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Car Auction Retail Car Lot Wholesale Lot

10 Sites You Shouldn’t Ignore when Sourcing Used Cars

Used Car DealerIf you have been in the car business for any length of time you have faced the dilemma of how to buy used cars. Do I go to auctions? Do I visit private dealers? At Auction Simplified we think you need to be always looking for cars and visiting every venue.

 

hemmings

10. Hemmings

This site is often overlooked by car dealers because they cater mostly to Collectors. But sometimes there are gems hidden in the listings from people that consider their cars to be collectable. Used Mustangs for example or even that oddity you need to fill a customer order. Additionally, if you need old parts, Hemmings is the place to start. To buy used cars from Hemmings, go to www.hemmings.com

bring a trailer

9. Bring a Trailer

If you’re looking for something cool and old, from a rusty Pinto project cars to perfectly restored Camaro, Bring a Trailer is where you want to go. To quote their site; “There is no need to keep sifting through hundreds of hopeless projects or overpriced dealer inventories to find that one car you’ve been looking for. We pick the winners and save you the trouble… the best bargains, the best dream cars, and the best rarities.” To buy used cars from Bring a Trailer, go to bringatrailer.com

autotrader logo8 AutoTrader.com

One thing that is great about AutoTrader is that you can search the nation in a second. So if you are looking for that hard to find specific car, AT is your best bet. Links to Carfax and Kelly Blue Book straight from the site are all plusses. Not everyone likes AutoTrader because of its heavy advertising and because their listings tend to attract people who severely overvalue their cars. However, AutoTrader does have an excellent search function, letting you make searches for things like “manual transmission + two wheel drive + four cylinder engine” and gives you a variety of similar cars across different years and makes.  To buy used cars from AutoTrader go to www.autotrader.com

auto tempest7. AutoTempest

It’s great because it allows you to shop all the major used car sites at once. It’s like those cross-shopping flight search sites, but for cars. To buy used cars from AutoTempest go to AutoTempest.com

carfax logo6. Carfax

Most buyers don’t realize that Carfax has a rather robust used car listing filled with great inventory, much of it wholesale. This is because many dealers have opted to pay flat rate for Carfax and they allow the cars to show up as an additional service. You get the added bonus of a free Carfax report, cool huh? To buy used cars from Carfax, go to www.carfax.com/cars-for-sale

kijiji5. (Canada Only) kijiji.ca

Even if you live in the US there are ways to get cars across the border, so I threw this one in for our US dealers. Canadian dealers have been using Kijiji.ca for years. Great cars for sale and a good user interface makes it like Craigslist but better. It’s also owned by eBay. By the way Kijiji means “village” in Swahili. To buy used cars from KiJiJi go to www.kijiji.ca

4. Auction Simplified

I also recommend our own wholesale marketplace, Auction Simplified (shameless plug) because it is free for sellers to use and the buy fee is so small. It offers a turnkey “Make and Offer” style buy center that feeds from their existing inventory software. More and more dealers are using the platform to buy and sell used cars.  Go to AuctionSimplified.com and register.

Cars.com-Logo3. Cars.com

Similar to Autotrader but with less of the commercialism, cars.com is great especially on their mobile app. Cars.com has a clear user interface and  a great search function. Because of their lower cost as compared to AT they attract more independent car dealers and small used car lots, so they will often have almost all the cars in a particular town listed. They also allow for national search which is really helpful when looking for a bargain if you are not afraid to travel. To buy used cars from Cars go to www.cars.com

eBay-Motors-Logo-no-border2. Ebay motors

It harder to find a great deal yourself because of the national exposure, but eBay Motors is generally more reliable and easier to deal with than Craigslist. It’s also good when you already know what you want, and if you’re looking for something very specific. To buy used cars from eBay, go to www.eBaymotors.com

Use a robot bidding tool like bidnapper.com as it can really make a difference in winning the bid because it bids hyper fast on your behalf at the end.
Kevin Leigh, Dealer Simplified
Kevin Leigh

craigslist-logo-transparent1. CraigsList

You get some weird crap thrown in, so be careful not to surf craigslist while kids are around, but nothing can beat Craigslist when it comes to local listings. The search function is not the most specific, alright it actually stinks, but their are mobile apps that make things a lot easier. To buy used cars from Craigs List, go to www.craigslist.com

The trick with CL is to looks a lot further down the page, because you may not realize that it is actually a chronological list and sometimes the honey is at the bottom of the pot.
Kevin Leigh, Dealer Simplified
Kevin Leigh

UPDATE 8.12.14:

Dealer Auction SoftwareNow that Auction Simplified has launched, we also recommend our software (shameless plug) for Dealers to find, buy or sell wholesale cars. Go to AuctionSimplified.com and register.

