Today’s demand for used vehicles remains strong but unfortunately for dealers vehicle supply is tight and wholesale prices are high. And there are only a limited number of options for obtaining them, as well.
Of the few ways to acquire used vehicles - auctions, trades, wholesale, and private party sellers, each involves its own unique process, skillset, and experience. And two of them involve consumers, which requires an entirely different skill set than acquiring vehicles from auctions and via wholesale.
These factors pose real challenges for dealers today - both franchise and independent, especially for those savvy enough to pursue the acquisition of vehicles from private party sellers - a practice that we have built our entire company on.
But if you are going to remain competitive in today’s (and tomorrow’s) marketplace, acquiring vehicles from consumers on the street is not only recommended, it’s probably necessary.
So, whether you are just getting into the consumer vehicle acquisition business or are already embarking along this path, what are some known proven ways to go about this effort effectively - and most importantly, profitably?
In a recent conversation during one of our Best Practices and Training Webinars, wholesaler Aaron Gomez from KMG Management stated that, “It's a lot easier than it may appear to get into the consumer vehicle acquisition business. And the fear of having to hire someone who's going to be that $10 or $20,000 a month guy is not necessarily the direction you have to go for this position.”
As Gomez explains in the video, someone that is transparent and not afraid to talk with customers, who has great follow-up skills - these are key attributes you should be looking for. And also a positive attitude, having ability and vision to grow oneself within the company and generate gross for the dealership.
What Gomez is getting at here is the idea of identifying people in your dealership that already demonstrate these attributes, and then cultivating them from within the dealership as opposed to looking outside for experienced (and expensive) talent.
Key Attributes to Look For Internally
- Ability to be transparent
- Not afraid to talk with customers
- Great follow-up skills
- Positive Attitude
- Vision and ability to grow oneself
“All of us, says Gomez during the webinar, referring to the others on the webinar, “have been able to watch people grow [from within the dealership] and develop and become a crucial part of this business.”
“If you are a large dealer group and paying retail for all of your cars,” Gomez points out, “you are going to be in a bad position when the market swings or when the book drops when sales slow. Hiring people from within and cultivating them from the ground up is a smart way to go, and there are people like this in every dealership across the nation.
“It's an opportunity waiting to be expanded on,” Aaron proclaims.