Thanks For Ruining It For The Rest Of Us

[digital_gangster]

Our experience.....
For buying inventory, we setup a "buying event" and staffed a building we own that does not have sales people with our buyers for 1 week. Offering up to $3k over KBB Fair Value. 3 minute appraisal, check on site, no obligation. Bought 53 cars that week. 3 went to wholesale, the rest distributed to our lots and the week resulted in 7 car sales when customers left with the check and took it to our local dealership to buy a car. We teamed up with our local KBB guy which offered signage to build trust and indicate where the event was.

A simple FB ad to surrounding area with outlandish sales copy and disclaimers went to a landing page with map and additional information for event (traffic captured as intent to sell/buy). All in all, we have had 3 of these events and all said and done, we purchased ~100 vehicles with only 15 going to wholesale. We are still calculating the front/back end profits for these cars, but early indication shows the events in our area were a success.

Most of the feedback was good and many were happy that NO SALES were on staff when they showed up. From here, we are going to create an evergreen campaign and point the leads directly to our main buyers for the auto group offering all of the same claims as the events we held.

 

[hondadealer]

My Honda store buys 30 -40 vehicles per month from private sellers (not our customers) in a market of a little over a million people. For those looking to acquire vehicles privately, here are some tips:
1) Develop a consistent repeatable process. The biggest mistake that dealers make is that they manage to get customers in for an appraisal and they just hit them with a number as if they were a wholesaler or other dealer. We don't sell cars to individuals that way, so we aren't going to be successful buying them that way either. Your process should include:
a) Give them a reason to come in for an appraisal - we offer them a free Carfax on their car and a printed market value analysis
(we use the vAuto report) and we advise them that we will cut a check on the spot and give them a ride home if they transact
with us.
b) When the customer arrives, don't leave them waiting. Then explain the process, promptly complete the appraisal, and explain
how you got to your number including reconditioning, dealership profit, etc
c) Recognize that you will only close 10 -15% of those customers who show on first visit (if you do a good job) but if you treat them well and they have a positive experience, many of them will come back (our close ratio including Be Back is over 20%), after they are unable to sell their vehicle privately.
2) Put sufficient resources into the effort. Dealers think nothing of paying $400 - $500 per unit as an auction fee and having their
Used Car Manager out of the dealership to overpay for cars at the auction but bristle at the the notion of spending money on people to execute this process properly within the dealership. We have a full time private acquisition buyer and another BDC member to manage appointments, answer the phone, conduct proper follow up etc.
3) Technology is your friend. We use the Vehicle Acquisition Network software (VAN) that automates the outbound contacts to private sellers. It works very well but like any software, you need to develop the processes and discipline around using the software to be successful.

 

[digital_gangster]

My Honda store buys 30 -40 vehicles per month from private sellers (not our customers) in a market of a little over a million people. For those looking to acquire vehicles privately, here are some tips:
1) Develop a consistent repeatable process. The biggest mistake that dealers make is that they manage to get customers in for an appraisal and they just hit them with a number as if they were a wholesaler or other dealer. We don't sell cars to individuals that way, so we aren't going to be successful buying them that way either. Your process should include:
a) Give them a reason to come in for an appraisal - we offer them a free Carfax on their car and a printed market value analysis
(we use the vAuto report) and we advise them that we will cut a check on the spot and give them a ride home if they transact
with us.
b) When the customer arrives, don't leave them waiting. Then explain the process, promptly complete the appraisal, and explain
how you got to your number including reconditioning, dealership profit, etc
c) Recognize that you will only close 10 -15% of those customers who show on first visit (if you do a good job) but if you treat them well and they have a positive experience, many of them will come back (our close ratio including Be Back is over 20%), after they are unable to sell their vehicle privately.
2) Put sufficient resources into the effort. Dealers think nothing of paying $400 - $500 per unit as an auction fee and having their
Used Car Manager out of the dealership to overpay for cars at the auction but bristle at the the notion of spending money on people to execute this process properly within the dealership. We have a full time private acquisition buyer and another BDC member to manage appointments, answer the phone, conduct proper follow up etc.
3) Technology is your friend. We use the Vehicle Acquisition Network software (VAN) that automates the outbound contacts to private sellers. It works very well but like any software, you need to develop the processes and discipline around using the software to be successful.

Excellent process you have here. I appreciate you sharing. For the most part, we offer many of the same things and I agree....treat the customer well even if they walk and they will be back.

We offered rides home as well and thought that was the smallest little thing. It turned out to be quite important and those that needed a ride were very appreciative of that option.

We are in the process of setting up a stand alone buying center and I am going to pass these tips out to the buying manager just as a reference to keep the process tight and easy to follow.

 

[Jeff Kershner]

For the many dealers using an online trade-appraisal, route those leads (via text if possible) directly to your buyer(s) or managers and set up a new process around it.

