Centurion Motor Exchange Business Plan — Customer Analysis
Cash and finance buyers, trade-in customers and price segments, and what each contributes.
Section 8 of 28
Customer Analysis
Jump to section
- 1. Executive Summary
- 2. Investment Thesis
- 3. Company Overview
- 4. Problem, Customer Need and Value Proposition
- 5. Products and Services
- 6. Industry Analysis
- 7. Market Analysis
- 8. Customer Analysis
- 9. Competitive Landscape
- 10. Business Model
- 11. Go-to-Market Strategy
- 12. Operating Model
- 13. Management and Organisation
- 14. Strategic Plan
- 15. SWOT Analysis
- 16. Risk Analysis
- 17. ESG and Sustainability
- 18. Implementation Roadmap
- 19. Financial Plan
- 20. Funding Requirement and Structure
- 21. Debt Serviceability
- 22. Investment Case and Valuation
- 23. Sensitivity and Scenario Analysis
- 24. KPIs and Management Dashboard
- 25. Conclusion
- A. Appendix A: Scenario Parameters
- B. Appendix B: Year-1 Monthly Projections
- C. Appendix C: Sources and Glossary
Four segments account for the plan; two-thirds of buyers need finance
Table 8.1: Target customer segments
|
Segment |
Profile |
Share of sales |
Finance use |
Buying criteria |
Typical vehicle |
|---|---|---|---|---|---|
|
Young professionals |
24–35, first or second car, salaried, digitally native |
30% |
High (80%) |
Monthly instalment, fuel economy, reliability |
Compact hatchback |
|
Established families |
30–50, dual income, upgrading for space and safety |
25% |
High (70%) |
Safety, space, warranty, trade-in value |
Crossover or SUV |
|
SMEs and tradespeople |
Owner-managed businesses; contractors; farmers on the peri-urban edge |
28% |
Medium (55%) |
Load capacity, durability, availability, VAT invoice |
Bakkie |
|
Cash and upgrade buyers |
Older buyers, trade-in-led, or settlement-funded |
17% |
Low (30%) |
Price certainty, trade-in value, speed |
Sedan or SUV |
|
Weighted |
100% |
c. 65% |
The purchase journey starts online and is decided on the forecourt
- Research (2–6 weeks): buyers browse classifieds, compare prices and shortlist 3–5 vehicles; response speed to online enquiries is a decisive factor in whether they visit.
- Pre-qualification: most buyers want to know their finance outcome before committing; the Company offers a soft pre-approval within one business hour.
- Visit and test drive: the physical inspection and the salesperson’s credibility determine conversion; the published inspection report shortens this stage.
- Negotiation and trade-in: buyers negotiate on trade-in value more than on price; written, data-backed trade-in offers reduce friction.
- Delivery and after-sale: the first 90 days define the review and referral outcome.
Willingness to pay is anchored to instalments, not sticker prices
For financed buyers, the relevant price is the monthly instalment. At prime plus three percentage points over 72 months with a 10% deposit, a R282,000 vehicle (including VAT) costs about R5,160 a month; a R10,000 price difference changes the instalment by only about R180. That is why the Company competes on approval odds, trust and vehicle condition rather than chasing the lowest listing price, and why its pricing policy targets the market median rather than the market floor.