- Feb 16, 2020
- 3
- 0
- First Name
- Frankie
I took over as GSM 2 years ago and my dealership has struggled big time with used cars. Hoping someone(or several people) can provide some assistance or insight. Here the skinny - we are a luxury dealership in NJ with a high lease penetration (70%+). We do about 65 new every month and currently at the 20-25 used level. Our problem is because of high lease penetration we only get about 10 trade ins a month and of those 10, maybe half are retail worthy (not 250k mile rats). Therefore we have a huge problem sourcing used cars. We get lease returns however to buy those we pay a few thousand more than what we should. Example, a lease return can be sold for $25k and my purchase price to buy the car for inventory is $24,500. Then I have a $500 pack that gets added and we pay door rate with service. Plus to certify the car the certified fee is about $800. That won't work. We buy cars at auction however we are in the same boat there. We look into curb purchases but we need 60+ cars in stock and we may be able to get 1-2 curb purchases a month. We have averaged maybe another 1-2 out of service drive monthly as well. Does anyone have any insight?
Thank you!
Thank you!