[b]Wholesale Prices Increase Sharply Again in June[/b]
According to a recently released report, Wholesale used vehicle prices (on a mix, mileage and seasonally-adjusted basis) moved significantly higher in June. With a reading of 114.1, the Manheim Used Vehicle Value Index is now 5.8% above its year ago level. The adjusted increase in used vehicle values since the beginning of 2009 has been 16.4%.
Given that, to date, dealers have been able to pass the higher auction prices on to retail customers, the increase in wholesale prices has come without downside consequences. Certainly, auctions have enjoyed the resulting rise in conversion rates, and sellers have benefited from better residuals and higher recovery rates. But, the cause of higher wholesale prices does stem from a negative – namely, the significant reduction in potential supply available to the auction industry.
Those Dealerships that are clearly identifying the specific vehicles that they need and then acquiring them from every available source are growing their business. What is working particularly well is a â€œbuy backâ€ direct mail piece to your customers who own the particular vehicle that you need. The response that stores are getting using this approach is surprising. In a nutshell, here is how it works:
Used Vehicle Acquisition Campaign
Valuinsight uses its proprietary technology to provide the following:
â€¢ Your top 10 quick selling, profitable vehicles of which you are short — You need them now!
â€¢ Analysis of your Sales and Service files to identify those customers who have the vehicles
â€¢ A clean acquisition list with the following criteria:
4 Only individual vehicle owners (No companies).
4 Only owners with valid addresses.
4 Only owners within reasonable distance from the store (20 to 50 miles).
4 Only those owners who have the vehicles that you need.
â€¢ An eye catching mail piece guaranteed to get the vehicle owners attention.
â€¢ Team training on how to best follow the mail sale with phone calls.
4 We provide campaign manifest, phone scripts and 30 minute web conference
4 We know the words and valuation techniques that increase the likely hood of buying
the trade at a good number.
4 We get your team excited about acquiring the right vehicles and making a car deal
at the same time!
â€¢ $350 initial, data extraction, analysis, cleaning, list generation fee.
â€¢ $150 for quarterly update.
â€¢ Starting at $0.65 per piece.
If you would like to learn more about this great gross producer, please call me anytime.
561 368 7810