Market Analysis - East vs. West Coast

[FLdealer]

Hi guys (& gals),
I wanted to get some opinions on this topic, as honestly I need advice/input. Help me gain some insight please! To begin with, I have worked at (large sized) and also owned (medium sized), dealerships on the West Coast (both in Southern California and also AZ/Phoenix.)

My focus is on some occasional exotics, but mostly European cars - BMW and M cars, Mercedes and AMG cars, Volkswagen, Audi, Land Rover, Bentley, Nissan GT-Rs, and Corvettes. Cars that are 6-12 years old, super clean, ~100k miles, and needing nothing. While I have advertised on all the usual sites (Ebay, Autotrader, Cars, KBB, Craigslist, etc) - I found we had the best results with Ebay and (surprisingly), Craigslist.

Now, fast forward a bit. I’ve left, and am now in Florida. The Orlando/Tampa area. Have a small dealership going here, focusing on the same type of inventory and clientele. Orlando & Tampa are a huge conglomerate of people and Atlanta (also huge) isn’t too far away either! I have a very nice website, been working on SEO, have a Google presence, all the usual suspects. While, in all honesty, I have NOT yet signed up to do business with Autotrader or Cars, I HAVE done Ebay and Craigslist extensively while here.

I have also analyzed my prices EXTENSIVELY. Every few days. I have searched Craigslist, Ebay, Autotrader, Cars, CarGurus, Offerup, and Letgo, for cars which are relatively similar to mine (condition, miles, options, etc) and compared their prices to my prices. I have priced my vehicles fairly aggressively. They’re not the absolute rock bottom cheapest, but they’re aggressive and competitive in every sense of those words! None of my cars are priced “high.” They’re in the lower 25% of the price spectrum for comparables.

And — I’m just simply not getting very much traffic, IF ANY, at all!!! Leads are not calling/coming in. Emails are not coming, texts are not coming. There is basically no interest. I can’t begin to fathom why, and I’m struggling here. Very few leads are coming, literally next to none. *WHO WOULDN’T* want a TRULY nice, exceptional European car at a reasonable price, in a conglomerate area of 12+ MILLION people (incl Atlanta metro area)????

So, is it one of these three things below?? Or something else I am missing??

1. It’s the slowest time of year?? Beginning Oct 1st, approx when I listed a handful of vehicles? People gearing up for Thanksgiving and Xmas. Maybe people just aren’t really car shopping much right now? In other words I should be more patient!

2. It’s my platform(s)??? I’ve been doing some research, and talked to someone here - and I’m learning that Craigslist apparently ISN’T that great, especially on the East Coast, and also for dealer vehicles here? And Ebay Motors isn’t what it used to be either? (I’ve just signed up with CarGurus, Autotrader/KBB, and Cars.) Wait and see what happens with these platforms/how much serious interest is generated, therefore resulting in sales???

3. It’s the market on the East Coast??? What I’m MOST afraid of, as these are the vehicles I know. Simply put: We’re not in Cali anymore/this is Florida not Cali??? A lot of people on the West Coast want a European car. I see plenty of Euros and Exotics here in Florida, but I would say most of the ones I see, are NEWER (less than 4 years old), as opposed to 6-12 years old like my inventory. But I can’t see why *ONE* person out of millions nearby, won’t buy the CLEAN vehicle(s) that I am offering for sale??? It’s not like customers show up, drive the cars, and pick them apart - nobody is calling to ask questions or come look at them.

Please let me know your expert thoughts, and help me out here. Your time and advice is VERY MUCH appreciated!!! Thanks a million, in advance!!!

 

[Steve Stauning]

1. You're actually in Florida during the busy season (begins around October 1 for my dealers in areas frequented by snowbirds).
2. Craigslist is a great site for my Florida dealers, but your ads can't be too cheesy and must be fairly straightforward with price included.
3. The market shouldn't matter with the vehicles you're selling (it's not like Fargo, ND versus Phoenix, AZ, for example); though making sure your inventory is seen on the coasts (Tampa/St Pete and Daytona) is likely more important than expecting someone from Atlanta to fly down to Orlando for a vehicle they can probably get closer to home.

That's my take based on the info provided. If you want to share your website address, I'm sure the DR community would be happy to dive in a little deeper.

 

[BrendanD77]

I can think of a few possible factors.

1. Have you established a good bank of online reviews at your new location?
2. Competition - OffLeaseOnly is a big player in Florida with vehicles that are close to what you mention in both proximity and vehicle selection.

I previously worked at Cars.com and can tell you they performed well in Orlando as it is/was one of their legacy, Tribune Media markets. I also lived in Atlanta for 5 years and agree with Steve in that ATL will be tough sledding to expect to pull many folks down from there unless you have something very exotic/rare.

One other thought, and I'm not an expert on this by any stretch but California is an expensive place to live, especially compared to Central Florida. Perhaps that inventory that was in high demand in SoCal is just a little off the mark in Florida? Again, I'd take a look at OffLeaseOnly as they sell a ton of slightly newer, lower mileage vehicles.

 

[FLdealer]

Thanks for the replies guys!!
To address a few questions and points brought up:

Stauning -
2. About Craigslist - ads are indeed very straightforward, simple, not cheesy, with price included (& clearly visible) on all.
3. I completely agree, that this Florida area should be fairly similar to my previous markets, and is in no way shape or form a drastic difference like Fargo, ND or Missoula, MT would be from Phoenix. Which is why I’m baffled.
I will certainly make sure my ads are posted to, and seen on the coasts though - and very good point, thank you!!

Brendan -
1. Excellent point about the reviews, sir. I am big on having good reviews! Unfortunately, I have NO reviews at my new place (I actually haven’t completed any retail business yet, just a few wholesale deals.)
And, I’m not one to post fake reviews or ask friends to post reviews. I much prefer my reviews be legitimate (and starting out with no reviews has not been too hard in the past, either.) Though I certainly strive to get several good reviews under my belt as quickly as possible.
2. About Offleaseonly - I am fairly familiar with them, and they certainly have a lot of inventory! Their cars are generally newer than mine (1-3 years old compared to 6-12 years old), so I’m not sure how much of a competitor to me that they truly are? Yes theirs are newer, and have lower mileage - but I STILL do believe there should be a segment, market, & desire for nice, well maintained, slightly Older luxury Euro cars.... Thanks for reminding me of them though, as I had completely forgotten about their operation.

Fair enough on Atlanta! I will stop advertising there, and not really expect any business to come from there, either.

Yes, SoCal is definitely expensive. People love luxury goods there. Cars are status symbols. Maybe not so much in Florida?? That’s what I’m most worried about - if European cars aren’t as high in demand in Florida. But again, mine are aggressively priced and I would think I could find ONE buyer out of say, HALF, or even 1/3 (land wise), the state of Florida?! (Still equates to millions of people.)

Thank you guys again!! I look forward to hearing any more suggestions. Have a great day!

 

[BrendanD77]

Of course and best of luck! I wasn't very clear on my SoCal vs. Florida point. What I meant to say is that in SoCal and to your point folks want those cars for all the reasons you mentioned, but many may not be able to afford low mileage, 1-3 year old off lease inventory so they gravitate towards that sweet spot you found in that market...the 6-12 year old, 100k mile cars. In Florida, where the desire is likely as strong, the cost of living is lower, so they seek out 1-3 year old, lower mileage cars vs. the slightly older, higher mileage cars. Just a theory but it would be interesting to see if you see more activity on the slightly more expensive, newer units.

 

[FLdealer]

Ok, I understand your point now!! Makes perfect sense, and is something I need to consider/factor in. Thank you.