Enhancing Products and Services
Automobile Purchase
and Sales
Tailored Support for Those Thinking of Moving on to Their Next Car
AUTOBACS is bolstering its automobile purchase and sales business, its third core business, following the automotive goods and statutory safety inspections and maintenance businesses. By providing a service that allows customers to freely consult with us when they are thinking about moving on to their next car - whether for a change in lifestyles or other reasons - we are not only providing support for yet another of the customer’s car-related needs but also promoting future synergies with the automotive goods and statutory safety inspections and maintenance businesses.
Market Environment and Business Trends
In Japan, the number of cars registered as having been purchased used has remained steady at around 5 million per year, about equal to the number of cars registered as having been purchased new. AUTOBACS is using strengths in the form of frequency of customer store visits and thorough after-purchase customer service to differentiate itself from competitors specializing in the purchase or sale of used cars, and accelerating its growth by offering services on a nationwide basis.
Strengthening Automobile Purchase Service
Attracting More Customers to this Service by Making It Easier to Use and Delivering More Compelling Results
AUTOBACS’ automobile purchase service provides the customer with an estimate of the sale value of their vehicle when they come to a store to shop, and is the only one in the industry to guarantee the appraisal value for five days. Having individual stores provide all the information necessary for deciding whether to purchase another car - everything from estimates of statutory safety inspection and maintenance costs, to data on cars the customer is interested in - we are encouraging customers to use our purchase service. Steadily rising year by year, the number of automobiles we purchased rose to a total of 10,535 in fiscal 2015.
Strengthening Used Car Sales
Service that Relieves Concerns Specific to Used Cars
When AUTOBACS sells a used car, it inspects the car for maintenance issues and performs a thorough cleaning prior to delivery. That much would be expected. But we also provide a warranty with full coverage for all malfunctions during the first three months or 3,000km, with extension up to three years for a separate fee. In addition, all automobile goods purchased together with the car are priced at a discount and can be used to customize the car, and AUTOBACS offers its own auto lease and loan programs covering entire amounts paid for cars and automobile goods purchased together. For the peace of mind of customers throughout Japan, we have also established a program that provides financial assistance for repairing scratches and dents incurred within three months of a purchase.
Nonfinancial Capital Driving Value Creation
Increasing the Number of Stores Where Automobiles Are Purchased and Sold
The automobile purchase and sales business is being developed as a separate operation, under the “AUTOBACS C@RS” brand, within AUTOBACS chain stores. In recent years, the number of franchise stores has been rising rapidly, and as of March 31, 2015, there were 451 “AUTOBACS C@RS” franchise stores.
Nationwide Uniform Vehicle Appraisal Standards
In fiscal 2014, we updated our vehicle appraisal system to increase appraisal precision, reduce lead times, and lighten the burden on store staff. The new system includes specified appraisal items based on nationwide uniform standards. Once information is entered into a tablet at a store, we quickly provide an appraisal value based on used-car market prices. With this system we are working to energize appraisals and purchases by stores to secure outstanding used vehicles. Having a stock of superior used cars allows us to sell vehicles through channels including auto auctions and other wholesale channels for a steady income stream, while also providing customers with good vehicle selections.
Strengthening Our Workforce
The Company has an education and training system designed to provide employees with basic knowledge and appraisal skills, customer interaction skills, and other knowledge necessary for purchasing and selling cars. To improve purchase appraisal skills in particular, attention is focused on the use of our appraisal system to judge the value of vehicles. As of March 31, 2015, approximately 2,300 of our employees were qualified to perform appraisals using our appraisal system.
Aiming to Expand Automobile Purchases and Sales by Strengthening Sales Promotion Activities at the National Level
Several years ago, we began to augment the automobile purchase and sales business, and have been working to create a system and infrastructure that operates as a department within franchise stores and simplifies the purchasing and selling of cars. As a result, franchisees have developed a better understanding of the automobile purchase and sales business, there is greater desire to offer a new line of products, and participation as an AUTOBACS C@RS location has been growing rapidly. Going forward, we aim to increase sales through measures such as strengthening nationwide sales promotion activities, and increasing awareness of AUTOBACS’ automobile purchase and sales business.
Nobuhiko Murakoshi General Manager, C@RS Business Department
