CarCare’s Post

"Everything to do with Recon is about predictability." - Joel Bassam Successful reconditioning starts with buying the right car (i.e., the predictable car). Knowing the expected cost and time for reconditioning a vehicle BEFORE purchasing it allows you to determine what you would need to price it to make it a worthwhile investment. This means AVOIDING vehicles that need body work, require hard-to-find parts, have active recalls, and are "story cars" that will inevitably slow down your reconditioning timelines and introduce uncertainty into your cost projections. Remember: The market value of a used vehicle is only relevant and accurate if you anticipate your recon expenses. Couple that predictability with consistent, targeted reconditioning procedures that remove bottlenecks and allow your shop to work efficiently without waiting for approvals, and you have a recipe for MAGIC. ☑️ Start by being highly disciplined about the vehicles you choose to acquire. ☑️ Avoid "story cars" that require specialized repairs, hard-to-find parts, or extensive bodywork. ☑️ Establish clear, targeted reconditioning checklists that eliminate the need for decision-making once the car hits your shop. ☑️ Empower your staff to execute these processes without waiting for approvals or recommendations from management. When you combine predictable acquisitions with streamlined, decision-free reconditioning, you unlock the true potential of your operation. You'll be able to get vehicles retail-ready faster, with greater cost certainty. This translates to faster inventory turns, higher gross profits, and a better customer experience. In today's rapidly evolving automotive landscape, dealers who fail to optimize their acquisition and reconditioning strategies will quickly fall behind. Introduce as much predictability as humanly possible into your reconditioning workflows. Watch your shop (and profitability) take off 🚀🏎️ #retailautomotive  #reconditioning  #usedcars  #dealers 

The most successful used car operations do these 5 things consistently: #1 Select the right inventory They buy everything, but only keep the right inventory for their market. #2 Acquire from the right sources They choose sources that deliver positive outcomes for their dealership (VDPs, Leads, Sales, and Profit). #3 Price those cars right They price cars to maximize turn rate not gross profits. #4 Do NOT fall in love They pay fair market value for the vehicles they buy. #5 Prioritize appraisal velocity > sales velocity Number 5 in and of itself is a powerful strategy to transform your used car departments (almost) overnight. The not-so-intuitive reality is if you STOP thinking about gross profit, you can maximize it. Instead of obsessing over your gross profit and sales, maximize your turn rate. I’ve done the math, and you are better off taking $20,000, buying a car, selling it within two weeks, and doing that 12, 15, or 18 additional times per year — regardless of how much profit you make on each car — than you would be if you didn't acquire and turn those extra 18 cars. Acquiring more vehicles in-store and selling more cars will give you a greater ROI than making a profit of $3,000 on every vehicle you sell but only moving five cars per year. It's a simple formula: Increase your Appraisal Velocity and you will make more in-store acquisitions and more $$$ (every time). #automotiveindustry #dealers #usedcars #retailautomotive

Off-Lease Vehicle Turn-In Drought: How Car Dealers Can Manage CPO Pain 💥 "Just to put an exclamation point on the extent to which this off-lease thing is going to create stress (and what I called out as a party crasher), Is that once again, in 2019, there were 4 million customers a year that largely brought their off-lease vehicles back to their dealership. That facilitated perhaps another new car sale, that facilitated a used vehicle acquisition, 💡 A three-year-old car we can throw into our CPO program, we can flip that used car and make a pretty good pop (with fairly low effort on behalf of the dealer), Because it was almost like an annuity of off-lease cars that are just coming back. Well, next year, that 4 million drops 2.3 million. ❌ Almost half! And I think that Patrick A Janes's point is that dealers are going to have no choice, But to become more sophisticated (and as you say, using technology) and put more emphasis and effort on this part of their business Because we're losing half, Half of the volume that we're used to seeing." ⭐ Brian Finkelmeyer, Sr. Dir. Enterprise Insights, Cox Automotive Inc. https://lnkd.in/gMjmU9ja 🎬 Watch More Brian on "Automotive Ecosystem" https://lnkd.in/gWCa4Fwk ✅ Subscribe to ATI on YouTube https://lnkd.in/gUmQ6U2G 🚀 Contact ATI Auto Business https://lnkd.in/gDeKVdv8 #automotiveindustry #dealers #lease #cpo #inventory #retail #sales

