Understanding Used Car Operations Formula.

(Great understanding of Velocity + Great understanding of Profit Time + great understanding of Turn = Great Cultivation of Profitability).

Velocity is not a word. It is a well executable engineered plan to meet high profit expectations.

Making money in a margin compression market is a talent, planning a head, knowing your market needs, understanding velocity by implementing Vehicle Velocity Retail (VVR) not Per Vehicle Retail (PVR) which allows you to engineer your end of the month statement. Changing your old ways of selling cars and being up to date on new marketing trends is a good start. Just remember (if you keep doing what you have been doing, you will keep getting what you have been getting). Please look at my Linked-in dot come for the full image as I can't get it to full size in this post. 

People like to buy they don’t like to be sold.
Dealers like to sell. They start selling before giving the customer a chance to buy.
Make the customer welcome and comfortable being in your store.
Give them a chance to choose what they want before offering what you want.
Give them a chance to buy before you start selling.
Help them to choose if they need help.
Help selling them if they are afraid to buy.

1. First rule is to recondition the car to sell. Cars with blemishes and defects will set and get passed on.
2. Price your cars to sell from the beginning. Taking a shot at the market with a high price will win you one out of twenty and you will lose time and gross.  A fast turn will ultimately improve the numbers and the bottom line.
3. CPO 45-50% at least of your core inventory or 25% of used inventory.
4. Market the car correctly, Pictures, description, Color, options, CARFAX. Sell with confidence and don’t leave any apologies that will lead to discounting the car.
5. Check your Vauto merchandising screen more than once a day. Make sure your syndications are all in place.
6. View your cars on your sources of advertising to see what your customers see.
7. Watch your pricing daily to make sure your cars are positioned to sell with your competitors and in your market. Do not sleep on your price. If a car is not selling it is always one of two things or both. The price or condition.
8. Pass 45 days in stock you must have an exit strategy to sell the car in the next 15 days. Remember to compare the auction and what you can retail it for.  Make a decision to sell car, get a trade and F&I.  Selling at the auction 15 days from now will encore a loss most of the time.