There are a number of ways that car sellers and traders can boost their used car profits and we’ve compiled a list of them below. Take a look at these ten ways to boost car profits and make more of your busienss.
- Using forecast Tools
Take advantage of technology and use the sophisticated tools available to you which can tell you useful information such as which car models sell better in which areas. By using these third parties, you can make your stock profile more advanced and tailored to the right sort of people that will buy. Extract the information and analyse it. Studies have shown that auto dealers who use such tools are more able to place stock intelligently and can help dealerships with overstocking, slow moving sales and can lessen those vehicles which are less profitable. By analysing the information available and seeing historical trends in car sales and profit patterns, dealers can tailor forecasts accordingly.
- Transporting Vehicles Efficiently
Used car dealers are able to save money through transporting these used cars from one dealership to another or to auction by using and taking advantage of slots available on other transporters. This can save up to 30-40% on each vehicle transport.
- The Sales Process
The old fashioned, elongated qualifying process of selling a used car is long gone. No longer do people see the need to obtain huge amounts of personal information and a part exchange evaluation before even having a test drive, is dated and you will lose potential buyers quickly. All customers want to do is test drive the car and this way they are more likely to be interested. The sales process now is aimed to be completed in a day which was unthinkable even just a few years ago.
- Customer Service
The standard in customer service has skyrocketed over recent years and is a crucial differentiator. Responding quickly to enquires, giving good directions and being friendly are a must in today’s competitive market. It has been suggested by experts that suppliers should do introductory videos of the car and themselves in order to establish a stronger relationship with any potential buyers and increase the chances of a visit and test drive.
Car finance grew by 14% in 2014 and is forecasted to continue this increase with the latest figures from the Finance and Leasing Association funding 1.05 million vehicle sales. There is an extremely high interest in car finance which is something that really has to be considered and taken into account when trying to sell a used car. If you can build trust around this, your sales will increase.
Extended warranty and GAP insurance has become crucial for the sales person’s armor which add on products like GAP coming under scrutiny later this year. Dealers should really be able to offer their customer lots of add-on products to help increase sales and interest such as radio kits and paint protection. Remember, the more used cars you sell, the more trusted you will become.
- Marketing & CRM
Used car dealers need to have an extensive marketing portfolio. The internet has provided an insanely large platform and opportunity for any business or person to market themselves exceptionally well which makes the competition fierce. No matter how good your cars are, how trustworthy you are and what your experience is, if it isn’t available for the world to see, then it’s useless. PPC campaigns, retargeting and email campaigns are good examples of this. By using SEO and social media and tools such as Vibbi, you are guaranteed to see your sales grow.
Much like your marketing, websites are crucial to the success of being a used car dealer. Digital contact is absolutely vital these days as 50-60% of buyers don’t make any contact with the actual seller before coming to visit – just through the website. This will sell for you and it’s important to get your personality and vibe across effectively as well as your professionalism. This is difficult to do yourself which is why companies are set up especially for this purpose such as one particularly good site called: eDealer. They will be able to optimise your used car dealership site to attract customers.
- Online Tools
As well as making your website look good, there are online tools which are available to you which can enhance your website by using instant online vehicle evaluations which is fantastic for converting sales with an average client conversion rate of 22%.
- As previously mentioned, video tours of the used car begins to create levels of trust as well as showing off the car. This creates a message of transparency which makes customers more likely to come and have a physical visit. As a plus, Google also really likes video content and uses as a lever for SEO.