It gives further impetus to the growth of the used-car franchise concept that started with seven dealerships and now has 15, with another two poised to open in January.

OzCar managing director Brett Dale told GoAutoNews Premium that the increased shareholding by Optimus will also allow OzCar to expand along the east coast and then to South Australia, Northern Territory, and Western Australia.

It will also help OzCar launch a bailment funding program that will be rolled out to dealers next year.

“That should greatly assist funding for the smaller operator who wants to join something bigger,” Mr Dale said.

“By the end of the first quarter the bailment funding is expected to be up and running.

“Funding for used cars isn’t easy. With the bailment funding, it will make a massive difference to the business and to our new franchisees.”

OzCar currently has 15 outlets – company-owned and franchised – with five in Queensland, one in Victoria and nine in NSW.

Asked if it was possible for OzCar to go offshore, Mr Dale said it was a concept that was flexible enough “to go anywhere”.

“It can go anywhere because it’s not governed by manufacturers,” he said.

“Every market has used cars, so OzCars can go anywhere but our focus at the moment is on becoming nationwide and adding extra features to the business as we go.”

Optimus said in a statement that its shareholding in OzCar was “a platform for our business development in Australia, which is regarded as a strategic region for our growth.”

“We have reaffirmed OzCar as a trusted partner in the Australian market in which it has sufficient knowledge of the market and is committed to sound governance and strong growth. 

“When we formed the capital and business alliance, OzCar had seven sales yards. Now, it has been expanding its market share. 

“The results of our business alliance have been successful. Based on the above, we decided to enter into additional capital and business alliance with OzCar in order to enhance the speed and depth of our entry into the Australian market targeting used car related business, which we have cultivated over 30 years in New Zealand, and to enhance OzCar’s financial base and product strength.”

When it increased its shareholding to 20 per cent, Optimus nominated its Australian director John Startari to the OzCar board. 

Mr Dale said the company-owned outlets provided an established critical mass for the new franchisees as they come on board.

Speaking to GoAutoNews Premium earlier this year, Mr Dale said: “If it was just a start-up depending on signing up new franchisees there would be limited stock. 

“But because we already have (then) 11 stores going with a pool of stock, each franchisee who signs on is joining the established pool of stock and an established business with a proven track record.

“The stock pool works really well. For instance the Taree franchisee has 45 to 50 cars on his lot but he also has access to all of our cars. If we have a car he needs, for a flat fee he reserves the car and it’s his to take.

“And it works in both ways. Obviously he has cars that we may not have and we have cars that he may not have. We can choose his, he can choose ours. There is a reservation system that now works really well.

“So he doesn’t have to stock that $60,000 Mustang because he can get it from us at any time.”

He said that getting hold of stock “can be difficult and it’s not cheap, but it’s all relative to what price you’re selling at.”

“So though it’s an unusual market, you just have to move with the market.”

OzCar also runs a wholesaling tender system for its stores.

“In NSW our wholesale tender system which runs currently once a week. We get about 60 odd dealers buying all the trades we don’t want or that don’t pass the quality inspection.

“So that will be open for our franchisees to use to offload these cars if they can’t do it from where they are now,” Mr Dale said.

Alternatively the franchisees can buy cars through the tender system as well.

Mr Dale said OzCar offered a number of add-on administrative services to franchisees as well as purchasing power for various consumables. 

These were especially appealing to smaller used car dealers. He said the Taree pilot store has taken on all the add ons.

“So we do his accounting, we do his admin, we do his stock control, we do his payroll, we do his IT, we do his service and warranty bookings and management for him, and we do his reception for him,” he said.

“So he has reduced all these costs instead of having an extra one or two people around. We deliver his accounts on the fifth day of the month.

“Our dealers can choose which add-ons they want or choose not to have any. This model will work very well for current little used-car guys, whereas new-car dealers who sign on may not be interested in these add-ons because they already have the infrastructure and that’s fine, let’s just get on and improve the used-car departments’ bottom line.

OzCar, a family enterprise of Brett Dale, his father Ian Dale and James Keepkie, was first launched in 1998.

Optimus was founded as Nichibo Trading in the late 1980s as a buyer and exporter of used cars before evolving and expanding. It has business interests in used cars, logistics and property in New Zealand and Australia, owning the Dolphin Shipping lines and Usave car and truck rentals.

It formed Optimus Group Australia in 2018, invested in OzCar in November 2019 with a 10 per cent stake and then doubled its shareholding in May 2021.

By John Mellor