The automotive industry is feeling the effects of a nationwide shortage that began last year. The computer chip shortages have caused significant delays in production for cars, trucks and other vehicles being produced by auto manufacturers which means there’s less options available on Used Cars Lots today than ever before! While the shortage is expected to end within the next year, businesses are looking for ways to cope with it in the meantime.
One way that used car lot owners can mitigate the effects of the chip shortage is by increasing their stock of pre-owned cars. To stay ahead in this ever-changing market, it’s crucial for car dealerships like yours to have a reliable vehicle acquisition strategy in place.
Today we will be looking at The Top 5 Ways Dealerships Can Increase Their Pre-Owned Inventory.
5. AutoTrader and Kijiji Autos
If you’re looking to increase your pre-owned inventory, Autotrader and Kijiji are both great platforms to explore. Autotrader is one of the largest online marketplaces for buying and selling cars, so it’s a great place to find potential sellers. Kijiji is also a popular online classifieds site and is a great resource for finding local sellers.
Both sites offer a wide range of features and options that can be customized to your needs. However, keep in mind that both can be quite time-consuming, and you may not always get replies from potential sellers. But if you’re patient and willing to put in the work, using these sites can help you build up your inventory.
The Facebook Marketplace is a great place to find used cars from private sellers. You can find specific makes and models or browse by category and filter for vehicles within your price range. Additionally, you can contact the seller directly to ask questions about the car or arrange a meeting.
However, you should be cautious when buying from private sellers because there is always the potential for scams such as rolled-back mileage. It is also important to remember that private sellers are not obligated to disclose any vehicle information, so do your due diligence before purchasing.
TradeRev is an online vehicle auction platform that allows Canadian automotive dealerships to bid on used cars in real-time. It’s one of the most popular options for many, as it gives them more flexibility and control over the inventory they’re interested in. Dealers can bid on desired vehicles and get rid of unwanted stock. TradeRev also doesn’t have any long-term contracts so that dealerships can use the platform on an as-needed basis.
This provides an excellent opportunity for dealerships to get the vehicles they need at a price that fits their budget. In addition, the platform offers a wide variety of cars so you can find the perfect match for your inventory needs. TradeRev can be a great way to quickly get your hands on pre-owned vehicles at a lower cost.
However, it is important to note that the TradeRev auction process can be very time-consuming. In addition, the bidding can often get very heated, and the transportation of the vehicles you purchase can add to the overall cost, leaving smaller profit margins.
2. Google Ads
A better solution for dealerships looking to increase their pre-owned inventory is to focus on marketing and selling the vehicles they already have on their lot. By using creative marketing techniques and employing a thorough sales process, dealerships can move more units and improve their bottom line.
The platform allows you to create ad campaigns specifically tailored to your dealership’s needs and budget. You can also target potential customers based on their location, so you’re only paying for ads relevant to your area. Google Ads can be a great way to attract new customers and grow your business. In addition, tools like Google Analytics provides detailed reporting so you can track your campaign performance and ROI and make necessary adjustments.
With Google Ads, dealerships can access potential clients at a reasonable cost. However, to ensure that your ads are successful, it is essential to set them up correctly and monitor your campaign performance daily. Keep in mind that the platform offers a variety of features and options, so if you are new to Google Ads, it is best to consult an expert to get the most out of your investment.
1. Facebook Ads
The Facebook Vehicle Acquisition Campaigns is our number-one recommendation for many reasons. It is a great way to increase your pre-owned inventory, but it’s also a great way to attract new customers. Seventy-Eight percent of Canadians use at least one Meta platform every day, with Facebook being the most popular.
The trade-in campaigns allow you to reach out to a vast audience of potential customers who might not be aware of your dealership. In addition, it will enable you to target a specific audience based on their interests and demographics, social status etc. This can help ensure that your ad reaches the right people, leading to more conversions.
The Facebook Acquisition Campaign is a great way to increase your pre-owned inventory quickly and efficiently and is very affordable, making it an excellent option for dealerships on a tight budget.
If you’re looking to increase your pre-owned inventory, Facebook Ads is the clear winner.
Ultimately, the best way for a dealership to increase its pre-owned inventory is to focus on selling the vehicles it already has. By using creative marketing techniques, employing a thorough sales process, and offering competitive pricing and financing options, dealerships can move more units and free up space for new inventory.