How to Increase Your Dealership’s Used Car Sales When New Car Supply is Low

Automakers continue to face manufacturing challenges as supply chain issues persist. In light of this lack of new vehicle inventory, many car dealerships are turning their attention to their used car departments. Joining Jim Fitzpatrick on today’s edition of Inside Automotive is Sean Gardner, who discusses the best strategies for selling used cars. Sean is a sales instructor and trainer with the Joe Verde Groupone of the leading training organizations for automotive dealers, managers and salespeople, for over 35 years.

At a recent workshop in Buffalo, New York, Gardner says many car dealerships reported that they don’t have enough cars on their lots to sell right now. A dealer in attendance who owns a Toyota store said he had four or five new vehicles on hand and about 50 used vehicles on his lot. This store is one of 11 in the entire group and collectively the stores had approximately 600 used vehicles. The group also allows its sellers to cross-sell, which is crucial, Gardner says. Many sellers think cross-selling is too complicated or the process too uncomfortable. However, this group of dealers has individuals who cross-sell 40-50 cars per month.

“If we don’t have the new vehicles on the lot ready to sell, we need to do a better job of giving customers options and choices to buy the used cars we have on the lots right now. “, explains Gardner.

Current market conditions are forcing car dealerships to be more creative in managing their inventory. But some customers won’t wait weeks or months for their vehicle. That’s why it’s essential that salespeople present customers with pre-owned options. Gardner says new car-focused salespeople tend to overlook the benefits of a customer choosing a used vehicle. If a customer goes the used route, they avoid the level of depreciation new car owners face as soon as they leave the lot. Used customers can also often find vehicles with more features at better prices than they originally had in mind.

High prices for new and used cars can frustrate some customers, and salespeople may not know how to handle the situation. Gardner says salespeople need to present these numbers to customers in a professional manner and explain them in a way that makes sense to the customer. Sellers are also frustrated by this process, but you don’t have to be an economist to explain the inflationary market. Joe Verde Group teaches sellers to set price aside and focus on creating exceptional shopping experiences.

“It’s not about being frustrated with the market we find ourselves in. It’s more about sharpening our skills so we can help more customers, have more fun, make the customer experience phenomenal, but also sell more cars, hold more raw product and make more money,” says Gardner.

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