How to Increase Used Car Sales
- 1). List lower prices. While it may seem obvious that lower prices will draw in more buyers, there are other benefits to advertising this information. If you advertise the car for a lower price but your dealership offers financing, you may be able to get the buyer to take a service contract or extended warranty, which could increase profit by more than the added discount offered on the vehicle.
- 2). Sell via online auctions. Online auction house eBay Motors is a popular spot to sell used vehicles, with dealerships and private outfits alike using the service. When selling online, be sure to consider your return policy and shipping arrangements, as you are sure to get bids from buyers located far away from your principal place of business.
- 3). Take more pictures. If your cars are featured online through Cars.com, AutoTrader.com or similar websites, get extra pictures of each vehicle in your inventory. While four or five pictures used to suffice, some dealerships take dozens of pictures for each vehicle. This provides peace of mind for buyers, and they may be willing to pay a price premium for the car if it stands out from others in your pictures.
- 4). Offer a guaranteed trade allowance. Some used car shoppers have an old car in their backyard, or they may be seeking an exceptional deal. If a dealership offers a guaranteed trade allowance of $2,000, it is likely many of the traded-in vehicles will have actual values of much less than that. But the dealership can inflate the prices of those vehicles on their lot to offset the losses.
- 5). Have a special event. Advertising a "liquidation sale" or "repo car sale" can draw buyers to your lot. Just be sure to have enough staff on hand to handle the increased customer traffic. Although not all buyers will make a purchase during the event, you can increase the size of your prospect lists.
- 6). Send a direct-mail piece to your current customers. It may be expensive, but it will increase the front-of-mind awareness that consumers have of your dealership. A direct-mail piece can focus on low monthly payments, or the size of your inventory if you have a large number of cars and trucks in stock.