Used Car Profit Occurs When Buying, Not Selling

From a logical sense you would think that profit is made when selling a used car, but reality is that profit occurs when buying them. This is because profit isn't about each individual vehicle sale, but about your strategy and process as a whole. How you buy used vehicles, and why, is more important that how you sell them.

I published a post recently called Ideas for Enhancing Your Used Vehicle Acquisition Strategy that references how one Kentucky dealer has built one of the nation's largest used car profit centers by deploying a strategy that involves buying used cars from private seller. In fact, according to Auto News, their intake of used vehicles from private sellers has increased by more than 25% over the last two years.

Innovative dealers today understand that not all vehicles acquired from private sellers can be resold on their lots, which means that some portion end up going to wholesale. But with the right tools and information, your used car acquisition strategy can be a better profit center by not relying solely on vehicle trades and auctions.

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Comment by steven chessin on December 28, 2015 at 7:52pm

My favorite dealer bought hi-end off-lease returns with minor damage far below wholesale - reconditioned and sold them well below retail. I never could understand why the original dealer passed on such nice cars but that's their business.

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