Notifications & Messages

Jared Hamilton
From: Jared Hamilton
Hey - It’s time to join the thousands of other dealer professionals on DrivingSales. Create an account so you can get full access to the articles, discussions and people that are shaping the future of the automotive industry.
×
Phil DuPree

Phil DuPree President

Exclusive Blog Posts

10 Things in Sales that will Never Change

10 Things in Sales that will Never Change

Here is my take on 10 things that will never change in Sales.  When you have a clear understanding of how these 10 things work, you'll undoubtedly…

Are You Selling Service Contracts in the Lane?

Are You Selling Service Contracts in the Lane?

Several dealers reported record months in the service drive. With a record number of RO’s hitting the lanes each day, it is a gold mine for selling s…

Women in the Dealer Workforce: Where We Are & Where We Can Go

Women in the Dealer Workforce: Where We Are & Where We Can Go

It’s no secret that women make up a small portion of the dealer workforce and turnover among women is high. By not attracting and retaining women in the …

Car Subscriptions - Q and A with Bill Playford

Car Subscriptions - Q and A with Bill Playford

I had the chance to interview Bill Playford about car subscription services, and how they're going to change the marketplace. Take a look what this ins…

Be The Exception

Be The Exception

How brilliant marketers find and follow what makes their stories different in a world full of average content DrivingSales is excited to announce th…

Don’t Let Used Vehicle Inventory Shortage Bring You Down

 

With prices of late model used vehicles at a near all-time high, according to this latest article by Automotive News, one of the greatest challenges for used car managers is acquiring enough inventory to meet the current demand.

 

I’ve talked to used car managers who are traveling further distances, attending more auctions and paying more than they ever have before. Unfortunately, used car managers don’t have a lot of control in terms of what comes available at auctions and what the market demands they pay for good inventory.

 

What they do have control over, however, are the processes within the dealership that determine how leads for used cars are handled. Implementing the following best practices in the Internet Sales department may help alleviate some of the pain felt due to current lack of inventory:

 

  1. Encourage Flexibility. As the Automotive News article states, when the price of a used car reaches 60% of a new car, often times the consumer will opt for a new car instead. So when an Internet leads comes in for a used vehicle and you don’t have the inventory to match it, highlight new vehicles in the same style and price—or even more important, payment—range, as the used vehicle requested. Expanding the selection of vehicles and providing side-by-side price comparisons may change the customer’s mind.

 

  1. Actively Solicit Trade-ins. Tag every email correspondence to customers with an offer to buy their trade-in vehicle—whether they buy from you or not—to drive traffic into your showroom and help boost your inventory. If you use a trade-in tool on your website, such as Kelley Blue Book’s Lead Driver, aggressively pursue the vehicles that match your inventory needs, offering hope that what you will pay often exceeds the online estimates.

 

  1. Don’t Give Up. Instead of closing out leads that you couldn’t help due to lack of inventory, start a “want list” of vehicles requested and provide it to the used car manager weekly.

 

  1. Hold Firm on Prices. Used vehicles are turning quickly and hard to replace right now, which reduces the amount of potential substitute vehicles in the market and makes the ones you have even more valuable.

 

What other best practices do you recommend to address the used vehicle inventory shortage? 

 Unlock all of the community & features  Join Now