When acquiring used vehicles, having a defined strategy for how you intend to dispose of each vehicle you buy can help reduce confusion, increase efficiency, and also make your pricing strategy more effective. Combined, these calculate efforts contribute to your bottom line, ultimately affecting your profits.
At the time of purchase (acquisition), knowing the market days supply and desirability of each vehicle will inform you as to whether the unit will be a retail sale or wholesale. Prepare with this information assists in developing your pricing strategy – will it be a vehicle you hold for gross initially and then discount slowly or will you only let it go days before discounting it more rapidly?
In this video, you get a preview of our conversation about the development of strategies for each and every pre-owned unit acquired at the time of the purchase. We discuss which disposition channels will yield the optimum return (fastest turn with the highest profit potential), and how to determine if you are exercising all of your disposition channels effectively?
The conversation originally took place in January 2017 with David Long, Director of the Del Grande Dealer Group Buy Center, Aaron Gomez, Acquisition Manager, and Tom Gregg, Founder of Vehicle Acquisition Network.
For access to the complete conversation, follow this link.
Author: Ryan Gerardi
Ryan Gerardi LinkedIn is Chief Editor of AutoConverse> Magazine and Executive Producer and Host of the AutoConverse Podcast and Live Weekly Broadcast. He is also Founder & CEO of AutoConversion with nearly 20 years experience in the automotive industry. Ryan concentrates his efforts today on exploring people, ideas, and technologies related to how we get around and how we are connected.