Digital Dealer - June 2018 - 20
PreOwned
By Dale Pollak
Founder,
vAuto
A Metric That
Merits More
Attention-
Your Used/New
Sales Ratio
When I was a dealer,
we thought we were
doing a pretty good job if
we managed a .5:1
used-to-new-vehicle
sales ratio.
If we retailed 50 new
Cadillacs a month, I
expected that we would
also sell 25 used units,
which were almost al-
ways Cadillacs.
A recent Automotive
News piece suggests
that, since I was a dealer
20 years ago, the used-to-
new vehicle sales ratio for
many dealers hasn't significantly changed-despite my sense that most
dealers express a clear
desire to retail more used
vehicles to offset growing
margin compression in
their variable operations.
So, what gives? Why
haven't dealers been able
to make more significant
gains in used vehicles?
Which known/unknown
factors might be holding
them back?
These are the questions that came to mind
while reading the Automotive News article. It
focused on the used-tonew-vehicle ratios among
its top 100 dealership
groups. Less than 20
groups-18, to be exact-
achieved a 1:1 used-tonew ratio and, among
those, only nine achieved
SUCH PERFORMANCE LEVELS
HELP YOU LIGHT UP WHAT I'VE LONG
CALLED THE 'WHEEL OF FORTUNE' IN
YOUR DEALERSHIP..."
a 1:25:1 ratio.
My Cox Automotive
colleague Les Abrams
shares my view that,
for today's dealers and
margin-compressed market, a 1:1 ratio suggests
you're doing a good job,
and a 1:25:1 (or better)
ratio indicates a great job.
Such performance levels
help you light up what I've
long called the "wheel of
fortune" in your dealership-the gross profit opportunity every retail used
vehicle sale represents for
your service/parts department, your F&I office, your
used car department and,
yes, for your new vehicle
20
JUNE 2018
D I G I TA L D E A L E R . C O M
http://www.DIGITALDEALER.COM
Table of Contents for the Digital Edition of Digital Dealer - June 2018
Digital Dealer - June 2018
Contents
Letter from the Show Director
The Power of Bear’s a “Little Bit Extra”
Sustained Legacy for Greatness - So Many Layers of Benefits to Be Derived
Innovate & Adapt
Subscribe & Drive
A Little Preventive Maintenance Goes a Long Way in Protecting Your Franchise Investment
A Metric That Merits More Attention— Your Used/New Sales Ratio
The Law of Attraction
How to Tailor the Brand Experience for the Decision Maker
The Power of Internal Marketing!
Andrew Walser Walser Automotive Group
The Perfect Dealership: Mastering the Basics
Wanna Hurt or Maim Someone? Use Their Vehicle!
Fixed Ops BFF
Broken Links Lead to Broken Relationships
5 Ways to Immediately Improve Your Social Media Strategy
Don’t Be Shy – The Tough Questions You Should Be Asking Vendors
4 Ways F&I Managers Can Win Over the Sales Team
The Consultative Approach to Selling
Digital Dealer - June 2018 - CT1
Digital Dealer - June 2018 - CT2
Digital Dealer - June 2018 - Digital Dealer - June 2018
Digital Dealer - June 2018 - Cover2
Digital Dealer - June 2018 - 1
Digital Dealer - June 2018 - Contents
Digital Dealer - June 2018 - 3
Digital Dealer - June 2018 - Letter from the Show Director
Digital Dealer - June 2018 - 5
Digital Dealer - June 2018 - The Power of Bear’s a “Little Bit Extra”
Digital Dealer - June 2018 - 7
Digital Dealer - June 2018 - Sustained Legacy for Greatness - So Many Layers of Benefits to Be Derived
Digital Dealer - June 2018 - 9
Digital Dealer - June 2018 - 10
Digital Dealer - June 2018 - 11
Digital Dealer - June 2018 - Innovate & Adapt
Digital Dealer - June 2018 - 13
Digital Dealer - June 2018 - 14
Digital Dealer - June 2018 - 15
Digital Dealer - June 2018 - Subscribe & Drive
Digital Dealer - June 2018 - 17
Digital Dealer - June 2018 - A Little Preventive Maintenance Goes a Long Way in Protecting Your Franchise Investment
Digital Dealer - June 2018 - 19
Digital Dealer - June 2018 - A Metric That Merits More Attention— Your Used/New Sales Ratio
Digital Dealer - June 2018 - 21
Digital Dealer - June 2018 - The Law of Attraction
Digital Dealer - June 2018 - 23
Digital Dealer - June 2018 - How to Tailor the Brand Experience for the Decision Maker
Digital Dealer - June 2018 - 25
Digital Dealer - June 2018 - The Power of Internal Marketing!
Digital Dealer - June 2018 - 27
Digital Dealer - June 2018 - Andrew Walser Walser Automotive Group
Digital Dealer - June 2018 - 29
Digital Dealer - June 2018 - 30
Digital Dealer - June 2018 - 31
Digital Dealer - June 2018 - 32
Digital Dealer - June 2018 - 33
Digital Dealer - June 2018 - The Perfect Dealership: Mastering the Basics
Digital Dealer - June 2018 - 35
Digital Dealer - June 2018 - Wanna Hurt or Maim Someone? Use Their Vehicle!
Digital Dealer - June 2018 - 37
Digital Dealer - June 2018 - Fixed Ops BFF
Digital Dealer - June 2018 - 39
Digital Dealer - June 2018 - Broken Links Lead to Broken Relationships
Digital Dealer - June 2018 - 41
Digital Dealer - June 2018 - 5 Ways to Immediately Improve Your Social Media Strategy
Digital Dealer - June 2018 - 43
Digital Dealer - June 2018 - Don’t Be Shy – The Tough Questions You Should Be Asking Vendors
Digital Dealer - June 2018 - 45
Digital Dealer - June 2018 - 4 Ways F&I Managers Can Win Over the Sales Team
Digital Dealer - June 2018 - 47
Digital Dealer - June 2018 - The Consultative Approach to Selling
Digital Dealer - June 2018 - Cover3
Digital Dealer - June 2018 - Cover4
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