In this market, we need to change our approach to sourcing inventory. Dealers are turning to Self-sourcing vehicles for their lots rather than relying solely on auctions, which can provide several significant advantages:
Higher Profit Margins
Unique Inventory
Control Over Quality
Building Relationships
Flexibility in Pricing and Negotiation
Reduced Competition
Control Over Inventory Turnover
Many dealerships say we are trying to make street purchases, but we must commit. To fully change the culture in your store and bring your team together, we need to set goals that involve key steps and considerations. Every department and employee can be involved, contribute, and get compensated. Clarify the goal of each department in acquiring vehicles and the process to follow by the department. Make sure this is communicated to all employees in the department. Assign roles and responsibilities in each department's process and provide resources, support, and guidance.
Website
Is your website performing well on sourcing vehicles? When promoting a "We Buy Cars" service on a dealership's website, it's crucial to make the process clear, convenient, and trustworthy for potential sellers. Here's a structured approach:
Clear Call-to-Action
User-Friendly Form
Instant Offer or Estimate
Personalized Contact
Educational Content
Follow-Up
Social Media
When using Facebook or other social media to buy vehicles for a dealership, engaging with potential sellers in a friendly, professional, and trustworthy manner is essential. Here's a strategic approach:
Create a Dedicated Page or Group
Clear Messaging
Visual Content
Educational Posts
Engagement with Comments and Messages
Promote Trust
Paid Advertising
Regular Updates
Community Engagement
Service Lane
Buying vehicles in the service lane typically refers to purchasing cars from customers who bring them in for service at a dealership. This approach can be advantageous as these customers may be looking to upgrade or sell their current vehicle while it's being serviced. Here's a good follow-up when exploring this opportunity:
Just ask all your customers a simple question: "Would you like to know what your car is worth?"
Make this a low-pressure situation, get them a value, and let them know we would be interested in purchasing their vehicle. Plant the seed.
Service BDC
When offering a free vehicle appraisal in conjunction with booking a service appointment, make this an informative hassle-free service.
"Hello [Customer's Name],
Thank you for booking your service appointment with us. As part of our service, we'd like to offer you a complimentary appraisal on your vehicle while it's in for service. Whether you're considering investing in your vehicle, selling it, or trading it in, this appraisal will provide valuable insights.
Please let us know if you'd like to take advantage of this offer or have any questions. We look forward to assisting you with your vehicle service and appraisal."
This message highlights the benefit of the free appraisal, respects the customer's time and decisions, and invites them to consider their options conveniently while their vehicle is being serviced. It's professional and courteous and encourages engagement without pressure. We must offer this service to everyone and follow up on the offers.
Missed Trades
When you don't win the used car appraisal on trade, it's essential to acknowledge the outcome positively and gracefully. Here are a few suggestions for a good follow-up:
Express Gratitude: "Thank you for the opportunity to present our offer. We appreciate your consideration."
Stay Open to Future Opportunities: "While we weren't successful this time, we remain interested in any future opportunities to work together."
Seek Feedback (if appropriate): "If you have any feedback on our offer or if there's anything we could improve upon, we'd love to hear it."
Maintain Professionalism: "Wishing you the best with the car sale. Should your circumstances change or if there's anything else we can assist you with, please don't hesitate to reach out."
Leave the Door Open: "Feel free to keep our contact information handy. We'd be happy to help if the need arises."
These responses show professionalism and leave a positive impression, potentially opening doors for future opportunities.
Sales and Sales BDC
Our biggest opportunity is with our sales and BDC staff facing customers and leads. Looking at the leads in LotWalk, we have noticed a significant percentage of the leads come in without a trade. As a department, we need to make sure we list those trades in our CRM. I would even ask how many vehicles the customer has in their driveway and record. We need to know this information early in the buying cycle to have an opportunity at this trade. By the time many customers hit our lot, they had decided what they were doing with their trade. Address this early on.
We need to make the process of self-sourcing vehicles part of every department's daily job. We can no longer rely on the auction buys of a select few. We will be sourcing vehicles we cannot find or afford at the auction. Make sure the compensation makes this life-changing for many employees. Set your processes, execute your plan, and review your progress. Celebrate those purchases in a store meeting or department meeting. Focus on the successes.
For more information or a free analysis using your data, visit www.lotwalk.com.
-Pam Humphrey
Performance Engineer
Lotpop Inc.
pamh@lotpop
Comments