used cars in lebanon pa

5 Signs You Should Walk Away From An Independent Seller’s Used Cars Business

Are you on the fence about selling used cars? After careful consideration, I decided to do some research on the entire used car business. This article is meant to help you get over the wall and into the used car game.

Things are beginning to look up in the used car business. Interest rates have bottomed out, and thanks to the Wall Street Journal’s Commerce Department, the used car industry is well on its way to prosperity.

Even if you have a new car dealership in Detroit, selling used cars is still a great idea. Depending on the type of car you are dealing with, used cars in lebanon pa the margins could be bigger than you’re currently assuming. However, since you’re not doing the research, it’s time you learned a few key lessons about the used car business.

To help you get started, I’ve gathered five big reasons you should get out of the used car game.

Reason #1: The sales cycle

Most people think that most used car sales are from independent sellers like me. This is not the case. Most dealerships purchase car lots full of cars. Dealerships usually have at least two full lots of cars, usually near the dealer’s headquarters.

That’s why most dealerships buy stock vehicles.

Reason #2: Incentives

There are many manufacturers that offer incentives for using their dealership network.

Instead of purchasing a base model car at the dealership, you can go to your used car dealer and buy a new car with a few thousand dollars in incentives. Most of the incentive amounts are proportional to the cost of the vehicle.

But some manufacturers offer bigger incentives than others.

Reason #3: The road’s long and winding

The inventory for your used cars usually depends on three things:

The car’s current value in your inventory

The sales cycle for the car

The sales volume

In other words, the longer your sales cycle is, the more chance your inventory will stay at the same value.

used cars in lebanon pa

Reason #4: Inventory correction

Each dealer receives a piece of your car inventory. They can use it in the sense of brand building, or the dealer can use the inventory to provide price premiums on their vehicles.

Don’t be one of those dealers that hang onto your inventory longer than necessary. The longer your inventory of cars sits around, used cars in lebanon pa the higher the chance that you’ll have to buy them back.

Reason #5: National inventory

The inventory for used cars is huge. Dealerships usually have access to many national cars, with multiple variations of each one.

The bigger the dealership, the bigger their inventory. That’s why most dealerships are able to have two-to-five different versions of the same car on their lot at one time.