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Car Auction Retail Car Lot

With VDP’s A Photo is worth a 1,000 words.

photo-nophoto
Your Car is Dead in the Water if you don’t have photos

Your Dealer Website is a Photo Visual Experience

When it comes to selling cars online, quality photos are the highest return actively I can think of. Would you use a dating website if there were no photos, I think not? Think about it, a web site by its nature is a visual experience, so if you have no visuals of the car, you are quite literally dead in the water.

How Many Photo’s is too Many?

Today customers expect photos and lots of them. Now you can see some dealers adding 50 or 60 photos to their online showroom. While that may seam like a lot and it is, some cars need that many pics to off show all the options. Your customers may not look at all of them but for the few extra minutes it will take you why not have them there.  At a bare minimum, I recommend 15  as this will allow you to show off most features but if you want to truly represent the car you will need 24-30 because it will give your customer a good virtual tour of the car.

Use a Photo Template for Your Photographers.

Along with the number of photos you take,  having a consistent look is important. Start by putting together a templet showing how you want the layout to flow. First photo, second photo, third photo… It’s all most like building a burger at a fast food restaurant, step one is… step two is… and so on.

Don’t Skimp on the Camera.

Now that you have picked the layout the next thing to do is get a good digital camera. There are hundreds of cameras to choose from, make sure you get one that lets you change the pixels, a common size is 1024×768. While you don’t need a $3000 Nikon -, I would tell you to get a better than average one. Remember you are going to take a lot of pictures with it and you don’t want to be buying a cheap camera every month. Plus the photos that come from a good camera look a whole lot nicer. We use a Nikon COOLPIX L810 16.1 MP Digital Camera with 26x Zoom , at the $170 price point, has all the features and durability without a huge learning curve.

Shop Your Site as if You are a Customer.

As you can see from looking at other dealers websites everyone has found some kind of flow or process to add photos to their cars. A best practice is to have someone in the dealership look at the website each day just like the customers do. Remember this is your digital showroom and it needs to stand tall. Bad photos, dirty cars, crumpled up white paper mats, other dealers plate frames are all little things that can drive customers away. You would never put cars like that inside the building where 20 people a day will see it, why would you want them online where 20,000 will see them.

Best Practice, a Photo Booth.

Taking good photos of the cars you intend to sell will increase your leads and keep customers coming back to your website. Keep your photo area or booth clean and free from clutter, set up good lighting and use a proper camera. Remember the car is the star, have it fill the frame and take your time.

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.

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Business Development Retail Car Lot

Top 10 Tips to Encourage Employees to Utilize the CRM

It’s Sad, I Know, But Your Average CRM Utilization is:

28%

Getting Your Team to Use Your CRM

Having a new customer relationship management system (CRM) won’t grow your business until you figure out how to get everyone to use it. Your CRM needs to be EASY and make sense for your manager and their team. CRM is probably one of the most valuable systems that any small business can implement. It is as important as the employees and will have a more significant long term effect than any one individual.

1. Don’t bombard users with features. 

Change is hard enough for most users, the manager does not need to spend a majority of the training class showing off feature after feature of the new system. Especially at the beginning, keep it EASY for the user. Display only the features the employees need to do their job. After the basics are understood by all employees, hold weekly meetings where you can show off additional benefits of the CRM.

The Easy CRM is not Bloatware2. Hide the Complex Features at First.

“Make sure your CRM is as simple as possible for what the employees need,” says Maggie our head of customer service, “If you think you need a full blown bloated CRM system with every feature possible, then plan on failure. Bloated CRM’s are almost always under utilized and under appreciated. Think about the phone system in your office, it probably has many great features, but most of your employees only use it to make calls.”

3. Make sure the owner uses the CRM, too. 

Nothing is more effective than when an employee knows the company owner is using the CRM, especially if they email questions to the employees about their utilization. Example: “I was looking in the CRM and did not see….’ Insert your ending here. When everyone uses it, it will become a trusted source.

CRM Trusted Source4. Make the CRM your trusted source of information?

Companies that also use Outlook or other contact management software often find themselves torn between two systems. If you can find a CRM that does it all, like the EASY CRM consider using it as your only source of customer info and customer detail. Most great CRM’s integrate with Gmail and google contacts, the user will not have to worry about an inability to access information. All of the info will be at your fingertips when you are off site.

5. Make it fun (and competitive) and reward the use of the CRM. 

Turn it into a game–with leaderboards, rewards and public recognition. Use competitive nature to encourage use of the CRM. Spiff’s and incentives work great, especially during the install phase of the CRM.

6. Play up CRM benefits. 

We all love top 10 lists, you are reading one now! Consider creating a top 10 list for the features that are most valuable to the team. The CRM sales top 10 would be completely different than the Customer Service Team’s CRM top 10 list. Keep it simple, and focused on the things they will actually use.

