![]() ![]() ![]() Buy it right or understand the impact on potential grosses, salability, and aging of your used vehicle dollar investment in other words, your true return on investment of your dollars, Mr./Ms. A used-vehicle trade acquisition is an investment decision. Why in the world would you destroy your acquisition disciplines, bumping used trade-in inventory values and not reduce new-car gross to its true transaction value?)Ī new-car deal is a new-car deal, albeit an OEM incentivized transaction. If not, what have you just done to the integrity of your pricing model and your used unit gross potential? (Most OEM incentive money is being paid on new-car sales. Question: Have you ever put more money into a trade to make a new car deal? If so, of course you reduced the new car gross - right? “If I price to market, my grosses are too low.” What makes you think you are smarter than the market which dictates the cost and sales price of inventory? What is your acquisition plan? What do you buy each week to inventory? “I cannot find the ‘right cars’ and when I do, they are too expensive.”Ĭome on! The vehicles are out there! You might have to work every day to source them. Do you understand that if you turn your inventory more efficiently, your volume will increase? Our Benchmark metrics validate that a 45-day turn is very common, regardless of franchise. Should your dealer give you more dollars to invest unwisely? Just a hint: great operators do believe a 30-day (or faster) turn is attainable. If you have an aging issue right now - why? You might, but first, do you understand and practice an aggressive “turn” mentality? If not, you are five years behind in your skill set. “I need more inventory to sell more cars.” My responses should help you combat these misunderstandings that are prevalent in our industry today, and they’ll also help you have the conversation that will turn this thinking around. What follows are some common reasons we hear during our dealership consulting engagements. ![]()
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