No dealer wants to leave their cars, let alone their profits on the lot. Ideally, every car you sell turns over into a healthy gross profit. But that's not necessarily going to happen for 100 percent of your vehicle sales.
There was a time when you could add service prices into the cost of the sale. But consumers are more informed now and padding the cost of a car is a risky tactic nowadays. Most customers today have done their homework and have shopped around and checked prices before they set foot on your lot.
So how can you get your inventory to hold more gross profit without the volume of inventory and profit stagnating on your lot?
Holding Gross on Vehicle Sales
The new challenges you face today can make old-school approaches look antiquated. Increasing prices without good reason, keeping trade-in valuations behind closed doors and sitting on cars that aren't moving won’t help you hold gross in car sales.
Be selective. The right vehicles are the ones that sell the fastest (quick turn) and yield the highest ROI. Fast turning, low-investment vehicles are often not found at auction without a significant cost of reconditioning.
You must obtain the inventory you need that will turn over. Being able to source from private parties is more important now than ever before.
Turn to individual sellers
Buying cars direct from private sellers is the solution. The challenge is the time and effort involved with communicating with private sellers.
VAN has elevated this process to be efficient and seamless, because the company was born out of the need to acquire more of the right vehicles for my dealership. We can help you:
- Move your inventory quickly – Slow moving inventory actually indicates rough times ahead. Cars that aren't moving off the lot aren't making room for better vehicles and dealers soon find themselves with a core inventory comprised of vehicles that simply don't move.
- Focus more on trade-ins – The trade-in process is the most emotional part of a customer's visit, so don't rush it. Working with them calmly but compassionately can not only get you a better deal on the trade-in, it can also translate into better terms on the new sale.
- Show transparency – Because higher prices need support. Be as transparent as possible about your pricing, especially if customers bring up a lower price from somewhere else. Explain your reasoning why you might be asking for more money for the same car as a dealer across town. They will admire your honesty! While price is important, value is the real driving force behind a client's decision. If your higher price makes sense or the vehicle delivers better overall value, you can close the deal - even at a higher price.
Let us Help
VAN can help you secure the right inventory through updated means, streamlining your process, and saving you time and money. Along with transparency, honesty and customer connectivity, these are the pillars that can transport your dealership into today’s existence and send your profits soaring.
Request your free demo and individualized market analysis today to learn the VAN way to increased car sales and profitability for your dealership.