Even at a used car dealership, there is such a thing as a vehicle that’s just too old. Aging inventory—cars or trucks that languish on the lot past the 60-day marker—take up space, eat into profit margins, and only grow harder and harder to sell. Here are some tips for independent auto dealers looking to address their aging inventory issues.
Always Collect Data
First and foremost, remember that your inventory provides you with some important data points. Which cars sell quickly? Which ones seem to sit on the lot for 45 days, 60 days, or beyond?
Always keep tabs on current sales trends, and be aware of which cars do and do not work well with your buyer demographics. If there’s a car that doesn’t seem to be capturing anyone’s eye, well, that tells you something for the next time you acquire inventory.
Think About Craigslist
Far too many dealers overlook the selling power of Craigslist. Not only is it a powerful driver of website traffic, but Craigslist customers tend to convert fairly quickly. They are ready to buy, and often, what they really want is a great deal—something your older car or truck can likely afford them. If it’s not selling in the showroom, put it on the Web! Use Craigslist to your full advantage.
Keep Them Looking Nice
It goes without saying that an old car won’t sell if you confine it to a back corner and allow it to collect dust and cobwebs. Here’s a good policy: Ensure that the vehicles in your lot are washed, polished, and detailed every 15 days or so. Even a car that’s been in your inventory for a while needs to be kept looking its best.
Rotate Your Promotions
Along the same lines: Consider giving your older inventory a chance to shine—even alongside your newer cars. Yes, you obviously want to put the flashier cars on prominent display, but leave a little room in your showroom or along the side of the road to rotate in some older vehicles.
Eventually, You’ve Got to Discount Them
You may be reluctant to discount your aging inventory, knowing that it will erode your margins. Then again, when you buy inventory with floor plan financing, every day a car stays on your lot it’s losing you money—and eventually, it’s better to just cut your losses and move on.
How Will You Handle Aging Inventory?
Every independent auto dealership has to contend with aging inventory. The question is, how will you market and promote your cars—even older ones—to turn them into profits?
Get My Auto can help you brainstorm some solutions. Reach out to our automotive marketing experts today, and ask about our services in Facebook Ads, Craigslist, and beyond. Contact Get My Auto right now!