{"id":2207,"date":"2017-01-30T09:00:40","date_gmt":"2017-01-30T14:00:40","guid":{"rendered":"https:\/\/www.autoraptor.com\/?p=2207"},"modified":"2017-01-30T09:00:40","modified_gmt":"2017-01-30T14:00:40","slug":"sell-used-car-inventory-60-days","status":"publish","type":"post","link":"https:\/\/www.autoraptor.com\/blog\/sell-used-car-inventory-60-days\/","title":{"rendered":"How to Sell Used Car Inventory in 60 Days"},"content":{"rendered":"

\"used<\/h2>\n

Those hard-to-sell vehicles in your used car inventory aren\u2019t just taking up space\u2014they\u2019re cutting into your profits<\/h2>\n

It\u2019s a beautiful morning as you open your auto dealership for the day. You look across the lot, and the sun is shining down on your immaculate used car inventory<\/a>. You love each and every vehicle, but don\u2019t spend time getting attached because you know they\u2019ll sell within 30 days, and hopefully even before that. You\u2019re proud of your reputation for keeping a fresh inventory of in-demand vehicles.<\/p>\n

If the above scenario seems ideal, but it feels like nothing more than a pipe dream in your current situation, don\u2019t worry\u2014it\u2019s within your reach.<\/p>\n

Keeping your used car inventory moving is essential to running a profitable dealership. You\u2019re not just selling a car to make money; you’re selling it to avoid losing money as well. According to the National Automobile Dealers Association (NADA), you lose $28 every day that a used car sits on your lot. That means every time a new car hits your lot, the clock starts ticking.<\/p>\n

Some less obvious benefits of selling your inventory? You\u2019re likely to enjoy improved employee morale, as they feel a greater sense of urgency and purpose in selling\u2014and reap the monetary benefits when the commission comes in. It can also improve your reputation within the community because of your fresh inventory and popular vehicles.<\/p>\n

4 Tips for making a profit on your used car inventory<\/h3>\n

When it comes to selling your used car inventory, time is of the essence. If you\u2019re not getting a car off your lot within 60 days \u2014 which should be the absolute maximum amount of time it sits there \u2014 you\u2019re doing something wrong. Try these methods for improving turnaround time:<\/p>\n

1. Streamline the reconditioning process.\"used<\/strong><\/p>\n

Once you\u2019ve acquired a new vehicle, how long does it take to get it reconditioned and out on the lot? Five days? A week? That\u2019s too long. Remember, you\u2019re losing about $28 a day while your dealership works on that car, so aim to get it ready for retail in 48 hours or less.<\/p>\n

Take professional, flattering pictures and have them up on the website within 72 hours, max. Post them on social media to take advantage of the sharing power. Have a dedicated reconditioning team on staff rather than feeding the new vehicles through the service department\u2019s regular schedule of paying customers, and train that team to work efficiently within the time constraints.<\/p>\n

2. Perfect each vehicle before it goes on the lot.<\/strong><\/p>\n

Even as you work hard to get vehicles reconditioned faster, don\u2019t put anything up for sale that isn\u2019t ready. Take care of every single detail before any customer takes a test drive, because one mistake could cost you a sale. Get rid of any weird odors, take care of cosmetic issues and scratches, make sure the interior is spotless, and that the vehicle drives well.<\/p>\n

Certain cars may be less desirable than others, but with a little makeup on, any car can sell. Every salesperson should drive about 10 miles in the vehicle to get a feel for how it handles so they can speak with authority during the sales process and feel confident the car is ready to go up for sale.<\/p>\n

3. Keep a top ten list.\"used<\/strong><\/p>\n

Create a regularly updated list of the top ten oldest cars in your used car inventory. Post it in the break room, and e-mail it to your salespeople every week. Establish an ongoing incentive<\/a> connected to these top ten (it\u2019ll be different from your usual spiff program <\/a>since spiffs aren\u2019t supposed to be long term). For example, selling the three oldest vehicles will result in a 50% commission. This prevents your oldest inventory from disappearing into the background and failing to remain top-of-mind for your sales team.<\/p>\n

4. Get your entire team on board.<\/strong><\/p>\n

It\u2019s easy to shout \u201cSell! Sell! Sell!\u201d at your team during sales meetings<\/a>. After all, they\u2019re getting paid on commission\u2014isn\u2019t that enough to push them? Unfortunately, no. You need to explain to them why it\u2019s so important to sell as quickly as possible, how it negatively affects the business when they don\u2019t, and how it positively affects the business when they do. When everyone is on the same page, you can\u2019t go wrong.<\/p>\n

What to do once you see a turnaround begin with your used car inventory\"used<\/h3>\n

Let\u2019s say you follow the advice above and you see great results, but now you don\u2019t know how to keep up with demand, and your lot is looking a little sparse before you go to the next auction. It\u2019s time to get organized and set strict aging guidelines for your managers. They should aim to follow this general industry guidance for inventory age distribution:<\/p>\n

    \n
  • Zero to 15 days: 50% of inventory<\/li>\n
  • 16 to 30 days: 25% of inventory<\/li>\n
  • 31 to 45 days: 15% of inventory<\/li>\n
  • 46 to 60 days: 10% of inventory<\/li>\n<\/ul>\n

    Once a car hits 60 days on the lot, it\u2019s time for it to go\u2014and be firm about this rule. This ensures you keep things moving and you never run out of desirable vehicles to sell.<\/p>\n

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    Schedule an AutoRaptor Demo Now!<\/h3>\n<\/div>\n