TRA - Turners Automotive Group [previously TNR - Turners Limited]

[Beagle]

- From that Australian article kindly provided above Data analytics firm, Datium Insights, provides a weekly report on the used vehicle market. In the week to October 9, used motor vehicle prices rose by 0.7 per cent after rising 4.4 per cent in the previous week.

WOW...hope the "experts" running Turners are on top of this and taking advantage. The days of reducing car prices that have been on the car lot for a wile are over...the best move is to put them up !

[MJordan23]

And yet today there are over 1000 cars discounted on the Turners website. Of approx 2800 cars.

[Jaa]

What happened to all those idle rental cars? Surely they are available to the second hand car market at the right price.

[Beagle]

I hear talk they weren't enough to meet demand from customers wanting near new cars. (Don't forget huge supply chain interruption from Covid with new cars).

[clearasmud]

It isn't just that.
The ice car manufacturers need to raise prices to finance their way to an ev future.
Biggest move in a century.

[Baa_Baa]

And still no announcement or advertising (thatI’ve seen) for their new car subscription service. You really have to dig for it on their website to find it, and only 29 cars available! Makes you wonder about their conviction on the Carly enabled subscription service. Probably cannibalises their used car sales, so some strategic conflict to work through? A couple of mill $A not a bad investment to position for car subscription, but you’d think they might have put more effort into promoting it? Quite confusing really

[Beagle]

Maybe a soft launch for the car subscription service with Carly given the current Covid situation in parts of Australia. ? But that doesn't explain the soft launch here...who knows, maybe there's very limited demand at present. Despite level 1 here the idea of sharing cars via a car subscription service...I dunno...good concept but is this the right time with "sharing" for it to get any real traction ?

Tailwinds are so strong in the used car sector I think Turners will do pretty well despite some pretty average execution in certain area's.

[toddhunter]

And still no announcement or advertising (thatI’ve seen) for their new car subscription service. You really have to dig for it on their website to find it, and only 29 cars available! Makes you wonder about their conviction on the Carly enabled subscription service. Probably cannibalises their used car sales, so some strategic conflict to work through? A couple of mill $A not a bad investment to position for car subscription, but you’d think they might have put more effort into promoting it? Quite confusing really

Hi all I see there are a few questions/comments on our subscription service...we are very much in soft launch mode while we iron out any kinks which is a pretty typical approach. Marketing is very PR and digital focused, and ramps up over the next few months as we get users and case studies that we can share with the public.

Advertising dollars are very targeted so quite likely you may not see the ads. As a number have commented on here supply is very short in used cars because of the supply constraints in new car supply chain...so we will build subscribers and stock levels as demand calls for it. We don't really know what the demand will be but it makes sense commercially to increase marketing spend as we get a feel for levels of demand. The great thing about digital is that there are very clear and transparent metrics on cost of customer acquisition, and I think there would be plenty of criticism the other way if we spent a ton of money on tv advertising with little to show for it.

Also subscription isn't really about sharing...when you are subscribed to a car you have 100% exclusive access to it, as opposed to a service like City Hop which is car rental by the hour ... much more of a sharing model. I suppose it could be called long term sharing as the minimum time to subscribe is 30 days. And a reminder each car "deep cleaned" after it is returned of course!

if anyone has further questions happy to answer directly @ todd.hunter@turners.co.nz

[Davexl]

Comment from Aust on re-purposed buying power - good for TRA...

“But you know I think our cautiousness around the consumer has probably been ill-placed. Remember too that Australians as a whole used to spend some $40 billion or so travelling offshore in any given year. That equates to about 12 per cent of retail sales.”

[sb9]

Another mouth watering quarterly divvy just landed in bank a/c, thanks TRA and team