Once everyone is using the CRM, then show top new features each week to highlight the parts they may not be using yet. If an employee asks for a feature, make sure to use their name in your feature list. “Nancy asked the other day how to log a hand written note mailed to a customer? That feature is found in the ….”

7. Involve everyone in the early CRM rollout process. 

Make sure that the system is simple to learn for new users, and that your users can easily teach themselves as they work. Make sure employees have the opportunity to tell you what features do and do not make sense. You do not want to change workflow and make things take more time than before the CRM was implemented.

8. Find out who Hates the CRM

Figure out why and fix it early. “Naysayers do more damage to a CRM rollout than a power outage” says Kevin in CRM development. “Find the haters, help them, heal them and make them your evangelists.“

How to find them? The site Switch & Shift says, “They [users] will love the CRM or hate it based on its functionality. Let’s assume that your CRM is easy to use and provides them with essential information – a big assumption, but work with me. No matter how cool the functionality of your CRM system, your people may still hate it. Here’s why.

If your people love your CRM, it’s because it makes their jobs easier. If your people hate your CRM, it’s because you’re using it as a whip to ride them with.

It all comes down to this: do you look at your people as wayward children whose time and activity must be controlled tightly so they don’t slack off? Or do you see your employees as mature, responsible adults who are eager to do their work to the best of their abilities?”

CRM Is About Me9. It’s all about me

As a salesperson, the mentality will generally be “all about me”… that is what makes them good. If you didn’t take the time to involve them up front in the decision making process, why would you try to convince them now? After all, the salesperson will be the primary user of this new system. ‘Buy in’ occurs up front, not afterwards. If possible, try to rally your team to be onboard with the software before you even receive it.

10. Keep Training CRM

Driving CRM (or any software) adoption requires relentless and extended training. Training the CRM users once, having a few follow-up meetings and then having CRM fail, is an organizational execution failure, not a software failure.

Finally, have patience, give employees time, offer help.

“As leaders we all want to launch new procedures and policies, but it takes time for the average person to make them a habit. Be patient, be kind and be understanding. You are only truly successful with CRM implementation when the computer illiterate and the naysayers can use it to do their job. Just because they are not ‘computer savvy’ does not mean they cannot become CRM Savvy,” says Kevin.

TIP: Sales Buy-In is critical. In your sales meeting, ask for a CRM tip of the day. Spiff the person with the  $50. Then teach the whole team how to preform the tip. Or better yet ask the salesperson to demo his/her suggestion. ‘
Kevin Leigh, Dealer Simplified
Kevin Leigh

Categories
Retail Car Lot Wholesale Lot

Don’t Make Assumptions About Anyone, They All Deserve the Best From You.

“A man is great by deeds, not by birth.”  Chanakya −290BC

It was my first week working at my dad’s used car lot and I was 15 years old. It was the late 70’s and things were a little different. My father did not think twice about letting me drive one of his used cars to the corner to get coffee for him, without a license. We did not consider it unusual to spray paint cars in a wooden garage without a mask. It was an innocent time. Jimmy Carter was president, interest rates were 20% and being in the car business was hard.

don't prejudgeWe had just immigrated to the USA from Ireland and my dad started a small used car lot on a shoe string. Immigrants are the original “boot strappers,” because they usually cannot borrow money, yet they possess a ridiculous work ethic. To say we barely had a “pot-to-piss-in” was an understatement. I was the middle child of six and my parents had spent all of their money on a home and that used car lot.

You are thinking, “what has all of this to do with making assumptions?” well the answer is, everything. Because in that predicament I should not have assumed anything about anyone, but that is precisely what I did.

At the side of the garage, my father had a small camper that he used for his office. We were sitting in the “office” one early afternoon having lunch, when a man pulled into our lot driving a very old and rusted Chevrolet Pickup. My dad said, “Kevin, why don’t you go out and meet that man, lets see if you can sell him a car?”

I was horrified. At the time, I had never sold a car, I had never talked to a customer. My first reaction was to come up with any excuse in order to hide my inexperience.

“Dad, he can never buy a car, look at how he is dressed!” I said as we both looked out at the man, who was now opening the door of one of our used trucks. “He could never afford that.” The man was dressed in greasy coveralls with one shoulder strap missing, a torn and unwashed grey t-shirt and old steal toe boots with the metal exposed in the front from years of ware.

Without a word, my dad was on his feet, in ten long strides he was at the mans side shaking hands and smiling. Within minutes the hood of the truck was open and the man was looking at the motor. Every once in a while my dad would look back at me smirking. After the third look from him, I finished my lunch and went out to help.

