In a word, yes! Dealerships need to be aggressive in private-party vehicle acquisition to stay competitive in today’s market. “Anyone that isn’t aggressively going after acquisitions is missing the boat,” said our special guest Gary Wade. “We’re in a very, very aggressive market still, and if anyone’s thinking the ceiling is going to fall, they’re going to leave themselves very short of the lifeblood of their dealership.
Why is Being Aggressive a Successful Strategy?
The automotive market has become extremely cutthroat of late, with the chip shortage impacting new vehicles and an influx of used car competitors such as Carvana scooping up private party models within your local territory. While sellers used to have limited options when it came to selling their old cars, they’re now faced with an overwhelming plethora of eager buyers.
Providing a simple, straightforward, and competitive offer helps sellers choose to work with your dealership, but that doesn’t always mean you’ll earn the deal on the first try. With so many buyers vying for sellers’ cars, you’ll need to be aggressive—without being obnoxious—in order to keep their attention.
“The most important thing you can do right now is acquire inventory,” Wade continued. “It’s the only thing that’s going to keep you going.”
Are New or Old Listings Better?
While you may spend a significant amount of time dealing with used vehicles, many sellers are either new to or inexperienced with the process, meaning they may not know a good deal when it’s first presented. Sellers want to get the highest profit from their vehicles and are likely to hold out until they feel comfortable with a number; because of this, it may take several tries or other lowball third-party offers to get them on board with your deal.
New listings have the appeal of scooping up hot new vehicles before they’re gone but that doesn’t mean old listings should be ignored. Vehicles listed on page two may benefit from:
- Lower prices: Sellers who have been listed for a while may be anxious to sell and willing to drop their initial asking price.
- More negotiation: Even if a seller hasn’t proactively dropped their price yet, the longer they’re on the market, the more open they become to negotiation.
- Smoother transactions: After potentially engaging with outside scammers or difficult private buyers, sellers may welcome the idea of working with a trusted dealership.
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