Abraham's Auto Blog

Strategies to Guarantee Smooth Entry into the Used Car Market

According to recent research, the number of people driving new cars in 2017 hit the 7 million mark while those driving used vehicles stood at 9.2 million. The study shows that demand for used cars is still high; therefore, if you are planning to open a used car sales dealership, then your timing couldn't be better. However, to penetrate the competitive and congested market, you need the right strategies. This article offers tips on how you can effectively ensure that your business attends to customer demands.

Keep Inventory Fresh -- Although you will be selling used cars, it does not give you the leeway to keep unnecessary inventory. It is common to go to a used car dealership and find vehicles that have sat outside for so long that their paintwork is fading. To attract a client base, therefore, you need to keep your inventory as fresh as possible. The best way to achieve that is minimal stock vehicles as you test the market. The reason is that getting clients fast enough to clear or reduce your extensive inventory will be challenging. You can opt to specialise with specific brands first as you get a feel for the market. Ideally, each unit should not stay longer than 60 days in a lot.

Retail Readiness -- When you get your inventory of used cars, some will need reconditioning before being put up for sale. Since some reconditioning projects take a bit of time, the chances of delays will be much higher, and your potential clients will not like it. With such delays, marketing costs will go up as the business tries to keep customer interests alive. To ensure that your inventory is retail-ready, you need to keep the turnaround process of reconditioning as short as possible. Delays can be avoided by having the reconditioning done in your shop or at a nearby garage.

Regular Review of Prices -- When you set a price on a used car, it does not mean that you cannot change it. Different factors affect the market price of a used car; hence, if you are not careful, a vehicle might sit in your lot for months. For instance, by regularly monitoring the number of views a particular car is getting, you can determine whether the vehicle is in demand or not. If a vehicle attracts many views, then it indicates high demand, so you should consider revising the price upwards. The converse is true.

For more information on the used car market, contact automotive companies like Blue Ribbon Motors near you.