Hint: It involves implementing a digital retailing strategy with messaging woven into it. And we’ve got a guide to help you make it work. SEE HOW
The combination of consumer demand, increasing off-lease supply, and record-setting lease penetration is creating what could be sustainable momentum for the certified pre-owned (CPO) market.
To provide context, consider the following market dynamics:
As these market dynamics unfold, used car managers will need to source CPO inventory more wisely than their competition. To help stay ahead and grow market share, I suggest two strategies:
Executing these strategies effectively will require a proactive and data-driven strategy. For example, intentional off-lease marketing using data-mining software enables you to bring consumers back into the market earlier than they otherwise would have considered and before the traditional 120-day lease-end campaign. The net result is:
This is how it works: By daily monitoring of customer lease activity, credit criteria, and the impact of trade values against market factors like rebates and incentives, you can identify opportunities to buy out customers’ existing leases and put them into new vehicles for about the same monthly payment.
Here’s where you’ll find these opportunities:
Data-driven preemptive strategies can help reduce cost of sale to $200 a car or less, two-thirds the industry average. They favor the proactive dealer seeking to solidify market share.
Brian Skutta is CEO of AutoAlert, Inc., North America’s premier data mining, lead generation, and sales opportunity provider. Skutta brings to AutoAlert more than a decade of leadership in helping auto dealerships sell more vehicles and retain more customers. He has a proven history of successfully managing innovation and growth, most recently at VinSolutions and Autotrader.com’s Trade-In Marketplace. Reach him firstname.lastname@example.org or visit www.autoalert.com.