Most auto dealers fixate on moving their new inventory but with available units dwindling that strategy is no longer working. Now, it’s more important than ever to focus on moving used-car inventory in the smartest, most efficient way possible.
With the inventory shortage, some dealers have become overconfident believing buyers will seek them out and buy any unit they have in stock. Even though demand is high, remember:
- Data should be at the forefront of your used vehicle sales strategy to ensure that you’re buying the right units and turning them quickly.
- There is an opportunity to make shoppers think of you when they look to sell or trade their vehicle.
- Use your marketing budget efficiently by supporting your CPO or used-car strategy.
Don’t get stuck with a dud
Dealers are grossing more profit than ever before which feels great but can also provide a false sense of confidence. The uptick in profit is a result of the market but that does not mean that every pre-owned unit available is a gold mine. When pivoting focus to certified pre-owned or used cars, it pays to be proactive rather than reactive.
Use important data points like sales, turn rates and pricing to smartly acquire the units in highest demand when shopping auctions. And with that same information, you can quickly know which customer vehicles to pass up on and what deals you shouldn’t let go. If you play it smart, you can outturn the market but if you wait to see what comes to you, you might end up with a dud.
Make sure you’re a household name
When inventory is short, and your OEM isn’t providing new units you must rely on customer trade-ins to help stock your lot. While you can use your CRM data to reach out to old customers to make a deal, that list will run out fast. To make the largest impact, you should get your name and your offer out to your whole market.
Broad reach products like OTT/CTV are a great place to lean into when you want to get a cost-efficient message out to a lot of people. Plus, with smart targeting you can get your ads in front of an active shopper audience looking to buy and trade soon.
Get the biggest bang for your buck
When profit margins are high, it can be tempting to pull back on marketing efforts and ride the wave of success but with the pivot from new to used, it’s time to double down. Our social data shows that the Cost Per VDP for used units is less than half that of new units so with a solid advertising budget and intelligent ad platforms, you can move units even faster than you are right now. Similarly, leaning into inventory-based products will allow you to be agile and update your marketing efforts 24/7 which means no wasted ad spend on units that already sold.
Curious how you can use these techniques at your dealership? Schedule a free consultation.