Today’s used car market is tighter than ever. With limited inventory and high demand, prices remain high and margin is down. While we can’t change basic market forces, we can work smarter to find solutions that keep our costs down and maximize our profits.
One of the easiest places to cut overhead in your used car department is by reducing auction fees. With auctions charging up to $500 per vehicle, some auction vehicles offer very little profit margin by the time they reach your lot. This is why so many dealers now have programs designed to get customers to sell their car even if they are not buying from you.
Today there are new more efficient tools to help you get the inventory you need without the auction overhead.
Fortunately, digital tools continue to offer alternatives to building your inventory through auctions. One of those tools is Road Dealer, powered by CarSoup.com. Road Dealer is a private online network that allows dealers to buy, sell and trade inventory without auction fees or commissions! The Road Dealer network includes hundreds of dealers in the Midwest and tens of thousands of vehicles updated daily.
Road Dealer lets you search for exactly the type of vehicle you need to fill your inventory. The simple online portal searches thousands of local and regional vehicles and finds the vehicles you need in seconds.
Purchasing vehicles is done through a safe online process and you can purchase an unlimited number of vehicles all without additional sales fees or commissions. The best part is, most of these vehicles are front line ready! Compare that to the auction process, where purchasing 10 vehicles per month could cost you $2500-$5000 just in auction fees, to say nothing of transportation and reconditioning.
In addition to buying vehicles, you can sell your aged inventory to over 200 dealers through the Road Dealer network. Loading your vehicles into the online system is easy and you never owe any commissions on the selling price. Road Dealer is a great way to manage your inventory turn and increase your sales velocity.