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, as well as vendor analysis. Today, host Jasen Rice, founder of Lotpop, discusses stocking strategies for the current market.
There are pros and cons to being specific with the make, model, and brand of your inventory. Being too specific could burn out the market. There are so many buyers for your market, and you could’ve possibly diluted them out.
Rice says stocking strategies based on historical data could possibly hurt you in this shortage market. A lot of customers are settling for what they can get their hands on. Look for segment buyers and payment buyers in your market. Customers are likely to be more budget loyal than brand loyal. Dealers need to figure out what budget cars move on their lot. Once you get to certain makes and models, specifics of that could change.
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It’s also important to know your market and their needs. Take advantage of ‘one-off’ cars, but realize your potential is limited. Upselling to ‘one-off’ buyers is limited. Rice says dealers need to be looking long term, not just short term. Longevity at your dealership is that customer three years down the road, coming back. Don’t just go buy rental rockets, like Rogues or Altimas. Price to your local market and buyers.
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