Used Car Profit Hacks

When it comes to used car profit, dealers constantly consider the resale value of their inventory. Having a profitable, well maintained inventory can make a huge difference when it comes the speed in which you turn your used car lot.
Here are some simple tips on how to increase the value of your Used Car Inventory.

Wash Your CarsCleanliness Matters

Keeping your cars clean isn’t just for cosmetic appeal, it can seriously affect your cars value. As a percentage of profit improvement, a clean car has the most impact on value for the least amount of expense.
All plastic should be treated with a quality cleaner and protectant, and the carpets should be vacuumed to the point where you can actually see the lines the vacuum made. Get your detail shop a carpet rake, to really make the carpets look awesome.

Hidden garbage under the seats or in map pockets can cost you a sale. Make sure your detailers are looking everywhere and even vacuuming under the seats, trunk and map pockets.

Clean door jams make a real difference as well, have them wiped down and silicone the hinges.

Detail the engine and trunk, clean out their jams as well and be sure there are no signs of oil leaks whenever possible.

Freshen your Inventory often

cars with hoods openOne of the biggest mistakes dealers make is they don’t freshen their inventory weekly. I make it the lot person’s (porter/inventory managers) daily job. They should be flagging 2-5 cars a day to refresh.

Minor Modifications

Sometimes the smallest little details make your cars look so much better and in many cases add profit at a 2:1 ratio. When I was younger I made a living buying cheep cars with rips in the seats and dash boards. I would add seat covers and a minor patch kit for the cracks, then turn around and re-auction the car at a tremendous profit.
Simple things like spray painting the wheel wells black or silvering the end of an exhaust have amazing impact on curb appeal.

Adding Accessories

Some dealers like to add accessories, such as alarms. In my opinion the return is only equal to the value of the added item and in some cases lowers your SRP’s because it sometimes raises the price pass your competitors. Another side effect of adding the accessory in advance is you tend to give it away, instead of selling them at a profit

Minor Bodywork

Mobile paint technician’s are a used car manager’s best friend. These companies will come to your used car lot and can remove scratches and small dents without the hassle of taking your car to a repairer or body shop. They can also treat your car with an extra clear coat, giving the paint a new lease on life and providing added protection against chips and scratches.

When you have your own body shop you can fall into the trap of wanting to paint every minor dent. Dent removal without painting is the better way to go. Again its cost to profit ratio is as much a 4:1
Kevin Leigh, Dealer Simplified
Kevin Leigh

Story Book

One of the most important things you can do to increase the value of your cars is to keep a “story book” which includes such items as:

  • Printed Carfax
  • List of Work Already Preformed on the Car
  • Printed List of Reviews on the Car from Edmunds or Cars.com
  • Printed List of Standard and Added Options
  • Original Mileage statement
  • Warranties Available

Salespeople that show the storybook upfront are far more likely to get top dollar than salespeople that wait until the customer asks for the Carfax.

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