The acquisition of vehicles may have become a boon to your existence in the past year. And while it’s not impossible to source inventory for your lot, it sure isn’t easy. For most dealerships, now is the time to get creative in how you acquire cars. From working your service lane to going directly to a consumer’s home, the automotive retail industry has become fraught with new and inventive ways to stay afloat during difficult times. These fresh ideas are fueling how dealerships operate and interact on a daily basis. And while communication and customer service are still at the forefront of importance, you need to think strategically at the time of acquisition to maximize vehicle profitability.
To start, develop a roadmap. You need to best understand which vehicles will perform best on your lot. And to do that, you require the cleanest data streams available. You see, data is your friend when it comes to maximizing profitability. Having as much intel as possible allows you to plan properly at the time of acquisition. It empowers you to know more about each vehicle, thereby helping you to deliver a superior customer experience. But you can’t just do this without preparation. Building a roadmap allows you to best ready your team for success while maximizing vehicle profitability.
Next, put solutions into play that help you acquire with confidence. When you have a plan from the beginning, you are able to take control of the situation. For trade-ins, you need to appraise vehicles in a way that is strategic for you and the owner. This is no time to race to the bottom. Instead, leverage solutions that help put a true value to the customer’s vehicle. Utilize a specific point plan that evaluates the vehicle honestly, and delivers transparency for the customer. You will raise closing costs, maximize earnings, and increase customer satisfaction. Don’t hold off on this part of the process. Utilize solutions that work for you, not against you.
Finally, make the process collaborative. At the start, get your whole team on the same page and train them to be superstars. Having a plan at the time of acquisition means working together to ensure all aspects of the vehicle are accounted for. Whether you are walking around the car for an inspection or justifying reconditioning to a customer, be sure to utilize all of the different weapons at your disposal. Work in harmony between departments and minimize roadblocks and redundancies. This will speed up the process. Time is money, afterall. So be sure to operate in unison and enact a plan that helps you maximize profitability.
As technology advances and solutions become more sophisticated, it is critical that you have a plan of attack during every phase of the process. You can no longer operate like the wild west. You need to have tools in place that help you develop a roadmap, acquire inventory with confidence, and work in a collaborative environment. Having a plan is your key to success in our current, fluctuating market. Getting inventory is the first step. The second step is holding gross without racing to the bottom. Maximize profits by being prepared.
MAX Digital is here to assist you in being proactive with your planning. Having solutions ranging from inventory management, sales enablement, and digital retailing, MAX Digital is capable of helping you establish a path to maximize profitability. Our consultative approach helps you identify areas where you can improve, and assists you by deploying solutions that make your dealership run better. Want to learn more? Schedule your free consultation today.