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A trend is developing in the used car industry: prices on used cars are up 30% since 2008 and they could go even higher. It’s not uncommon to see a 1999 Toyota Corolla on the road and it won’t be sputtering along covered in rust spots, either. Simply put, cars are being built better to last longer. If a car buyer can’t afford a new vehicle, they know they can put faith in a used car to last them longer than just the drive off the lot. With demand (and prices) on used vehicles growing higher every year, do you have the right stock of pre-owned vehicles? What’s your plan to get these on your lot?
Gas prices are at a similar high, so car buyers are looking at more fuel efficient options, like the Toyota Prius or Chevrolet Malibu. Car auctions may have been your go-to for a used Prius or Malibu in the past, but every other dealer will be there as well.
So how can you get the best deals? Your customers. Use your database to specifically target which pre-owned vehicles you’d like to stock up on and set into motion a buy back campaign. If you already know all of the individuals who bought a Toyota Camry from your dealership in the last four years, it will be easy to target these cars specifically to buy back. You don’t need to go to an auction, where the prices will go up and up as dealers try to outbid one another; just look at the cars you’ve already sold.
Get your salesman involved, too. If they see a 2007 Chevrolet Malibu drive on the lot, offer an incentive for every appraisal they can get for a potential buy back from the car’s owner. Who knows – your stock of pre-owned vehicles could literally drive themselves onto your lot.
As long as this trend in used cars keeps up, the demand amongst dealers to bolster their pre-owned inventory will be high. So where will you be getting yours from?