What’s the worst thing somebody can say when you ask them for something? “No” right? If you’d like to source more cars from your current customers, there’s a perfect time and a perfect question to ask them. Our friends at DealerRater and Cars.com asked 21,000 consumers “The last time you took your vehicle in for service, did anyone from the dealership discuss the trade-in value of your vehicle with you?”. Sixty percent of those people replied “No”. There it is again…that aroma of opportunity. With new car inventory piling up at most dealerships, cars getting more expensive, and interest rates being high, more customers are looking for affordable used vehicles that are just a few years old. Unfortunately those are becoming a lot harder to find given the decline in lease returns (check out “The Impending CPO Drought" for that story). What to do? Ask everyone that’s coming in for service if they’d like to see what their car is worth. What’s the worst they can say? No? Even better, just go ahead and print out their trade-in market report, staple it to the receipt, and show it to them to start that conversation. You will source more vehicles each month. #automotive #usedcars #cardealerships

What’s the worst thing somebody can say when you ask them for something? “No” right? If you’d like to source more cars from your current customers, there’s a perfect time and a perfect question to ask them. Our friends at DealerRater and Cars.com asked 21,000 consumers “The last time you took your vehicle in for service, did anyone from the dealership discuss the trade-in value of your vehicle with you?”. Sixty percent of those people replied “No”. There it is again…that aroma of opportunity. With new car inventory piling up at most dealerships, cars getting more expensive, and interest rates being high, more customers are looking for affordable used vehicles that are just a few years old. Unfortunately those are becoming a lot harder to find given the decline in lease returns (check out “The Impending CPO Drought" for that story). What to do? Ask everyone that’s coming in for service if they’d like to see what their car is worth. What’s the worst they can say? No? Even better, just go ahead and print out their trade-in market report, staple it to the receipt, and show it to them to start that conversation. You will source more vehicles each month.

Which term do you think resonates better with customers - preowned or used cars? Here's why it matters in today's fast-paced environment: ✔️"Used" implies wear and tear, while "pre-owned" suggests retained value. It's a subtle but crucial shift in perception. ✔️"Certified Pre-Owned" isn't just a marketing ploy; it's a strategy to stand out by adding value by offering used cars with a standardized inspection and an extended warranty and guarantee, helping differentiate "used" cars from other manufacturer's used cars. ✔️Increase sales growth by building brand loyalty, providing a positive experience with used vehicles, and giving first-time buyers increased confidence and comfort with their purchase. Words aren't just words—they're tools to enhance customer communication and boost sales. Contact us today at sales@firstus.com to learn more about how we can maximize your dealership's revenue. #certifiedpreowned #autofinance #autodealership

