Leading car yard brand drives for franchisees

U-Sell car yards is looking to expand in Auckland and open other franchised centres throughout the country, says Laurel McCulloch, broker with Link Business Broking in Ellerslie.

"A U-Sell car yard is a car yard with a difference," McCulloch says. "Customers, for a small charge, can display their cars for potential purchasers to see them, test drive them, buy them for cash, or finance the purchase.

"U-Sell is a New Zealand franchise system with a proven track record, good business model and a lot of support for new franchisees," she says.

McCulloch says the brand was established in 2008 and the franchisor, with extensive experience in small to medium businesses, has spent the last six years developing this U-Sell brand to enable franchisees to have successful businesses.

"A U-Sell car yard looks like a normal car yard but the majority of the cars on display are owned by members of the public, local car dealers and traders wanting to sell their vehicles. Some cars owned by the franchisee may be on the yard also.

"The actual business model for the U-Sell franchise is that of simply renting out space per vehicle on a monthly basis. Therefore the U-Sell franchisee isn't required to buy large volumes of cars as stock and then have the headache of trying to sell them as quickly as possible."

Along with the monthly rent from customers, U-Sell franchisees are required to become Registered Motor Vehicle Traders which enables them to profit from trade-ins, private sales and vehicle import consignment sales etc. McCulloch says vehicle sales can contribute significantly to the profitability of the business.

"U-Sell has also developed secondary products and services to add to the income of the yards. These products include finance commissions, insurance commissions, vehicle grooming, Warrant of Fitness renewals, vehicle registrations, car battery replacements, contract signing fees and website advertising. If customers don't want to deal or negotiate with buyers an agent's fee can be charged by the U-Sell franchisee for successful sales."

McCulloch says the typical value of vehicles sold on a U-Sell yard is generally between $3000-$20,000.

"They do, of course, sell vehicles of higher values, too," she says. "Usually the customer has owned the vehicle for a number of years and is simply looking to dispose of it as easily and as quickly as possible."

A secondary type of customer is car dealers wanting to sell trade-ins they don't want on their yards especially if they are a specific brand dealer. "These can be a good source of income and they put cars on the yard."

McCulloch says the majority of the vehicles sold on a U-Sell yard include: private cars, four-wheel drives, vans, utility vehicles, people carriers, caravans, motorhomes, motorbikes and trucks. Boats, tractors, jet skis, trailers, quad bikes and diggers are also displayed at the yards.

"Being in business for a while has seen the U-Sell brand weather the global financial crisis and still be able to grow the business," she says. "The U-Sell yards have sold over 10,000 vehicles since 2009 and [it] has developed a very sophisticated website which enables customers to view vehicles, raises the profile of the brand, have vehicles sold by auction or a 'buy now' price. Franchisees, who have an exclusive territory to work in, can also access additional areas of the website to allow easy entry for updating information of vehicles on their yards."

McCulloch says U-Sell is now keen for others to join the brand and tap into the experience already gained in the market. "Franchisees don't need to be car salespersons as such but obviously this would be an advantage. More importantly, U-Sell is looking for people with a passion to be successful, a commitment to professional development, and great customer service. The initial training is comprehensive in all aspects of the business with ongoing support, especially when starting."