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Similarly, a sudden drop in usedcar prices from post-COVID highs resulted in many vehicles not being repaired. For instance, as vehicles become more complex, the cost of repairing crash parts with all the added sensors and technology might lead to higher total loss ratios as these cars depreciate.
Economic uncertainty is prompting many car buyers to act quickly, which pushes up sales and vehicle prices. According to CARFAX , both car sales and prices are rising beyond typical seasonal patterns. This spring, usedcar price trends show nearly double the increase compared to the same period last year.
In today’s competitive usedcar market, dealerships can’t afford to rely on guesswork during vehicle appraisals. Getting it right requires more than a quick look under the hood or a test drive — it demands full transparency into the car’s history, condition and features.
Earlier last week, I had a conversation with one of our dealer partners who had a record-breaking August driven entirely by usedvehicle sales. With tight supply and a flat-feeling used market, I asked, how did he turn it into the driver of his record month? Heres how you as a leader can help your team crush usedcar sales: 1.
What a car shopper cant find on them wouldnt fill a thimble so why should you consider adding digital vehicle portfolio (DVP) content to this fantastic marketing site? Thats a great question, and every dealer, GM and usedcar manager should ask it. Customers see why the vehicle is priced the way it is.
Usedcars generate 33% of a dealerships revenue, not even counting service. Youd expect a third of vendors to focus on pre-owned, with half of those helping dealers buy cars faster and cheaper. Only 24 out of 533, or 4.5%, of vendors at NADA 2025 help dealers in any way buy, obtain or acquire vehicles from any source.
used-car transactions already happen peer-to-peer, and NADA expects that slice to keep expanding in the next few years. vAuto) March 2020 – COVID and chip drought slash new-car output; wholesale values begin a record run (Used-car CPI +45% YoY by late 2021). usedcar news) Feb. Cox Automotive Inc.)
They come from: Usedcar managers who cant locate keys for vehicles they need to move to the sales lot. Reconditioning managers who lose key-to-key time when keys and vehicles cant be quickly located and moved along. Now, you can visualize how keys and their vehicles move through your operation.
million new-vehicle sales for the year, up 1.2% Battery Electric Vehicles growth is estimated to increase, interest rates are becoming more favorable for consumers and an optimistic economy bodes well. At the same time, without process improvement, the profitability per vehicle (PPV) of the usedcar will continue to evaporate.
The adage time to line is always fashionable when reconditioning usedcars so you can retail sooner and profitably. For over a decade, dealers have confirmed that a three-to-five-day time-to-line recon operation gets usedcars frontline ready faster and improves inventory turn.
Consider these actions to reduce market risks to usedcar profitability. Appraisals As you evaluate potential trades and walk private-party purchases and auction cars, use your good sense, but be humble and back that estimate with a VIN scan. Plus, these vehicles can move directly into recon, avoiding staging time losses.
I mean growing sales margins, making more confident trade appraisals and working the usedcar operation to increase cash flow. More Efficient New and UsedVehicle Sales: Missing a service delivery promise chills retention. Vehicle and key tracking bring enormous efficiencies to the recon process.
As I draft this article, dealers are considering the impact of federally mandated tariffs against trade nations for which the domestic automotive industry relies on (or finds economically beneficial) for manufacturing, parts supplies, vehicles and reciprocal trade. Heres how well-practiced reconditioning fights margin squeeze: 1.
Vehicle service contracts (VSCs) are a powerful tool that can help dealers improve profitability, retain customers and even encourage new purchases down the line. By securing a VSC post-sale, dealers can lock in this relationship, encouraging repeat business for future car purchases. Benefits of Post-Sale VSCs 1.
BMW of El Cajon is using Service Suite Pro to not only enhance the service departments operations but also improve relationships with its customers. Its making Girons and his employees jobs easier by streamlining processes while also adding clarity to customer interactions when talking about their vehicles.
How Dennis Dillon Auto Group Built a Winning Private-Party Buying Program Most car dealers think the best usedvehicles are found at auctions. We talked with their usedcar manager, Bryan Bough, about their private-party buying program. Theyre wrong. The real gems are sitting in your customers driveways.
To mitigate the impact of tariffs, dealers should focus on diversifying their F&I product inventory and offering a mix of options for both new and usedvehicles. As a result, dealers must be prepared for near-term changes in vehicle pricing and availability.
Graphic: Cox Automotive Used-vehicle inventory levels at the start of June dropped slightly month over month , but inventory was relatively flat compared to early June 2024, according to a Cox Automotive analysis of vAuto Live Market View data released June 13. Used retail were at 1.53 stood at 2.21 million units, down from 2.22
Discover a smarter usedcar inventory sourcing strategy. Learn how to find high-margin vehicles outside auctions and boost your dealerships ROI. The best cars dont hit the lane; theyre in someones driveway. However, anyone who has ever bought a car off Craigslist knows that its just not feasible at scale.
But how do you buy the right cars, right? In other words, how do you find the vehicles that perform well in your market and acquire them at a good price (relative to wholesale)? Not only is the auction profiting off you, but you’re paying close to $1,000 per car just to run it through your shop, eroding your margins even further.
The presidential tariffs are expected to cause manufacturers to raise vehicle and parts prices, which will inevitably put more affordability pressure on car shoppers and consumers. Auto dealers face new, unprecedented challenges that demand a strategic approach to wealth-building and F&I portfolio management.
He sold anything from refrigerators to usedcars to real estate. Over the years, he launched brake shops, gas stations, and Desert Rat stores that specialize in off-road and performance accessories for 4×4 vehicles. Air Force , Jack earned his degree, returned to Tucson , and opened his first business just outside the base.
