Welcome to this week’s episode of Used Cars Weekly, the original CBT News show dedicated to bringing car dealers best practices and tips for the used car department, in-depth dealer interviews, hands-on dealership strategies, and vendor analysis.
There has been much discussion in the news lately about inflation and the possibility of a recession. Some dealerships are realizing that what worked in the past might not work in the future. Today, host Jasen Rice, founder of Lotpop, shares three areas to focus on when things slow down at the dealership.
- Used inventory management — Don’t leave any gaps. Ensure that you consistently do physical and digital lot walks for your used inventory.
- Time management — Maximize your time, especially if you have to cut expenses. Streamline your advertising, car listings, and lead management.
- Lead management — Don’t make price changes for the sake of price changes. Often, dealers will drop prices in order to drive traffic. But before you do that, Rice recommends analyzing the specific segments and price points that are performing well. Consider age, mileage, and equipment to make better pricing decisions. The majority of the time, when a vehicle ages on the lot, it’s not because of price; it’s due to poor lead management. Don’t let 7-13 day-old leads fall through the cracks, especially for cars prices high in the market. In this economy, consumers are segment-loyal and price/budget loyal.
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