Proper pricing sells used cars

Our jump from 30 Used per month to 130 was no accident. A year ago we priced by gut or by rule. "Add $3000 to our inventory price" is what many dealers continue to subscribe to. We found religion with Dale Pollack and Vauto. Of course there are other tools out there. I like what Dale Pollack has to say and thus went with his product. (no, they didn't pay me to say this). Our experience selling used cars is that we could spend any amount of money in the local "Auto Shopper", local classifieds, Autotrader, Cars.com...anywhere, any amount - and not move the needle. Price a car right in just one venue and customers FIND YOU. Using an etool to monitor the market DAILY is imperative.

Weekly price changes should become policy. While used cars were once one of a kind vehicles, they are now commodities much like corn or beans. If you were investing in commodities on the mercantile exchange you would certainly pay attention to your holdings. This is equally true with your used cars! Seasonal changes, interest rate changes, availability, change in the model year, incentives all play with prices daily.

If you are now flying by the seat of your pants, stop. Get yourself a pricing tool, learn how to use it and make it part of the fabric of your business. Those who don't employ this technology are bound to loose business to those of us who watch our inventory religiously and act accordingly.

8 members like this

Next Post >

Comment

You need to be a member of DealerELITE.net to add comments!

Join DealerELITE.net

Comment by Ryan Mills on November 12, 2011 at 3:11pm: VAuto Is a great tool. We have been utilizing it in our dealerships with great success.

Comment by John Fuhrman on November 10, 2011 at 6:25am: Adam,

Congratulations. As always, using the right tools or engaging the right people for your particular needs and goals is the ONLY way to succeed in today's market.

John

Comment by Dale Pollak on November 9, 2011 at 7:20pm: Adam,

Wow! Congratulations on your success.

Comment by Ed Brooks on November 9, 2011 at 5:14pm: There are few things as gratifying for a vendor as reading a story like this from someone who put their faith in your product. Congratulations on the success Adam!

Comment by Stan Sher on November 9, 2011 at 4:53pm: Being that I used to work for one of your competitors a few years back and seeing the great enhancements that you made I am more then impressed. You continue to be on the path to being one of the top dealers in the area. Keep up the great work.

Comment by Marsh Buice on November 8, 2011 at 8:43pm: Adam we began using vAuto 2 weeks ago...within days, the phones were ringing, the customers found us..the market is too volitale to set it and forget it. Great post.

Comment by Emilio LoCilento on November 8, 2011 at 5:59pm: This is the ONLY way to conduct business in todays marketplace.

Comment by Jim Kristoff on November 7, 2011 at 12:50pm: Absolutely agree!!!!

Good blog Adam!!