Don’t Let Used Vehicle Inventory Shortage Bring You Down


By Josh Vajda

With prices of late mod­el used vehi­cles at a near all-time high one of the great­est chal­lenges for used car man­agers is acquir­ing enough inven­to­ry to meet the cur­rent demand.

Used car man­agers are trav­el­ing fur­ther dis­tances, attend­ing more auc­tions and pay­ing more than they ever have before, with lit­tle con­trol 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. 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
  2. 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.
  3. 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.
  4. 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.

Josh Vaj­da, Direc­tor of Inside Sales, AutoUSA, can be reached at [email protected]. Read the full arti­cle here.



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