Talk Around the Lot
Used Cars Are NOT Fine Wines… Don’t Let Them Age!
It’s sad but true, unlike fine wines, Used Vehicles do not get better with age. Our used vehicle inventory management software will prove it to you. As much as you may LOVE that 2016 Elantra that you “stole” on trade or picked up at the sale, you just can’t afford to let it have a 60 day birthday on your lot. Thank it for its service and let it go. Whether you wholesale it out or do a specific marketing push for that unit, whether coupled with a price drop or not, in order to retail it, you’ve got to get it off your lot before the 60 day mark. Doing so will save you money… the data just doesn’t lie.
Want proof? Pictured below is a store’s actual numbers for the past 365 days.
The aging buckets display the actual retail and wholesale performance based on the age of the vehicle when sold. Clearly you can see the inverse relationship to gross and age. Simply stated, gross goes down as age goes up. This particular store would have saved $104,690.00 had they not participated on the 60 day old + inventory business. Sure, we’ve all gotten lucky and have “retailed out” of some older units but the facts are clear that those are the exceptions and not the rule. The data shows that we are better off getting out before hitting the 60 day mark.
How do we avoid getting to that 60 day mark? The answer may be easier than you think. You have to systematically and unemotionally manage the mix of inventory so that you are laser focused on only stocking the types of units that turn faster and avoid those that don’t. Certainly, while past performance is not a perfect indicator of future events, your past sales data is the best predictor of what your future sales will look like. We’re not talking about “market data”, we’re talking about YOUR data.
The store figures shown below are from a real client, and obviously, we are protecting their identity. Are you curious what your 60 day + data looks like? Would you like to see if your inventory mix is currently balanced. Would you like to see if you could better balance your inventory just by shifting units from one rooftop from another within your group, thus avoiding auction fees and taking wholesale losses?
When we demo our software to prospective dealerships, we give you the option of seeing the demo with anonymous dealer demo or with your own, actual, live data. The choice is completely up to you. You can schedule a demo by clicking here or by calling us at 954-368-9933.