A solution to the most expensive and time-consuming commercial process problem endured by car manufacturers and their resellers has gone live, with the launch by CAP of ‘New Vehicle Incentives’.
CAP New Vehicle Incentives now offers massive potential for boosting profit in motor retail and fleet by revolutionising one of the most difficult and error-prone processes in the industry.
More than a year in development, CAP New Vehicle Incentives sweeps away the problems of communicating the latest incentives, between manufacturers and their resellers, with one simple, secure, fast and reliable automated information service.
By directing all the latest pricing and incentive information into a single secure web-based system, CAP NVI eradicates the headaches faced daily in the motor manufacture, retail and fleet sectors of updating systems with the latest incentive details.
Elimination of mistakes and delays – in a traditionally error-prone and time-intensive process – means CAP NVI unlocks massive potential for greater profitability by driving more business, faster and more safely.
The need for a solution has long been recognised by professionals in retail and fleet, but it remained elusive because none of the parties involved had the capability to seamlessly link all relevant information.
Independent research has shown that new vehicle incentives form a manufacturer’s second largest cost – exceeded only by raw materials – dwarfing product development budgets, warranty provision and even assembly costs. But the existing process for communicating them is strewn with errors and fails to wring all the potential profit out of the cars it is designed to sell.
The average investment per unit in incentives is around £2,000 and yet communication of this information to resellers is typically paper-based, time-consuming, error-prone, inefficient and – worst of all – completely opaque. It is therefore very difficult to analyse performance of incentives and hard to even maintain 100% correct pricing information in the marketplace at all times.
The launch of CAP New Vehicle Incentives provides a system to capture and distribute this critical information to enable the right price to be on the right car all the time.
Refining and smoothing the incentives communication process will bring massive benefits for both manufacturers and resellers. For manufacturers it will unlock greater profit opportunities and enable more sophisticated management of model lifecycle than has ever been possible before.
It is estimated that £40 million of additional revenue is currently generated over the lifecycle of a typical model by using financial incentives. But deploying massive investment to manage lifecycle decay each year can be a ‘blunt-edged sword’. This is because manufacturers are often operating in the dark when it comes to information and control over how the investment impacts at point of sale and there is often no clarity at all on the question of whether such money is being efficiently targeted.
CAP New Vehicle Incentives enables the manufacturer to;
- Monitor the impact of incentives
- Respond swiftly to changes in the market and adjust incentives accordingly
- Wring more profit out of each model by managing lifecycle decay more effectively with incentives
- Avoid wasting incentive spend on models which do not need the support
- Get incentive information to resellers faster, more efficiently and more accurately
- Gain instant clarity on reseller sales activity, incentives agreed per vehicle and eliminate the common problem of financial errors on rebate claims
- Dramatically improve the relationship between manufacturer and reseller by the clearest and swiftest possible communication
For resellers the communication of incentives is transformed from an error-prone, time-costly and problematic process into a smoothly automated system. CAP NVI enables resellers to;
- Take vehicle offers to market faster
- Reduce labour costs and time spent learning and updating the latest incentive terms
- Eradicate errors, thanks to the linking of all incentive terms per model to the CAP Code
- Administer agreements with customers correctly, first time, every time
- Eliminate profit loss due to claim error
- Stop wasting time negotiating rebate claims
- Understand instantly which incentives are optional or mandatory
- Free up staff, currently tied up administering incentive information
CAP is uniquely placed to bring CAP NVI to market due to the unique CAP Code, which intelligently links multiple data sets to always attach the right information to the right vehicle. The CAP Code is key to vehicle information sharing across a multitude of commercial platforms. The business is already trusted among manufacturers and resellers due to its existing strong relationships across the sector, which sees 98% of the AM 100 utilising CAP data.
CAP New Vehicle Incentives product manager, Nigel Pates, said: “Deployment of new vehicle incentives is one of the most intractable problems faced daily in our industry.
“The problem is partly due to the innovation and success of manufacturers in providing a greater variety of models and the sheer plethora of features, within every range, which all goes toward providing fantastic choice for motorists but also makes the market more complex than ever before.
“With the market moving ever faster, this problem will only grow and the existing processes we discovered in our research across the industry were already fraught with problems and frustrations for manufacturers and resellers. It was clear that a single solution was needed and CAP is the only information provider with the all-round capabilities and longstanding relationships in place already to provide it.
“CAP NVI will unlock millions of pounds of additional profit opportunity for manufacturers, drive out costs and eliminate the errors that are inevitable with the existing often paper-based methods of communicating incentive support.
“For resellers it will generate greater revenues, release people to focus their energies in other areas of their business and create a confidence in the incentive information they receive that has not previously been possible.”
Find out more about CAP New Vehicle Incentives, click here.
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