In today’s economic climate, consumers are grappling with extreme inflationary pressures affecting vehicle ownership. Auto dealers are particularly impacted, facing challenges in vehicle availability and profitability. The Impact of Inflation on Vehicle Ownership Inflation creates significant increases in the cost of vehicle ownership.
You need to appraise and price vehicles with the most up-to-date information possible in a market that can change quickly. But even with tools in place to help you, you’re still relying on your experience and if you miss on a vehicle, it’s tough to recoup the margin. So, what are the biggest issues leading to misses on usedvehicles?
Economic uncertainty is prompting many car buyers to act quickly, which pushes up sales and vehicle prices. According to CARFAX , both car sales and prices are rising beyond typical seasonal patterns. This spring, usedcar price trends show nearly double the increase compared to the same period last year.
It’s no secret that dealers are facing a complex set of challenges when sourcing usedcar inventory. While supply constraints have been a major focus, it’s also important to consider how demand dynamics are influencing the usedcar market and complicating dealerships’ ability to source inventory effectively.
Dealerships in 2024 will continue to face usedcar sourcing challenges. I recently read an article that netted the issue: “Dealers navigating a used-vehicle market that already allows little room for error are eyeing another obstacle: worsening used-car availability.”
Private-party vehicle acquisition is one of the most talked-about trends in retail automotive. Pros: o Complete Control: You pick the cars and the price. o Unique Inventory: You can’t find these personally touched vehicles anywhere else. You aren’t at the mercy of someone or something else. The intentional dealers win here.
Usedvehicle acquisition is competitive, expensive and nuanced, even for the best car dealers. While some dealerships are happy sending their usedcar manager to the auction, others who aren’t satisfied with that approach need to get a little scrappy and think outside the box. He breaks down his framework for each.
For instance, when a car is acquired via auction or trade, the service department often remains uninformed, preventing them from making timely decisions about capacity and work prioritization. This lack of visibility delays the car’s journey to the sales lot, increasing holding costs and reducing potential profit.
A 2022 Bureau of Labor Statistics report reminds us that from the 2007 to 2009 recession — and through the onset of the pandemic in 2019 — “car and truck dealerships faced an economic shock and compressed profit margins on new vehicles.” CarEdge Data pointed out that February inventory supply ranged from two weeks to two years.
The usedcar market is more competitive than ever, and dealerships must stand out. Buyers now compare vehicles across platforms, scrutinizing every detail. Vehicles arent just products they tell stories. Adding service records builds trust, showing the vehicle was well-maintained.
Imagine you’re in the market for a usedcar and stumble upon a dealership’s website that welcomes you into a unique, colorful, interactive and informative-rich virtual showroom for each vehicle in your usedcar inventory. contributes to a significant $589 average gross profit increase per usedcar.
These circumstances have resulted in many customers being underwater with their pandemic-era purchase, and upgrading vehicles has become financially difficult. This in turn has resulted in a surplus of new cars sitting on lots. To avoid holding costs, dealerships must sell new car inventory quickly. Here’s how: 1.
This stands in sharp contrast to dealers who often face the challenge of uncertainties in usedcar acquisitions due to a lack of comprehensive data. Traditionally, dealers have relied heavily on physical inspections and limited historical data when acquiring usedvehicles.
Understanding Market Absorption Market absorption, in essence, means acquiring a significant share of available products — in this case, private-party vehicles. He ran the usedcar department for his grandfather’s dealership, Chuck Patterson Toyota. You can use the same strategies, but for other segments, not brands.
Stale Data: Guesswork and gut once ruled usedcar acquisition, but please, no more! Usedcar managers using OEM build data and vehicle condition-based insights make smarter stocking and pricing decisions — vehicles that sell faster so inventory turns faster. Time Killers: Speed is non-negotiable.
Dealers today enjoy more predictable usedcar results because they leverage strategic reconditioning software’s robust efficiency metrics called time-to-line or T2L, a process we introduced to the market in 2010. The profitability of usedcars has been, until now, primarily determined by demand and availability.
But I do because my company’s products and services interface with the GM at a crucial point: usedcar profitability. I know enough GMs, fixed ops directors and usedcar managers in all sizes of dealerships and groups to understand how important vendor and product trust is to them.
After years of being overshadowed by emerging electric vehicles from Tesla and other brands, the hybrid — a gasoline vehicle that has both an internal combustion engine and an electric motor — is enjoying a resurgence in 2024. Or Are You Aligning Your Dealership Too Closely with EVs? EV sales have slowed in the U.S.
Car makers spend billions of dollars yearly on vehicle design and new model advertising. Today, this pattern is packaged into digital vehicle portfolios (DVP), the visual, enticing and descriptive Wish Books grown-ups now use to shop and buy usedcars from your dealership. billion this year.
Over a monthly timeframe, analyzing why one technician might caution 20 and fail six vehicles in the brake category, while a neighboring technician cautions seven and fails two with a similar report volume and mileage, becomes pivotal.
After pouring countless amounts of energy into the never-pretty process of getting usedcars through the shop faster and on the lot for sale — then what? It’s common knowledge that the real rewards and internal gains only come when the car finds its new owner. The vehicle information you can pack into a DVP is considerable.
If you want to manage inventory holding costs and bolster your earnings per share, consider how your usedcar reconditioning operates. Cars get sale-ready within three to five days of acquisition. Those who use the scoreboard as a monthly progress metric have more consistent three-to-five-day time-to-line.
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