Centurion Motor Exchange Business Plan — Products and Services
Retail vehicle sales alongside finance, insurance and value-added products, and the specification behind each.
Section 5 of 28
Products and Services
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 vehicle categories drive volume; finance and insurance products drive a quarter of gross profit
The core product is a reconditioned used vehicle, typically three to eight years old with under 120,000 km. The mix is weighted toward the fastest-selling categories in the national data, double-cab bakkies, compact hatchbacks and mid-size SUVs, with an average selling price of R245,000 excluding VAT in FY28 (about R282,000 including VAT).
Table 5.1: Retail vehicle portfolio (FY28 planning mix)
|
Category |
Typical models |
Mix |
Avg price (ex VAT) |
Target stock days |
Role |
|---|---|---|---|---|---|
|
Compact hatchback |
Polo Vivo, Swift, Starlet, Grand i10 |
30% |
R172,000 |
35 |
Volume and first-time buyers; fastest turn |
|
Sedan / crossover |
Corolla Cross, Polo, Creta, Vitara |
22% |
R238,000 |
45 |
Family buyers; finance-heavy |
|
Light commercial (bakkie) |
Ranger, Hilux, D-Max, NP200 |
28% |
R298,000 |
35 |
Highest demand; business buyers; strong residuals |
|
SUV |
Fortuner, Tiguan, Haval H6, Chery Tiggo |
20% |
R290,000 |
40 |
Margin and F&I contribution |
|
Weighted portfolio |
100% |
R245,400 |
≈ 38 |
Table 5.2: Revenue and gross-profit contribution by stream, FY29 (R million)
|
Stream |
Driver |
Revenue |
Gross profit |
GP margin |
Share of GP |
|---|---|---|---|---|---|
|
Retail vehicle sales |
692 units × R256,025 |
177.2 |
19.0 |
10.7% |
75.6% |
|
Finance commission |
65% penetration × 1.5% of amount financed |
1.8 |
1.8 |
100.0% |
7.1% |
|
Value-added products |
R3,800 per retailed unit (net commission) |
2.7 |
2.7 |
100.0% |
10.9% |
|
Documentation & delivery fee |
R2,600 per retailed unit |
1.9 |
1.9 |
100.0% |
7.5% |
|
Wholesale disposals |
104 units at auction, at cost less fees |
12.5 |
(0.3) |
(2.2%) |
(1.1%) |
|
Total |
196.1 |
25.2 |
12.8% |
100.0% |
Finance commission and value-added product income is recognised net as agent. Wholesale disposals clear trade-ins that do not meet the retail standard and are deliberately loss-making after auction fees.
Value-added products and services
- Extended mechanical warranty (12–36 months) and service and maintenance plans — the largest contributors to product income.
- Credit life and deposit / shortfall cover — offered on financed deals, with needs-based advice recorded by FAIS-qualified staff.
- Tyre-and-rim and scratch-and-dent cover — low-ticket, high-take-up products.
- Vehicle tracking — frequently required by insurers for bakkies and SUVs.
- Buying service — written offers to the public for vehicles the Company wants to stock, whether or not the seller buys from the Company.
All products are optional, disclosed separately on the offer to purchase and sold only after a needs analysis. Product income is a meaningful but not dominant share of gross profit, which limits exposure to future regulatory caps on commissions.