 

[Tom Gregg]

My Honda store buys 30 -40 vehicles per month from private sellers (not our customers) in a market of a little over a million people. For those looking to acquire vehicles privately, here are some tips:
1) Develop a consistent repeatable process. The biggest mistake that dealers make is that they manage to get customers in for an appraisal and they just hit them with a number as if they were a wholesaler or other dealer. We don't sell cars to individuals that way, so we aren't going to be successful buying them that way either. Your process should include:
a) Give them a reason to come in for an appraisal - we offer them a free Carfax on their car and a printed market value analysis
(we use the vAuto report) and we advise them that we will cut a check on the spot and give them a ride home if they transact
with us.
b) When the customer arrives, don't leave them waiting. Then explain the process, promptly complete the appraisal, and explain
how you got to your number including reconditioning, dealership profit, etc
c) Recognize that you will only close 10 -15% of those customers who show on first visit (if you do a good job) but if you treat them well and they have a positive experience, many of them will come back (our close ratio including Be Back is over 20%), after they are unable to sell their vehicle privately.
2) Put sufficient resources into the effort. Dealers think nothing of paying $400 - $500 per unit as an auction fee and having their
Used Car Manager out of the dealership to overpay for cars at the auction but bristle at the the notion of spending money on people to execute this process properly within the dealership. We have a full time private acquisition buyer and another BDC member to manage appointments, answer the phone, conduct proper follow up etc.
3) Technology is your friend. We use the Vehicle Acquisition Network software (VAN) that automates the outbound contacts to private sellers. It works very well but like any software, you need to develop the processes and discipline around using the software to be successful.

@hondadealer (Greg Churchill) is a pro at this. Under his leadership, Greg's dealers has been executing on this strategy for more than 3 years with very consistent results. All of the suggestions are sound advice.

To this I would add, fish where the fish are. Vehicle Acquisition Network has observed a shift of private sellers from platforms that offer little to no transparency (such as Craigslist) to platforms that allow the buyers and sellers two-way visibility (like Facebook Marketplace). Adopt a process to engage with consumers where they are.

This can be a bit tedious since Facebook Marketplace does not permit filtering to just consumers. It can be done, but requires some additional effort and organization. As Greg indicated, we have created technology to help dealers accomplish this and have also made buying from Facebook Marketplace more efficient.

 

[ChrisR]

My Honda store buys 30 -40 vehicles per month from private sellers (not our customers) in a market of a little over a million people. For those looking to acquire vehicles privately, here are some tips:
1) Develop a consistent repeatable process. The biggest mistake that dealers make is that they manage to get customers in for an appraisal and they just hit them with a number as if they were a wholesaler or other dealer. We don't sell cars to individuals that way, so we aren't going to be successful buying them that way either. Your process should include:
a) Give them a reason to come in for an appraisal - we offer them a free Carfax on their car and a printed market value analysis
(we use the vAuto report) and we advise them that we will cut a check on the spot and give them a ride home if they transact
with us.
b) When the customer arrives, don't leave them waiting. Then explain the process, promptly complete the appraisal, and explain
how you got to your number including reconditioning, dealership profit, etc
c) Recognize that you will only close 10 -15% of those customers who show on first visit (if you do a good job) but if you treat them well and they have a positive experience, many of them will come back (our close ratio including Be Back is over 20%), after they are unable to sell their vehicle privately.
2) Put sufficient resources into the effort. Dealers think nothing of paying $400 - $500 per unit as an auction fee and having their
Used Car Manager out of the dealership to overpay for cars at the auction but bristle at the the notion of spending money on people to execute this process properly within the dealership. We have a full time private acquisition buyer and another BDC member to manage appointments, answer the phone, conduct proper follow up etc.
3) Technology is your friend. We use the Vehicle Acquisition Network software (VAN) that automates the outbound contacts to private sellers. It works very well but like any software, you need to develop the processes and discipline around using the software to be successful.

I used VAN in the past, was a good source of research data to see what was on the market, and gave us opportunities to educate the consumer, while working to purchase their vehicles.

If you talk to Yvonne Dotson, let her know Christian (formerly in Prescott AZ) says hello.

 

[Sorel]

Sarah Fischer, Chief Marketing Officer of the Don Franklin Auto Group in Kentucky, has had great success with branding their trade in process. Frankin Fast Cash is all over their marketing- overlays on their vehicle pictures, their website, really well done entertaining short video created about it, their FB page. She said her buyer had never been able to get above 36 cars bought from consumers a month, but at the time of her interview that I listened to they had bought 50 cars and there were still 10 days left in the month. Video on their landing page is worth a watch - really good marketing. She is a big proponent of branding.

What's Your Trade In Worth? | Don Franklin Lexington Automall

Discover what your car, truck or SUV is worth! You're just a few clicks away from the trade-in value of your vehicle, from Don Franklin Lexington Automall.

www.donfranklinautomall.com

 

[ryan.leslie]

I was saying EXACTLY this to the other managers here last week. For once we actually do need to acquire more vehicles from our previous customers but I doubt they believe it.

I think they are more likely to believe it when you give them a "real" number that is also a fair number for both parties. "We want to buy your car, c'mon on in to get your appraisal" falls kinda flat when Carvana, Vroom, Lithia's DRIVEWAY, and a whole slew of partner sites will put a real number on your car from your couch.

It isn't hard for a consumer to get a real cash offer for their car, and that isn't going to change. Remember when consumers would actually "call for price" when we didn't want to advertise a price online? Do you think that would work today? The consumer now assumes a lack of transparent pricing online means you are asking too much so they don't bother calling. I'd suggest to you that the same transparency trajectory has hit trade-in values and consumer vehicle acquisition.

Consumers are just as likely to "c'mon on in for an appraisal" once they discover that they have other options as they are to "call for price," and that really shouldn't surprise us. It is two sides of the same coin.

 

[Alexander Lau]

 

[BillKVMotorCo]

It hit me the other day that in all of those efforts in the past that I JOKED about and all of the things that we have done to try to acquire cars is that we have always taken a digital approach to it. So I wondered if maybe going to a place we have never gone with it might have different results. We don't do any "traditional" advertising for anything, so we broke it off old school and ran a small $1,000 radio ad. BOOM!