There’s expected to be a 2-3% price drop in the used car market this year, couple that with a compression of 30% on margin compared to the last 5 years and it’s a tough playing field.
Here are 5 ways to improve your efficiency in used vehicle sales.
- Source more cleverly, technology can help you expand your buying radius to around the 100-mile Another thing to remember is that 40% of Manheim’s purchases are digital.
- Appraise better, try and keep a cost-to-market average of 84% across your whole inventory. Aim to purchase 30% of stock from service customers; it’s an easy way to find good stock and generate sales.
- Sell quicker; most dealerships are listing their cars on the fifth day after acquisition, make sure yours go up for sale on day 1. Adjust pricing every 7 days instead of 15.
- Inventory management, drop you maximum vehicle age. 45 should be the new 60 and 30 the new 50% of stock should be sold in the first 30 days. Ask for discounts from reconditioners, 5-10% will help margin.
- Manage your dealership properly, make sure your best people have more time to do better things. Use technology like a car appraisal app to save time and streamline.