Advice on overpriced used cars

[Mel]

After a huge pack and ridiculously high shop bills, we pretty much have retail on our used cars.

This becomes a huge hassle because our prices are always extremely high online. We arent popping up until a couple of paged down on sites like autotrader and cars.com

Other than changing the packs and shop issue, which I cant control, is there anything I can do to for better results, or is it going to be dependent on the price entirely?

Thanks!

 

[yagoparamo]

After a huge pack and ridiculously high shop bills, we pretty much have retail on our used cars. This becomes a huge hassle because our prices are always extremely high online. We arent popping up until a couple of paged down on sites like autotrader and cars.comOther than changing the packs and shop issue, which I cant control, is there anything I can do to for better results, or is it going to be dependent on the price entirely?Thanks!

There is always a difference of opinions between what the price should be depending whether you are the owner/manager or a salesperson.


That being said, if the prices are truly inflated, here are the reasons and choices:


A) They look for low volume of sales and high gross and they will pay you accordingly. Stay at this place, enjoy your free time after you do a few 10 pounders the first half of every month.


B) They show up at night on their way back from their yacht while driving their ferrari and they tell me we didn't make any money on this deal. Walk across the street, get a job in the next place.

 

[Jlewis74]

Not sure of your position in the company but these issues tend to take care of themself with low volume and low gross. The used car manager should be keeping the shop in line. Many shops see the used car dept as their bread and butter and they will over fix used cars all the time. When I was used car manager I reviewed any shop bill that was over $300 as in I went to the shop and they had to show me what they were fixing and why. I looked at it as I was their #1 customer and I expected the used car dept to be treated that way. As for the pack goes that is the GM/Owner and no much you can do about what.

Just wondering what is your aveage RO per used unit?

 

[ed.brooks]

After a huge pack and ridiculously high shop bills, we pretty much have retail on our used cars.

This becomes a huge hassle because our prices are always extremely high online. We arent popping up until a couple of paged down on sites like autotrader and cars.com

Other than changing the packs and shop issue, which I cant control, is there anything I can do to for better results, or is it going to be dependent on the price entirely?

Thanks!

Melanie - It sounds like buying the right inventory and pricing those cars "to market" is pretty much out of your hands. You are behind the eight ball, starting out in a hole, whatever - choose your own bad analogy.

But realize price isn't everything. Dealers that price competitively have a definite advantage, yes, but you can and should do everything in your power to mitigate your disadvantage. Concentrate on what you DO have control over. If you have responsibility for taking photos, shooting videos, and/or writing comments, make them GREAT! Compelling, stand-out content on your VDPs on all the websites is crucial ESPECIALLY when you are a little over-priced.

I wish you all the best!

 

[Mel]

Jeremy: Unfortunately, the average is RO is between 1200-1400. Every internal shop bill is looked over by the GM who approves them. Our pack is 2800. Between the 2 of them, we are at 4k additional (I know how high that is) In order to make any money we have to price way high.

Right now, I am working on getting a photobooth together so that I can take better pictures that what our dealerspecs rep takes on the lot.

Ed: Videos sounds like a great idea! Do you recommend piecing a slidehow of pictures together, or a bit more in depth like a quick walkaround on the car?

Thanks again!

 

[Alex Snyder]

RO is between 1200-1400. Our pack is 2800.

I'm with Ed here. Have the best photographed, commented, video'd, and option-listed cars on the Internet.

 

[ed.brooks]

Jeremy: Unfortunately, the average is RO is between 1200-1400. Every internal shop bill is looked over by the GM who approves them. Our pack is 2800. Between the 2 of them, we are at 4k additional (I know how high that is) In order to make any money we have to price way high.

Right now, I am working on getting a photobooth together so that I can take better pictures that what our dealerspecs rep takes on the lot.

Ed: Videos sounds like a great idea! Do you recommend piecing a slidehow of pictures together, or a bit more in depth like a quick walkaround on the car?

Thanks again!

I'm not a big fan of stitched slideshows but they are better than nothing. A big opportunity that you might be missing is in the area of custom comments - are you just using the Dealer Specialties vin explosion now?

 

[joe.pistell]

$2800? OMG. Tie an anchor to your neck and go swimming. WTF.

Question: Would you work at a restaurant if the owner took 60% of the tips?

Just sayin'

 

[ddavis]

There is nothing wrong with the pack or reconditioning unless the dealership wants to sell cars. Is there something, so special, that customers will be willing to pay a premium?

 

[Jeff Kershner]

I like Joe's comparison.

Mel, I would get a copy of each vehicles reconditioning report from the shop. If that much reconditioning is going into each, then you may have a story to tell with each vehicle. It's rare to see dealers take the time to highlight what services have been performed to the vehicle before making it's way to the lot. Some will highlight their 100 point inspection but most consumer over look these overused and abused Why Buy.

You want --

Does it have new tires? If not, what kind of wear is left?
New Brakes?
New Exhaust?
Fresh Oil change?
Alignment (with the new tires)?
New Battery?
New Belts?

Find the value-add reconditioning services that have been performed to each vehicle and HIGHLIGHT THEM! Highlight with images, and within your custom vehicle comments.

Get a copy of the passed state / OEM inspection sheet and / or repair order - include a photo of each when taking photos of the vehicle (please these photos inline between photo 4-10. Give the customer a visual representation of the worked performed. Bring transparency into the mix. Include

There are a few services that will help you highlight value add feature/options AND service maintenance items. I was using PureCars Value reports to accomplish this. I really liked the previous version of their Value Reports - they had an Official 3rd Party look and feel. They have since then made some changes but still retain the ability to grab this information from your DMS and highlight the performed value add maintenance items performed. These services are highlighted as an icon (visual) that can be used to display on your dealership website.

Screen Shot:


Again, you don't NEED a service to get this done for you but it might make it easier. You house the data, it's all in how you effectively present it to the consumer.