The ability to identify vehicles that perform well at your sister stores – in addition to knowing what performs well at your store – allows you to reap the numerous benefits of group trading. Group trading can result in less time spent at the auction and increases the number of core vehicles on your lot and all lots within your group – leading to increased sales and gross, tighter inventory across lots and less wholesale and aging problems.
Having a plan of action for each vehicle from day one allows you to cut ties sooner on vehicles that traditionally haven’t performed well for you. Having data that can tell you where you’re apt to make the most money is very powerful. It gives you the ability to buy the right vehicles – at the right price – and at the right time. So, how do you accomplish all of this?
It’s a combination of process improvements paired with the utilization of technology that is available today to help dealers make knowledge-backed decisions. The process changes involved require streamlining of the appraisal and vehicle purchase and disposal processes. The technology part of this equation is equally important. Systems are available today that can take your store’s sales history (and your group’s), combine it with local and regional market data and literally provide “buy/sell” recommendations. Extensive reporting such as water and aging reports can assist you in developing a plan of action that ultimately optimizes your inventory – reducing turn times and wholesale losses, while positively impacting your bottom line!
Vol 3, Issue 6