Moving forward together – why collaboration matters to the future of the used car industry

It was industrial carmaker Henry Ford who said “If everyone is moving forward together, then success takes care of itself”. But it’s only in recent years that the second-hand car market has begun to embrace this spirit of collaboration.

In the past couple of decades the industry has changed dramatically. Technology is changing the way people buy cars, as well as the cars they buy. More recent entrants to the market – fintechs and marketplaces like ourselves - are introducing new ways of doing things. Dealerships and lenders that have been established for decades are having to adapt to the digital world, and we are seeing a lot of collaboration to improve the way we all work together.

But it’s not just about tech: much of the disruption we are currently experiencing is about improving our industry. Trade associations and regulatory bodies are making everyone consider more responsible working practices. While competition and profit have always been motivating forces in our businesses, we should see this as an industry wide challenge, one that we can tackle together to make our ecosystem fairer and more transparent for the customer and bring more equality to the workplace.

Putting the customer first

It’s now over thirty years since Vauxhall began one of the earliest “approved used” schemes, guaranteeing the quality of some its second-hand models. This approach was soon adopted by other manufacturers, including Ford, as the increase in consumer confidence was seen to translate into a boost in sales. Despite this and other positive actions, the used vehicle and car finance sectors have historically been plagued by reports of bad practice and unfair lending rates.

Our mission when we launched in 2002 was, and remains, to bring more transparency to the sector. Thankfully the modern used car and finance sectors are now a very different place and this goal is shared by many of our peers and partners. It has been placed firmly on the agenda for all finance providers with the introduction of the Consumer Duty by the Financial Conduct Authority (FCA), tasking businesses to ensure that good outcomes for the customer are at the heart of everything they do.

Measures such as these depend on the co-operation of all involved. A hugely important role is played by trade associations, such as the Society of Motor Manufacturers and Traders (SMMT) and the Finance and Leasing Association (FLA). What’s more, these associations don’t simply foster collaboration between competing organisations – they also help to drive the whole industry forward.

Collaboration breeds success

This shared goal of putting the customer first is at the heart of the movement towards collaboration, something that our business model at Zuto is founded upon. As a technology-based organisation, we are able to share our expertise with partners who join our marketplace – helping them to bring new products to market faster and to embrace digitisation and omni channel opportunities. 

It’s in everyone’s interest for the customer experience to be as smooth as possible when they are looking for cars and finance online. Clarity and the quality and speed of response are key – and technology can help to facilitate that. However, it’s important not to lose the human touch. Providing the option of speaking to a trained human operative ensures that all customers can have the level and type of service and communication they need.

A common goal

While putting customers first, our industry also has a duty of care towards employees.  Together, we’re a significant UK employer, providing many wide and varied career opportunities, but we are not known for being the most diverse. That’s why Zuto is involved in the Automotive 30% Club, a voluntary group of MDs and CEOs from manufacturing, retailing and supplier companies, aiming to achieve a better gender balance in the industry.

Through the Club’s “30 by 30” strategy, member organisations have made a commitment to award at least 30% of their senior leader positions to women by 2030.   Today, 43% of Zuto’s management team identify as women and, as part of this group, we’d like to see a more inclusive, diverse working environment across the industry. Becoming an employer of choice helps an organisation to remain competitive, but it’s important to bring everyone along on this journey of self-improvement. 

Don’t get me wrong – I’m not suggesting that competition doesn’t exist, nor that it’s a bad thing. The used car market is currently doing well. SMMT figures show that it is currently hitting a five year high in terms of sales. But we can’t take this for granted. For all of us to thrive, we need to make sure that we share common goals and a mutual desire to make ours an industry that is recognised as being transparent, fair and responsible. This will help us to realise Henry Ford’s vision, and success will take care of itself.