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How can you monetize your car dealership assets and earn an additional 300 euros /month /vehicle?

6.4.2022 15:32

More than 40%* of automotive customers are now Millenials and their expectations towards car sales are moving away from vehicle ownership towards ‘vehicle usership’.

Indeed new models to facilitate vehicle usership have emerged in recent years. For example, companies are offering viable and financially interesting alternatives to owning a car via the mobility budget scheme. Cities are also introducing low emission zones, increasing parking costs, etc. making it expensive and inconvenient for a family to own two cars as they would have before or use their personal car to commute. 

The Mobility as a Service (MaaS) market also gives plenty of options such as ride-hailing, car sharing, bike sharing and subscription services which are changing the way people relate to personal vehicles. People simply want a car only when they need one.

Moreover, the COVID-19 crisis and a global focus on sustainability have increased this shift. 

This means that the landscape of car dealerships and mobility is changing rapidly and the traditional way of buying and owning cars is therefore evolving. To answer this trend, car dealers are starting to sell mobility services on top of their traditional services.

Connecting your vehicles

The first step to monetize your unused vehicles is to connect your fleet with a hardware device and a software allowing you to rent your fleet in an autonomous manner.

Connecting your vehicles gives you access to fleet dashboards where you can monitor your users, vehicles, bookings, damage checks or alerts in a centralized way. You can easily monitor your replacement or rental vehicles  bookings, manually assign users and vehicles, modify bookings and many more!

It also massively reduces the keys management overhead as your connected vehicles can be locked and unlocked by your customers through their smartphones and also remotely by your staff via a fleet dashboard. 

Those solutions also provide essential telematics information on your connected vehicles. By having telematics in your replacement vehicles for example, you can easily monitor real-time the fuel levels, mileage or maintenance needs of the vehicles without your staff having to manually check every vehicle. Plus you always know where they are at all times.

Mobility as a service - move from fleet to mobility provider and management

What are consumers looking for when buying mobility services? Their choice is often influenced by the price and how accessible the service is. To meet those customer’s demands, new mobility providers need to offer flexible and customizable services. 

As a car dealership, you can take care of your customer’s car but also their transportation needs such as vehicle on demand and mobility on demand.  The good news is that you have everything you need in your parking to make an additional 300 euros per month per vehicle. You can use your existing pool of replacement cars or demo cars to develop new rental services or have dedicated rentals.

You can also address your corporate customers by offering them new mobility services in 2 ways. First you can rent vehicles to your fleet customers for their employees’ professional and private mobility from your new rental fleet. Secondly you can become a mobility partner to your fleet customers, that is also able to offer a credible alternative to individual company cars and/or individual car ownership in general, next to only selling them vehicles.

Vehicle on demand - Put your cars at work and boost your margin

Your replacement cars are often sitting in your parking outside of business hours and on the weekends. You can easily offer a rental service to your existing or new customers who need transportation on a temporary basis and would be ready to pay to drive a different vehicle. For example, to go on a family vacation that requires more luggage space. 

This service can also become a loyalty program for your existing customers by offering them a vehicle on-demand service to test out new cars or renting a temporary vehicle for a trip. You can answer their transportation needs outside of the traditional after sales services your dealership offers. 

To simply rent your cars, without having to hire more staff, you can use existing technology such as MyMove where customers can register, book, lock and unlock the vehicles autonomously in a secure way. You can easily monetize your replacement cars and earn an average of 300 euros per month per vehicle. 

Offer extended demos

Another way to offer flexibility and great customer experience is to offer paid extended demos by renting out the vehicle models you want to sell. Most customers are willing to pay to have the car for a longer test drive than just around the block with a sales person.

MyMove has enabled car dealers to easily put in place a rental service to their customers who are interested in renting out vehicles for a longer period than a test drive. For example, we have seen potential buyers renting different car models of a brand before choosing the most suitable model to buy. 

Another innovative service you can also offer with renting your demo cars is to put vehicles at strategic locations to promote them where your customers are, without having to dedicate staff to the location. 

Renting out some of your demo vehicles becomes a sales enabler and you can monetize those assets.

Mobility on demand

By offering mobility services you can then target 3 different segments and mirror your pricing strategy. 

  • After-sales (existing customers): customers that need a replacement car for a few days can now either obtain a vehicle either via the traditional channel (your dealership desk) or via an easy to use technology. 
  • Leisure (existing & new customers): people that temporarily need a different type of car like a family that owns a small car, but wants a larger one for holidays.
  • Assistance (existing & new customers): someone whose car broke down and needs a quick mobility solution.

Conclusion

By connecting your fleet and offering new mobility services, your car dealership will target customers in new, innovative ways by digitizing part of your sales or after sales services. To not miss the digital and new mobility train, your car dealership should start expanding its value proposition to become a mobility provider today.

At MyMove, we help car dealers offer a frictionless, digital self-service experience to their customers, as a new, additional sales channel. 

We provide both the hardware and software to connect and rent your vehicles and see accurate telematics in one dashboard. Via our fleet dashboards, you can manage your users, vehicles, bookings and push and pull various data from your existing dealership software. 

Curious how we can help you monetize your existing assets? Fill in the form below and we will get in touch as soon as possible.

*Source: https://www.accenture.com/_acnmedia/PDF-108/Accenture-Study-The-Future-of-Automotive-Sales.pdf

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