My dad introduced me and then introduced the man. It turned out that he had just left his job site where his was building a strip mall. The man was so pleased with the progress from his construction crew, that he decided to buy his foreman a replacement truck. It was the foreman’s rusty truck he was driving. The man standing next to me was one of the wealthiest  commercial builders in Buffalo, but to my presumptuous young eye, he was poorer than us.

Years later, I still teach this lesson on assumption in my workshops and one-on-ones, because a common mistake of young inexperienced sales people, is the error of prejudgement. Even if a person is dressed poorly, has bad credit, and appears to be only shopping rather than buying, they should not be ignored. Every customer deserves your best efforts.

One of my earliest trainers was Grant Cardone, he discussed the 100% rule and I used it for the rest of my life. It goes something like this: Give 100% effort, sell the customer 100% of the time. Even if you don’t succeed that day, give 100% effort in getting the customer to come back.

Later when I became a finance manager I practiced the 100% approved rule. No matter what their credit rating I was always able to get the customer approved. If they were attempting to buy a $10,000 car, and the bank said no, I would repeatedly call the bank and ask how much money down it would take to get the person approved. In almost every situation, I was given 100% approval. In some cases they asked for $6000 down, but I learned it was better for the relationship with the customer never to say no, to always give hope. In the future that customer will remember how hard you worked for them, even when it seemed impossible to gain approval, and it will be you they return to when their credit score has improved or they have saved enough money to make a purchase.

I could talk about treating customers fairly and not making assumptions for hours, but for the sake of time, try this: Look into their eyes, not their cloths. In other words, treat everyone with utmost respect and they will buy from you like you are a natural.

Even after my father died, the man from the used car lot and his family still buy from me. I have lost count of the number we have collectively sold them over the years. He was my first customer and my first lesson in sales, which has forever shaped the way I sell for the better. You never know who a person is or when their situation may improve, someone with a poor credit score today, may be wealthy enough to buy a Mercedes tomorrow. Put prejudgments aside, and always give 100% effort.

Categories
Car Auction Retail Car Lot Wholesale Lot

How to Sell a Car with an Accident Showing on Carfax™

Carfax Accident Report

“I Just Ran the Carfax™ and it Shows an Accident, What Should I Do?”

Selling a car that has been in an accident can be challenging. If you are selling a car that is showing an accident on a Carfax or some other vehicle history report the first thing you should do is have your service department or body shop look over the car.

Carfax Accident ReportAre All Accidents Reported on Carfax?

Today most accidents are reported automatically by the police that reported to the scene and by the repair shops and insurance companies. It is by no means foolproof though, as many accidents are settled by the victim to keep it off the record.

Spotting Accidents:

Some accidents are harder to spot by just looking over the outside of the vehicle, you may need to put the car up on a lift to see any of the repairs. Accidents can vary from minor paintwork on one panel to full frame repairs. Carfax and other history report do there best to inform the public as much as they can about an accident but at the end of the day they can only report the information they receive.

Can You tell How Severe the Accident Is by Reading the Carfax?

No. In fact many times even a minor fender bender is reported as a full accident. That is why we recommend a full inspection.

How Do I Fix a Carfax?

From time to time you may need to ask Carfax for a data correction if the information showing is incorrect, that can take a few days but it’s good to be able to fix things before you offer a car for sale. It’s not hard to send in a data correction request to Carfax. You just go to http://support.carfax.com/c_datarequest  to get started then just follow the steps.

Best Practices:

1. Do everything you can to find out about the damage shown on the CarFax and once found be sure the repair has been preformed well. Knowing where the work was done or getting a copy of the repair estimate to show your buyer, will help build the customers confidence in the car.

2. If you are using a storybook to build value in your cars this is a good place to keep that information.

3. Always remember to offer the customer the opportunity to take the car to a third party mechanic or someone they trust to look the car over. This really shows that you stand behind every car you sell. It also gives your sales team the confidence to talk openly about cars with accidents.

Exotic Car Crash Accident Carfax)Do I Need to Adjust the Price when the Carfax™ Shows an Accident?

Pricing cars that have been in an accident can be tricky. It’s important to take the previous repair in to consideration when pricing cars for retail. Just as that same accident will affect a customer’s trade-in value it will influence the retail price you can ask.


Are High End Cars Effected Differently when the Carfax™ is Bad?

Keep in mind that some makes and models can be influenced greater by accidents like BMW or Mercedes-Benz. Having accidents on higher priced highline cars can affect their values by thousands of dollars  Buyers today have the same information that sellers have on what’s for sale in the market. Asking over market value for a car with an accident history will make it much harder for seller to move that car.

Offering cars for sale with accidents can be done without struggles if you are upfront with the buyer and offer to show a history report before they ask. Building value early is critical to making a buyer feel comfortable and will make the transaction go much smoother.   But even before that make sure you don’t offer cars that you’re not comfortable selling.