only 9% of French dealers provide customers with history reports. However, more and more dealerships understand that a car accompanied by a clean report is a more attractive option than the one without any historical information.
According to Yoni Dayan, the founder of Simplicicar, history reports help the company sell their cars faster, as “the customer sees that the vehicle hasn’t suffered any damage and the mileage is accurate.”
Car buyers like to know if a car has been imported from abroad and learn everything about it from the day it leaves the manufacturing plant.
“A car history report helps customers to make purchasing decisions. Since all information is indicated on the carVertical report, buyers are reassured that they're buying a good vehicle,” explains Benjamin Scalzo, Head of Sales at Jean Lain Heritage.
Since carVertical works closely with our B2B partners, we provide companies with flags and stickers for their offices. This sends a message to customers that every car in the dealership will be accompanied by a history report.
Our partners can also add carVertical’s Trust Badge to their car ads. According to our research, people are 21% more likely to click on car ads with this blue badge.
Mitigating risks when acquiring used cars
Employing vehicle history reports not only helps to attract customers, create transparency, and boost sales, it can also help dealerships avoid cars in bad condition. After all, when deciding which used vehicles to take to their lot, dealers face risks. Sometimes, cars have a shady past, and they’re worth less than their asking price.
A bad decision can cause financial losses to dealerships, and more importantly – damage to reputation if defects appear after purchase.
“We were about to buy an Audi RS6 for a client. However, the carVertical report revealed a major repair (€22,000) after a collision. One side was "blown out,” with airbags deployed,” shares Yoni Dayan.
While customers shouldn’t worry about minor scratches or dents, deployed airbags or other structural damages can make a car unsafe to drive.
80% of French dealerships who participated in the survey import cars from abroad, primarily from Germany, Belgium, and the Netherlands. However, cross-border transactions bring additional risks. Countries don’t exchange vehicle data, meaning many cars in poor condition are reborn in a new country. Businesses must be cautious and evaluate every car so they wouldn’t have trouble selling them afterward.
“We import 15-20 million euros worth of vehicles a year, mostly from Germany, so we use carVertical every time we’re about to buy a car,” says Thomas Sobraques, the Director of Excel Car.
Car selling is a peculiar business, involving many risks which dealerships have to circumvent. However, by employing the right tools and maintaining close relationships with customers, companies can thrive and succeed in making the used car market more attractive to everyone.