Conquering Used Cars
Every profitable dealership starts with a successful used car department. Used car departments are the motor that turns the wheels in a dealership. It’s not good appraisals that make a used car department profitable, it’s great decisions with great processes. Changing thought processes and updating procedures will have a major impact on the department’s success.
The Car Sharker’s used car manager training program will give managers the tools they need to slow up the draining losses, increase sales, and pile on profits. We use The National Automobile Retail Value Association’s (NARVA) certified process to gain a rhythm pattern for success. Every used car manager must be certified by NARVA and authority themselves with a certified appraisal badge.
Inventory management software is an important tool to help run a used car operation; however, a great used car manager must have knowledge of their regional market and a vision for the Internet market. Used car managers are not exempt from closing a sale on the floor. They must be flexible and work with the desk. Conventional thinking dictates used car managers should be the only ones who can bump an appraisal; however, that’s unrealistic because a used car manager can’t be available 24/7. A simple process like a trade-in verification form can slow down hiked appraisals. Implementing a customer-to-dealer full transparency appraisal process, that reflects the electronic appraisal guides, will increase sales.
Used car managers are not just inventory managers; they are strategists who need the will to win. Vehicle inflation depreciation and wholesale or trade-in values should not be a complacent factor for a used car manager. Education and staying current with the used car markets is critical for a used car manager.
The used car department should stock inventory that doesn’t compete with the new car department. Good trade-ins should go to the lot and not go directly to auction - this will generate real profit increases! Inventory aging and market pricing need to be on point. Every vehicle on the lot should be standing tall and ready to sell. Colors and diversified inventory will create excitement. Excitement generates energy which sells more automobiles.
Think of the used car department as a real-estate investment. Every 200 sq. ft. parking space on the lot should have a return on investment over 267% annually. There’s more to a used car department manager’s role than overseeing inventory, it’s being a numbers guru and an opportunist thinker. Having an open mind and being involved in every deal will increase sales and overall profits. Great used car managers have a drive mentality for new marketing technology. It’s important for a used car manager to pay close attention to the Internet department on how the inventory is displayed online. Also they need to pay close attention to how the vehicles are priced online. Price managing inventory is a key ingredient for success in the used car department and is a must to stay competitive in the used car markets.