The winds of change are blowing like never before. I have been in this crazy business since 1970 and have seen a lot of different things over the years. Never before in our history has it been like it is now. I clearly remember Viet Nam protest marches, Oil Embargo’s, log gas lines, extended manufacturer strikes, the very first rebates, 19% prime interest rates and on and on. Used vehicles have always played an integral part of building our bottom line. It is no secret that the financial statement is simply ink on paper until we cash the trades and the subsequent trades on those trades. Remember washout sheets?
History is being made now and enfortunately, for many dealers that were identified yesterday (Chrysler, Dodge, Jeep) and many more who got their “Dear John” letters today, (GM) It is clear that the winds of change are howling at their door. The “limited use” facility that they operate out of has a severely diminished value without a franchise. The only way these stores can survive is to grow their used vehicle and service departments.
As you may know, I have always been a strong proponent of utilizing, on a daily basis, an inventory management system. There has never been a more crucial time in our industry for dealers to implement a system in their stores. They must be able to take advantage of technology and be proactive in making a change in their operations. New vehicle trades are going away for a couple of thousand stores. These lost sale opportunities must be addressed immediately. There will be survivors and their will be casualties. From my point of view, you still have time to choose which category you will fall into.
If you would like to talk about implementing a growth plan for your store, please feel free to contact me anytime.