Check what is the used car dealership profitability
The used car market has become an extremely dynamic market where prices have increased significantly and there has been a significant shift to online.
While the sales skills and know-how of the sales team can apply both online and in a showroom or backyard, there is a knowledge gap between how Cazoo & Cinch retailers and traditional franchises and independent dealers do business to the detriment of a traditional dealer .
This knowledge gap is about data and how data can contribute to success in terms of demand, supply and profitability in selling used cars in ways that were not previously possible.
The data requires a lot of guesswork about what to buy and how much to price each vehicle to maximize profit and turnover.
Let’s start with buying. Your data knows how much you earn on each model / variant, how many days it takes to sell, and then what profit you earn on each vehicle per day.
From this, a shopping list can be inferred which models / variants should be at the top to increase used car dealership profitability.
As any retailer in any sector will tell you, purchasing the right kind of merchandise is a priority.
How to improve the profitability of used cars?
Those of you who use AutoTrader and its Accelerator program know the pricing of this vehicle and can value it accordingly.
It’s amazing how dealers with so many spinning plates don’t use this dataset to achieve an optimal price.
Fortunately, AutoTrader has an API that Real World Analytics (RWA) has integrated with to match your DMS inventory with AutoTrader data and shows as an exception which vehicles are not correctly priced according to market valuations, either too low or too high.
Not only can you see it in the headquarters in the form of a dashboard, it is also sent to each branch each day to sales managers to indicate where they need to take action.
For a dealer, these easy and simple steps will add a 5-digit boost to their bottom line.