Acquiring inventory is a challenge that all auto dealerships face. Wholesale prices are high, while the supply of quality vehicles available for sale at auction is low. Do not forget about exorbitant auction fees. Then there is the issue and cost of transporting these vehicles to your sales lot. It is tricky to do so in a timely manner and keep costs down at the same time. Managing re-conditioning and evaluating trade-ins are other major factors to take into account.
Fortunately, by following certain strategies, you can capitalize on vehicle appraisals and acquisitions. Keep reading to get our tips.
Leave Room For Auction Fees
Auction fees are rising steadily and this trend shows no signs of stopping, so it is critical to keep these fees in mind when bidding on cars. They include the following:
- Online purchasing fee - $50 to $70
- Post-sale inspection fee - $70 to $115
- Buy fee - Up to $500
Always leave enough breathing room for these fees during the bidding process. Otherwise, you will end up exceeding the total amount of money you want to spend on the vehicle.
Expand Your Buying Parameters
Given the low supply, your dealership would be wise to expand your buying parameters to consider vehicles you may have dismissed in the past. You can certify vehicles that have up to 70,000 miles.
Use Your Service Drive To Acquire Inventory
The most effective strategy may be utilizing your own service department’s service drive. Using this method, you determine if cars in your service lane could fill gaps you have on your used car lot. The caveat is, presenting the sales proposal to customers in a compelling, professional way can be tricky.
The Service To Sales Mining Tool from TEXT2DRIVE™ helps you execute it. The interface makes it a cinch for sales managers to identify quality pre-owned vehicles to buyback.
First, the sales manager enters the year, make, model and trim package of the desired vehicles. After the information is selected, the sales department receives a push notification at the top of their desktop screen and on their mobile device anytime a vehicle matching that description pulls into your service department. The sales department is notified the instant a repair order (RO) is created for a matching vehicle, allowing your staff to jump on it and ensuring no opportunities are missed.
Once the Service To Sales Mining Tool has identified a prime buyback program candidate, you will have the perfect opportunity to sell the customer on the benefits of trading in their car. Your dealership makes a sale and gets the type of vehicle you need for your buyback program, and the customer gets a great deal on a new car.
While purchasing vehicles for your buyback program requires more finesse these days than it did previously, leveraging the vehicles that enter your service drive will help tremendously in acquiring high caliber cars and in motivating customers to buy a new car from you.