Navigating the Current Vehicle Market: When Will Car Prices Drop? Understanding the Current Landscape: The COVID-19 pandemic unleashed unprecedented disruptions across industries worldwide, and the automotive sector was no exception. From supply chain challenges to shifting consumer preferences, the repercussions were felt deeply. Supply Chain Disruptions: The automotive supply chain, intricately woven across continents, faced disruptions at various touchpoints during the pandemic. Factory closures, logistics bottlenecks, and semiconductor shortages all contributed to the scarcity of new vehicles in the market. Changing Consumer Behavior: The pandemic also precipitated changes in consumer behavior, impacting the types of vehicles in demand. With remote work becoming more prevalent, there has been a surge in interest for SUVs and trucks, while demand for sedans has dwindled. The Role of Inflation: Inflationary pressures, a global economic phenomenon exacerbated by the pandemic, have added another layer of complexity to the pricing equation. Rising material costs, from steel to microchips, have compelled automakers to adjust their pricing strategies to maintain profitability. As inflationary trends persist, they continue to exert upward pressure on vehicle prices. Anticipating Future Trends: While the current landscape presents challenges, there are indications that vehicle prices may eventually stabilize or even decrease in the future. Several factors point towards this potential shift: 1. Resolution of Supply Chain Issues: As global supply chains gradually recover from the disruptions of the pandemic, manufacturers may regain their footing in production. This could alleviate some of the supply constraints currently driving prices upwards. 2. Market Saturation: The pent-up demand triggered by the pandemic may eventually taper off as consumer preferences normalize. As the market reaches a state of equilibrium, competition among manufacturers could prompt price adjustments to attract buyers. 3. Technological Innovations: Advancements in manufacturing technologies, coupled with economies of scale, could lead to cost efficiencies over time. This may enable automakers to offer vehicles at more competitive price points without compromising on quality. Navigating the Present: In the interim, consumers are faced with the challenge of navigating the current vehicle market. For those in need of a new vehicle, careful consideration of budgetary constraints and long-term needs is essential. Exploring alternatives such as pre-owned vehicles or leasing options may offer more affordable pathways to vehicle ownership. Moreover, staying informed about market trends and monitoring pricing fluctuations can empower consumers to make well-informed decisions.

Did you know that new-car discounts can actually harm long-term residual values? Cash discounts on one vehicle model can negatively affect the residual values (RVs) of other models in the line-up. 📉 When a more popular and desirable vehicle is heavily discounted, it can result in that model being cheaper than a less popular model within the same brand. This places pressure on the less popular model's RV to make it a competitive choice for buyers. 💶 When potential used-car buyers see significant cash discounts on new vehicles, they may also expect similar price reductions in the used-car market, leading to lower resale values and impacting RVs. 📊 This means that aggressive cash discounts affect the immediate sales of new vehicles and have implications for the long-term residual values in the used car market. 🖱️Visit our website to learn more about how residual value data could be the make-or-break of your brand. #residualvalue #residualvaluedata #residualvaluetrends #automotivedata #automotivemarket #cardiscounts #carmarket https://ow.ly/y58c50SFSPe

Did you ever feel like you weren’t really buying what they were selling you? Picture this: you're captivated by an automobile commercial on TV. The imagery pulls you in—luxury, performance, freedom. It’s more than just a car; it’s a vision of lifestyle. Inspired, you walk into the dealership, expecting the same magic. But as you step through the doors, the dream fades. The immersive experience that enticed you on-screen is nowhere to be found, replaced by a hard-sell approach that feels disconnected from the product. Salespeople, often untrained in the brand's true promise, focus on upselling rather than presenting the car as the realization of a dream. You leave with a purchase but feel shortchanged. That spark of excitement is dimmed, and once you’re home, you find yourself flipping through the manual, trying to recapture the thrill from the commercial. The connection is incomplete, leaving a sense of something missing. This gap between the vision brands aim to create and the actual customer experience is striking. So, where is the issue? Is it in the relationship between automotive brands and major groups—like Sonic Automotive, Penske, Morgan, and Lithia? Or is the disconnect in how dealership owners and sales teams interact? Perhaps it’s in the breakdown between salespeople and customers. Somewhere in this chain, a crucial element is missing. It’s time to reset—to re-evaluate sales training, dealership structures, and the ways we can bridge the disconnect to align brand aspirations with customer expectations. It’s more than just selling cars; it’s about delivering the complete experience, honoring the dream that was promised, and restoring joy and satisfaction to every purchase. Transforming the auto sales experience to truly reflect the brand’s promise is essential. #AutoIndustry #CustomerExperience #CarDealerships #AutomotiveSales #SalesTraining #AutoTech #CustomerSatisfaction #BrandPromise #ElectricCars #SalesExperience #Innovation