Categories
Car Auction Retail Car Lot Wholesale Lot

How to Stock Used Cars Customers Want to Buy.

& How to Stock Used Cars Salespeople Will Sell!

Buying Used Cars For Your Lot is Easy:

Buying used cars is easy
Lots of Rental Cars Out There

Stocking your used car lot is easy, Right? You can load up on as many cars your lot will hold, fill every spot and you could have it done today. The auctions are loaded with all kinds of cars. Sounds pretty good right but only if you like silver, white or tan x-rentals. Just because something is easy doesn’t mean you should do it. Putting cars on your lot just to fill it up can cost you thousands of dollars. Most of us have been in this spot once or twice. So how do you stock up on cars customers want to buy and that salespeople want to sell.

The good news is that with a little hard work and a little smart work you can find the cars you need and keep them rolling in. Much like looking for cars under $10,000 you are going to need some help from your team. Now don’t get me wrong some of these cars are going to have to come from the auction. Whether you buy online or at the local sale, just make sure you look for cars you need. And don’t over pay for them at the sale, if you are going to step up for a car make sure you buy it from a customer in your showroom.

Wholesale-Used-CarsUnderstand Your Used Car Market:

Once you understand your market and the stores history you can start to build a profile of what cars you need. You never want to just go off your history, this will cause you to miss out on selling the customer what they want. If you have never sold a 2008 Toyota Camry in the past, but every customer in your market is searching for one and you follow your history how many 2008 Camry’s are you going to sell? Thats right, ZERO. History is good but you need to watch the market and look for cars customers want to buy. Again its easy to buy the cars you can buy, but that doesn’t mean the customer wants to buy them from you. Its why they are still available at the sale.

So searching for cars the customer wants to buy is half the job. The other half of stocking your lots with the right cars is pleasing your salespeople. Remember they are the ones that have to sell them. If you can’t get the salespeople on board with the cars you are putting on the lot you might as well burn your money. Some salespeople will sell any car you give them, but not everyone is that comfortable with selling used cars. Most of them will walk right around a used car if they don’t feel good about it and can sell a new one instead. You have to get them in front of every used car, this will lift their confidence and sell you more used cars.

The morning bullpen

Bull Pen Cars Lined Up
Used Car Lot Bull Pen Meeting

Now if you’re asking your self how do I get that done, you may want to try bull penning. Running a morning bullpen isn’t that hard but you can’t half-ass it. The last thing you want to do is waist the teams time with nonsense. Its best to have all the work for your bullpen done the night before. You want to have the cars you are going to show lined up, you don’t want to spend time walking the lot. Also you are going to have to do some homework on the cars, start with a list (year, make, model, miles…). If any of the cars are trades have the salesperson that worked the deal talk about the car. It’s a good idea to get them involved. This is a good time to talk about your go-to market price and to find out if the team has any interest in selling these cars.

Now you can’t let the inmates run the prison but you do need their buy in if you want to move some medal. Do your best to have good information about each car, things like service history, carfax, market data and pricing. Let the team help you weed out the bad cars and you will fill your used car lot with cars people want to buy and ones your salespeople want to sell.

Categories
Business Development Retail Car Lot

Do Your Salespeople Know Their Inventory?

Have you ever had a customer leave your showroom without buying a car? Of course you have. It happens every day at dealerships all over the country. We know that not everyone shopping is ready to buy today and some customers can even wait months or even a year before they make their buying decision. While some of the reasons customers don’t buy are out of your control, some may have bumps on their credit, others owe more on their trade than it’s worth or maybe you just don’t have the car that fits their needs. Or do you?

If you have customers leaving over selection you may need to ask yourself, do the salespeople know the inventory? It may be time to start training on it and if you are asking how to get that done I would suggest running a used car bullpen. Getting your team in front of the cars they need to sell will help you pick up sales and stop customers from leaving over selection.

So what is a bullpen and how does it work. A bullpen is no more than taking your fresh trades, off lease or auction cars and showing them to your sales team in an organized meeting, before you offer them up for sale. Now that’s the short answer, so lets talk about what makes up a bullpen. Well, the first thing you are going to need are some cars. The next thing you need are your salespeople. This one can be tricky, some of the team, and you know who I mean will think it’s a waste of time. Others will show up just because you told them to and some will get engaged and participate in the exercise. You will have to show them why this is a best practice in todays industry and what it will do for them. Once you have buy in from your team its time to set up your bullpen.

Here are a few tips to pull off a great bullpen.

Start by running the bullpen first thing in the morning, and I would have them twice a week. You want to keep them somewhat short, maybe 4 to 5 minutes per car and depending on the size of your store anywhere from 5 to 10 cars per meeting.

Picking the cars you are going to talk about doesn’t have to be hard. The sales managers should be reviewing all the fresh cars everyday. Using an inventory stock sheet will help to weed out the cars that you can’t sell (Bad cars or junk cars) and whatever is left goes in to your bullpen.

After you have picked the cars for the bullpen put together as much information about each car that you can. If you use pricing software print out the market data and what you think you can sell them for. Make sure you have a history report about the cars and any service that has been done to the them. This is good if the vehicle was a trade or lease turn in. It’s always a good idea to have the salesperson that took the car in on trade to tell the team about it and the customer. Having a good story goes a long way when it comes to selling used cars.

Organizing and running the bullpen can be done by a few different people.  Having the used car manager or an inventory manager run the bullpen makes the most sense. However having anyone on the manager team will work. It is essential to have as much interaction from all the managers on the team to show how important the bullpen is. As well as having the veteran salespeople’s participation will help make the most out of the time. You may even want to invite your service manager to join in, this will give service an idea on how much work may be coming their way. Plus having a service opinion on the cars may help you from putting problem cars on your lot saving you money down the road.

Remember you can stock your lot with all types of cars, but if the salespeople don’t know what’s out there your inventory will sit like boat anchors.