Independent car dealers are essential in offering diverse and personalized experiences to consumers. However, they face various challenges, including competition with neighboring franchise dealers. In the latest episode of Inside Automotive, Scott Dooley, owner of Carbox in Kenosha, Wisconsin, talks about how independent dealers adapt to today’s marketplace.
Key Takeaways
1. Carbox stands out among independent dealerships because it adheres to five fundamental principles that help the dealership sell more cars than others. Which includes how the dealership purchases vehicles. Instead of purchasing vehicles from auctions, Carbox buys from other independent dealers since it’s incredibly difficult to buy a car in Wisconsin.
2. Despite the challenges, Carbox has had a thriving couple of months in terms of sales. Dooley says that their business increases when the economy tanks, unfortunately. During the colder months, people’s credit scores typically plummet, but Carbox is still selling vehicles, even to those with a low 300 credit score.
3. Independent dealers should prioritize affordability, according to Dooley. By doing so, they can gain a competitive edge over larger franchise dealerships.
4. Independent dealerships face significant challenges when seeking financing for electric vehicles, as banks are hesitant to provide loans to them. Additionally, due to city regulations, independent dealerships struggle with limited space to display and sell their vehicles.
5. Despite these obstacles, Dooley remains optimistic about the future and predicts that dealerships will sell around 80 cars monthly in March, coinciding with tax season.
“The key to helping your store is to be cheap and avoid competing with the bigger franchise dealerships.” – Scott Dooley
