The Best Ways to Buy & Sell Your Pre-Owned Vehicles
With global microchip shortages leading to far fewer new vehicles being made, dealerships are working overtime to up their supply of used vehicles. Because there are fewer options on the table, consumers' standards for used vehicles is relatively low, meaning they're willing to compromise on the vehicle they end up purchasing.
Even with the rise in consumer demand for both new and used cars, dealerships are struggling to implement effective, consistent buying and selling strategies that streamline their internal operations and enable steady year-over-year growth.
For dealerships, the hunt is on for used inventory, and to capture it quickly and cost-efficiently. This requires you to rethink your sourcing strategies in a way that bolsters your operational work. Maximizing your inventory opportunities starts with expanding your reach of vehicles., and having a broader market to play in allows you to operate outside of your geographical bubble and source the right inventory, regardless of where it's currently located.
On the selling side, having a solid understanding of current market conditions - in and outside of your area - and how your core inventory fits into that can mean the difference between massive profits and sunken costs. Even with the demand for pre-owned vehicles at an all-time high, dealerships still need to put in the leg work in order to keep inventory consistently moving on (and quickly off) their lot.
From maximizing the value of your reconditioning process to knowing what customers expect from a pre-owned vehicle, there's plenty you can do today to start strengthening the way you sell your pre-owned vehicles.
Today, the average cost of a used car has jumped from $20,900 to $25,400, an increase of over 21% in just one year. This means that it’s never been more important to ensure the pre-owned vehicles you’re bringing onto your lot are going to be worthy investments.
With that, let’s look at a few ways you can improve the way you buy and sell pre-owned vehicles.
For Buying: Expand Your Reach
Since new car production isn't on par with consumer demand, used cars have become an appealing option. As a result, the costs of second-hand vehicles have soared, leaving dealerships scrambling to acquire any used cars that they can push into their sales pipeline.
Courting trade-ins and reaching out to previous customers with buy-back offers is one way to bolster your current inventory, but a more sustainable sourcing tactic focuses on expanding your buying bubble outside of just your geographic location.
The cars your dealership needs are out there, but up until now, they may have been out of your reach. With tools like CarOffer, you can operate outside of your geographical buying bubble and find the cars you need, no matter where they are. With transportation services offered as well, you can focus solely on sourcing quality inventory without worrying about the logistical elements.
At a time when inventory is scarce, your dealership needs to get creative when it comes to developing long-term sourcing strategies that work well in the current market conditions. Opening the door for more buying options on a nationwide scale is one such strategy your dealership should consider.
For Selling: Prioritize the Reconditioning Process
Once you bring a batch of pre-owned vehicles onto your lot, the real work can begin. In order to set the optimal price for any given car, you'll want to focus on reconditioning, gauging demand, and assessing the current market conditions. Your ability to sell the car quickly shouldn’t take priority over earning the biggest possible profit from your inventory.
When it comes to reconditioning used vehicles, think about what services will make sense for a vehicle based on its model, year, mileage and price point, and also tighten up communications within your operations - oftentimes that is a culprit for the delay in turnaround time. Quick reconditioning can be one of the best improvements you make to your operational efficiency.
Thanks to the evolving state of the tech industry and industry software advancements, dealerships now have options when it comes to embracing tools that streamline their reconditioning efforts and make the most out of their time. Continue to create new efficiencies within your reconditioning process that enable you to ensure speed and quality are a given with every vehicle you refurbish.
One last tip — customers won’t expect a ten-year-old car to look brand new, and in this market it will have to last longer than usual. Considering service incentives at the time of purchase is an excellent opportunity to build and retain customer loyalty, especially in a market where vehicle sales volume is limited.
Give CarOffer a Test Drive
At CarOffer, we provide you with a better way to buy, sell, and trade used vehicles. Designed with the dealer in mind, our solutions enable you to manage your pre-owned inventory with complete confidence and control. Working together, we can help you regain valuable time and resources for your dealership, and help position your business for whatever the future may bring.
Contact us today to request a demo or learn more about our automotive inventory sourcing solutions.