The problem of pre-reg...

Pre-registration. A motor trade term which strikes fear into the heart of every franchised sales manager in the land. Despite the stifling effect this process has on a dealer, the bonus payments are just too important to banks and budgets to be ignored.


With two weeks left of any quarter, a sales manager will know their registration projection, achievement and target better than the birthdays of their nearest and dearest.


It is no blessing to find yourself on or ahead of target with two weeks left. You then become a target of the manufacturer for over-achievement. The only positive aspect of pre-registration in this situation is that you do hold the cards in the negotiation. It is likely some hefty bonus payments will be offered, just how weighty will depend on your brand and product availability.


If you find yourself a little short, your next resource to be plundered is demonstrators and service loan cars. Three months feels like an eternity to wait when you know there are a dozen registrations waiting for you. However, whilst the new flock may be delivered with haste, the returning tribe are not as welcome - especially for those suffering meagre write down allowances.


The worst position is to find yourself a long way short. Through a combination of poor performance, over targeting and product availability, I have been in this position more times than I would like. Therefore I do have a few tips for those who find themselves in that sticky situation:


1/ Cheapest is not always best. You may have a lead in car at £6995 but at £5995 a customer will more often than not choose the new car option.

2/ Avoid the crowds. Don't pick models that the dealer twenty miles down the road will have. The internet savvy customer (pretty much everyone) will use this to beat you down on price.

3/Blow them out the door. Forget trying to hold on to every penny, the longer they lurk the bigger the problem.

4/Still sell new. Do not beat the salesman who could not convert a new car prospect, the easiest way to avoid the same problem next quarter is to complete the task early.