How to Sell More Cars Even During This Insane Used Car Shortage
With car manufacturers still unable to get their hands on the chips needed to build their vehicles, new car buyers are being pushed towards the used car market where the supply is low, demand is high, and prices are even higher.
Although the world seems to be recovering from the pandemic, used car prices aren’t.
For you as an independent car dealer, on the other hand, it’s harder than ever to keep your inventory filled with the cars everyone is so desperately trying to get their hands on.
So, how do you go around the used car shortage and get your dealership back up and running?
Let’s see what some of our dealers have been doing!
1. Buy from Private Sellers
This solution is actually more common than you might think.
A lot of our dealers turned to buying from private sellers after auction prices started soaring lately. It began by accepting trade-ins from their buyers. And that’s when some dealers decided to fill up their inventory solely with the cars they get from private sellers.
Doing this, they made sure their car lot never went empty. And they always ensured to buy only the cars they could flip for a very good profit.
Since sellers just wanted to get rid of their cars to buy another one, their asking prices weren’t as high as auction cars. Even though it was the other way around just a little while ago.
Because dealers know a good deal when they see one, their sales skyrocketed in a matter of weeks, not months.
2. Turn Sales Reps Into “Buy” Reps
Just like you incentivize your sales reps when they make a sale, pay them a little commission every time they bring a good, profitable vehicle to your dealership. Doing this means that every one of your employees will be actively looking for used cars.
It doesn’t have to stop there.
Find out how you can fill up your inventory today.
Just like you offer a reward when customers refer their friends to buy from you, offer them the same reward when they refer their friends to sell their used vehicles to you.
Depending on the size of your staff and customer base, this could make your dealership look like it’s completely escaped the shortage that’s been paralyzing the entire used car market.
3. Buy Cars from Past Customers
Get in touch with your past customers and check if they want to sell the cars they previously purchased from you. Since you’ve already built mutual trust with them, buying from them is going to be a seamless experience.
Your past customers may want to sell their cars as soon as possible to get their hands on new or used ones. Because you’re buying directly from consumers, the prices you’ll buy the cars at are going to be more affordable than those at auctions.
This way you can start reaping profit once again on the same cars you already sold earlier.
Which of these steps are you taking to get back into business?
Let’s do a quick recap.
To sell more cars even during the used car shortage, you need to follow these tried-and-true strategies:
- Buy cars from private sellers
- Incentivize your staff and customers to bring in more used cars
- Get in touch with your past buyers
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