Finding and Buying Good Used Cars in the Market Today
How do you locate the proper inventory that attracts those shoppers to you when people are prepared to go an increasing distance outside of their immediate neighborhood to find the ideal car? Your dealership’s ability to purchase high-quality pre-owned vehicles will determine whether you stay ahead of the competition or send your clients directly to them in today’s market.
We are aware that building a respectable inventory at the moment can be challenging, particularly as demand continues to outpace supply. The good news is that we’re here to give you some insight into possible hiding places for those high-quality cars (and how to find them).
Finding the missing piece
Dealerships frequently buy cars from a number of sources, including trade-ins, auctions, rental businesses, and previously leased cars. However, a source that many overlook frequently is their own customer database.
Let’s use an illustration to demonstrate what we mean:
Gerry enters your service lane to perform some standard maintenance. In addition to being in excellent shape, Gerry’s customer record in your DMS reveals that he bought his car brand-new from you roughly three years ago. (So far, that sounds wonderful, right?)
You then notice that Gerry is paying $50 more each month than he would if he purchased a new vehicle when you look at his monthly payment. Gerry’s buying history, the state of his automobile, and his monthly payment are all taken into account, so your sales staff has all the data they need to convince Gerry to trade in his current car for a more modern one.
In other words, when it comes to sourcing high-quality products, your client database is a hidden gold mine.
When Something Good Becomes Even Better
Even though your customer database is valuable on its own, when your dealership uses predictive analytics, it is even more effective for locating high-quality used car inventory.
What precisely is predictive analytics? Predictive analytics, in its simplest form, is the use of historical data to anticipate the likely course of an event. For your dealership, this entails identifying the clients who have a high likelihood of buying a new car (based on the clients’ prior behaviors, present circumstances, and decisions made by comparable individuals). With the help of this information, you may finally learn more about the campaigns, offer types, and potential upsells that they’re most likely to respond to. Most significantly, it aids in determining the demands of your customers.
Let’s go over another example:
Just before she left for college, Charlotte bought a car from your dealership. She has since visited your service lane a few times while on her breaks from school for standard maintenance.
Charlotte’s car is currently around 5 years old and is still in excellent condition, but predictive analytics show that Charlotte has a high possibility of buying something else (with the appropriate offer). Charlotte’s little automobile is wonderful for driving through congested campus areas, but her demands have changed significantly since then. Now that she has graduated, she commutes a significant distance to work by highway. Charlotte might be interested in something a little bigger with more comfort amenities, given the extended time she spends in her car.
Charlotte can easily be brought in to look at your present car choices thanks to this kind of foundation. You could even show her how, (for a comparable monthly cost) she could get into a nicer, newer automobile right now—one that better suits her present lifestyle—by sending her a personalized mailer encouraging her to get her car assessed.
Remember that predictive analytics can never promise that a consumer will be in the market to buy; they can only show that, based on prior data, they have a high possibility of doing so. Having said that, it’s a helpful tool for getting more service work as well. If a customer owns a specific vehicle, your dealership can send reminders for routine maintenance at the suggested intervals (nice, right?).
Using Your Data Most Effectively
Your dealership can make use of its database to build a network that brings desirable inventory right to you, in addition to using equity mining techniques and predictive analytics to identify the clients who are most likely to trade in for a newer vehicle.
Why not incorporate your dealership staff or even your customers into the network of auctions and rental businesses that you frequently use to obtain inventory?
Don’t worry; we have an illustration for this as well:
Patty frequently uses the service lane at your dealership. (She even subscribes to your dealership’s social media pages to take advantage of sporadic service specials.) Although Patty herself has no interest in a new car, she is aware that her friend Chad has been looking for one over the past few weeks.
When a consumer refers your dealership to someone they know, both parties receive an incentive (a discounted service, a gift card, or maybe simply some pretty nice gear). Let’s imagine your dealership decides to try adding a referral program.
Patty immediately thinks of Chad when your dealership posts about the new referral program. She forwards him the post, and as a result, Chad searches through the SUV listings at your dealership and finds one he loves. He cheerfully drives away from your dealership with a new car and a coupon for a free oil change after taking it for a test drive and giving Patty a shout-out.
It’s a win-win-win situation for your dealership because it not only made a successful sale but also increased Patty’s devotion to your service department and made a significant addition to your inventory.
Obtaining a respectable-sized used car inventory can seem like a difficult undertaking, but there are resources available to make it a little simpler. Predictive analytics, making use of your client database, and providing tailored incentives are all excellent ways to help your dealership uncover the secrets that will convince both current and potential customers to choose you over your rivals.
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