The dealership landscape is constantly evolving, but keeping pace with the auto retailers of tomorrow has never been more challenging than it is today. As new-vehicle sales slow and margins tighten, dealers are turning to their used vehicle department to keep their profits on the upswing across the dealership.1
According to a recent NADA Data report, the used-to-new-car sales ratio for the average franchised dealership has gone up steadily since 2015.2 Market factors like affordability, service, and peace of mind with certified pre-owned (CPO) are among the top reasons consumers are going with used vehicles instead of new. And it’s a win-win across the board: not only do used cars bring in extra sales, they serve as a catalyst that supports other parts of the dealership.
But despite the current upward trend for used-vehicle sales, success isn’t necessarily in the bag for every dealership. According to an article in Auto Remarketing that cites the Q4 2018 Cox Automotive Dealer Sentiment Index, overall dealer sentiment is down for the used car market.3 This means that of the dealers surveyed, those who are expecting conditions to be weak in the future outnumber those who believe they will be strong.
It comes down to survival of the fittest.
So how can your dealership keep up the momentum of this positive used-car trend as others are becoming skeptical? Not surprisingly, certified pre-owned vehicles are selling quicker and for better margins than similar, non-certified used vehicles.4 For perspective, in 2017 consumers purchased about 2.6 million CPO vehicles, and through the first ten months of 2018 we’ve seen a rise in sales of 2.2 percent.4
At EasyCare, we believe dealership differentiation can be simple. With our exclusive Motor Trend® Certified program, you can certify your off-brand vehicles with the name car buyers trust. Plus, you can certify your factory vehicles less expensively than most factory programs, and offer customers even more coverage.
Your pre-owned vehicle inventory is only as good as the certification program it’s backed by. All Motor Trend Certified vehicles are upgraded with a comprehensive warranty and value-added benefits like paintless dent repair and key coverage for the ultimate peace of mind.
In addition to certification, the Motor Trend Certified program also delivers these key advantages:
- Market your inventory to a wider audience and create more sales appointments
- Defend your online pricing strategy
- Close more sales and increase gross profit
- Expanded eligibility for your high-mileage and older vehicles
- Exclusivity and differentiation in your market
So, when you’re thinking about where to go in this competitive market, don’t write off competing for a broader share of the used-car sales. And be sure to leverage a CPO program, like Motor Trend Certified, to provide your customer the ultimate peace of mind when shopping for their next used vehicle.
Compliance is one of the most important things to be concerned about in your dealership, especially when change is on the horizon. With the new “Motor Vehicle Dealers Trade Regulation Rule” being proposed by the FTC, there are many things to start educating yourself on. We have established a few suggestions to better prepare your dealership for change in compliance.
Digital tools can help dealers avoid costly compliance mistakes, but software is only as good as the people behind it. Make sure your staff is informed about major regulations that could cost your dealership time and money, rather than relying on technology alone to manage your dealership's compliance efforts.
Differentiate your dealership with a certified-pre-owned program, like Motor Trend Certified, to compete for a broader share of used-car sales.
Compliance begins the second your customers step on the lot. Because of this, it’s vital for every dealership to ensure that their processes are compliant, and they provide the necessary compliance training to support their team.