The "Efficient Market" and Full Retail Internal Recon

David Ruggles
I've become a true believer of the premise of the efficient market as it pertains to the pre-owned business. BHPH and special finance is another issue. But given the way consumers use the Internet to shop for vehicles, initial pricing is critical. Gone are the days of marking a vehicle up thousands with the idea that we'll make what we can make in the final negotiation. That strategy these days will get you a virtual zero in terms of web hits. In other words, cost plus pricing for pre-owned as a strategy is null and void for today's modern dealer. That being the case, what happens to the practice of charging full retail for internal and recon? Folks tell me the fastest moving pre-owned vehicles are in a category where they can't be bought or traded for, they have to be "made". Using full retail for recon seems to force appraisers to stand down from those units and leave them to the independents OR if a dealer is lucky to trade for one, he will have to wholesale it or have way over the market as an

Featured Masters

No members found

 Rate a Vendor Give feedback in three quick steps

Select a Vendor & Product
Can’t find what you're looking for?
Add a Vendor  or  Add a Product