On the latest edition of Straight to the Point, host Frank J. Lopes is joined by Paul Machin, Head of Strategic Accounts at Black Book. Lopes gets straight to the point with Machin by asking him, should auto dealers still be paying all the money for trade-ins or should they pull back and slow down?
Machin says car dealers shouldn’t slow down and, in fact, they should keep up the pressure on trade-ins. Machin says data has suggested that the market is going to be hot for a few more months. In regards to the chip shortage, some analysts have said there is going to be up to five million fewer vehicles being manufactured throughout the year.
Machin says car dealers need effective strategies. Dealers should appraise 100% of every service-provided vehicle that comes into your shop. Car dealers then receive a complete service writeup and are able to make a cash offer to every customer for their trade-ins. Secondly, car dealers need to create a way for buyers to access some sort of car portal. Whether a customer decides to buy a car from you, be honest and fair. Developing alternative sourcing channels is where it’s at. Lastly, connect with local lenders or local credit unions and ask them for their forbearance list and possible accommodations list.
Machin continues to say, we are the ‘bring it to me economy’. This is where great technology partners are important. When adding service providers, they are able to sell vehicles part-time to those same consumers that they are buying service vehicles from. It’s amazing when you get outside the box and become creative.
Machin concludes the conversation by sharing what car dealers can do to build trust between themselves and the customers before even meeting face to face. Machin says you must reduce the margin spread. Trust the right data and give an honest offer. Educate your leadership team and sales because it’s a total game-changer.
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