Revel in the Refunds
These next few months are critical to every used car dealers’ business. Tax refund season can make or break your year. The dealers that capitalize on the influx of disposable income can ride that wave of success for the rest of the year. Meanwhile, those who don’t are left scrambling to make up the difference in the more challenging months ahead.
How do you ensure you get the most feet pounding the pavement on your lot these next couple months? Here are a few tips that can help you make it happen.
Focus on Millennials: This younger generation holds the lion’s share of the country’s disposable income. In fact, according to Forbes Magazine, about 80 million Millennials hold approximately $200 billion in purchasing power. To get Millennials on your lot, it requires implementing technology into your process and nurturing leads from the web. This generation knows what car they want before they even pick up the phone or drive to your lot. Make sure your web presence – and its mobile counterpart – have all the information Millennials need to make a purchase decision.
Stick to the fundamentals: Any industry vet knows how to sell cars. You can probably do it with your eyes closed. So don’t put any added pressure on yourself during tax refund season. Use tactics like online and print advertising of Certified programs to get shoppers on your lot, and then create a customer-friendly experience once they are there. If you already have a solid process in place at your dealership, there’s no need to alter it just because you’re facing an influx of car shoppers.
Build the right inventory: The key here is to be selective and be analytical. Do your research of market trends and see what vehicles are hot this year. Keep an eye on cost-to-market margins so you know how much you can profit from a vehicle after reconditioning and acquisition costs. And utilize back-end products like vehicle service contracts to make up the difference on units with tighter margins.
Stand out from the competition: This time of year, more than any other, you will need to make sure you can differentiate your lot from the rest. Things like mobile technology in your sales and F&I processes and point of sale materials on your lot and website can help drive more traffic to your lot during this busy time of year.