Digital Dealer - August 2019 - 14

Road Trip to DD27 | AUG 19-21, 2019 | Las Vegas

DD27

D E A L E R O PS & M A NAGEM ENT: Pr e - Own e d

The Customer Buy
Center: A Better
Way to Build
Inventory
The used car market is
ripe for dealers: Vehicle
prices are rising, demand is
growing, and days on the
lot is dropping. According to
Edmunds Q1 2019 Used
Vehicle Report, pre-owned
vehicle prices have
increased by 17.4 percent
in the last five years, now
surpassing $20,000 per
used vehicle. Compare that
to the average new car
price of $36,000, used cars
represent a significant
savings for customers.
Monthly payments on used

14

AUGUST 2019

cars are 31 percent lower
than new, according to
Jonathan Banks of J.D.
Power. And with low miles,
late-model vehicles, and
additional features/options,
buying used no longer
represents a compromise
over buying new.
Used cars are also

consistently more profitable.
With more margin to be
gained, dealers are looking
for ways to increase their
used car inventory. Savvy
dealers are striving to get
closer to a 1:1 used car to
new car ratio. NADA data
shows the 2018 average is
.80 used cars to new. Lux-

IF THE SOURCED
VEHICLES AREN'T A GOOD
FIT OR SIT ON YOUR LOT
FOR 25 DAYS, THEN SEND
THEM TO AUCTION."

D I G I TA L D E A L E R . C O M

FEATURED SPEAKER
By Tim Scoutelas
Director of Strategic Accounts,
MAX Digital

ury brands show the highest
ratio at .90 used to new- a
clear shift from .68 in 2014.
It's evident that dealers
need to source more used
inventory, the question is,
how?
BUILDING INVENTORY

Dealers continue to head
to the auctions, week in
and week out, spending far
too much time and effort
on acquiring vehicles. The
fact of the matter is, going
to auctions may not be your
best bet. When you factor in
auction fees, transportation
costs, plus bidding against
other dealers, vehicles
sourced from auctions leave
little to no margin.
The consumer-sourced
trade in comparison is the
most profitable source of
inventory for dealerships
and can be a driving force
for overall success in today's
digital environment.
So, how can you capture
more consumer sourced
trades? Consider a customer buying center. A buy center is a cost-effective way to
acquire the highest-grossing
and fastest-turning inventory,
while driving local traffic to
your dealership. It builds the
customer relationship for the
future. As an added benefit,
you know these vehicles
better - with the full vehicle
history straight from the consumer and the opportunity to
inspect it yourself. That's a
win all around.
Carvana was quoted in
Automotive News as saying,
customer-sourced cars can
generate an average of
$500-1000 more profit per
unit than those acquired at
auction. We agree and see


http://www.DIGITALDEALER.COM

Digital Dealer - August 2019

Table of Contents for the Digital Edition of Digital Dealer - August 2019

Digital Dealer - August 2019
A Message from the Show Director
Generational Leadership
Leasing Is Now - Know the Maintenance Requirements or Else
What You Don't Know Can and Will Hurt You
The Customer Buy Center: A Better Way to Build Inventory
Level Up: Drive a Better Clicks-to-Bricks Connection
Interview with Titus-Will Toyota
Inside Digital Dealer 27
Reaching for High-Star Ratings
You Keep Talking, But Are Your Customers Listening?
16 Ways to Damage Your Professional Brand & Fail at Social Selling
Why Public Relations Is Essential for Your Dealership
Using Facebook to Jumpstart Your Loyalty and Retention Programs
‘Medium and Message’ Magic!
3 Simple Ways to Communicate Better with Your Customers and Increase Sales
The Push for Increased Fuel Economy Continues: How Can Fixed Ops Contribute?
Digital Dealer - August 2019 - Digital Dealer - August 2019
Digital Dealer - August 2019 - Cover2
Digital Dealer - August 2019 - 1
Digital Dealer - August 2019 - 2
Digital Dealer - August 2019 - 3
Digital Dealer - August 2019 - A Message from the Show Director
Digital Dealer - August 2019 - 5
Digital Dealer - August 2019 - Generational Leadership
Digital Dealer - August 2019 - 7
Digital Dealer - August 2019 - Leasing Is Now - Know the Maintenance Requirements or Else
Digital Dealer - August 2019 - 9
Digital Dealer - August 2019 - What You Don't Know Can and Will Hurt You
Digital Dealer - August 2019 - 11
Digital Dealer - August 2019 - 12
Digital Dealer - August 2019 - 13
Digital Dealer - August 2019 - The Customer Buy Center: A Better Way to Build Inventory
Digital Dealer - August 2019 - 15
Digital Dealer - August 2019 - Level Up: Drive a Better Clicks-to-Bricks Connection
Digital Dealer - August 2019 - 17
Digital Dealer - August 2019 - Interview with Titus-Will Toyota
Digital Dealer - August 2019 - 19
Digital Dealer - August 2019 - 20
Digital Dealer - August 2019 - 21
Digital Dealer - August 2019 - 22
Digital Dealer - August 2019 - 23
Digital Dealer - August 2019 - 24
Digital Dealer - August 2019 - 25
Digital Dealer - August 2019 - Inside Digital Dealer 27
Digital Dealer - August 2019 - 27
Digital Dealer - August 2019 - 28
Digital Dealer - August 2019 - 29
Digital Dealer - August 2019 - Reaching for High-Star Ratings
Digital Dealer - August 2019 - 31
Digital Dealer - August 2019 - You Keep Talking, But Are Your Customers Listening?
Digital Dealer - August 2019 - 33
Digital Dealer - August 2019 - 16 Ways to Damage Your Professional Brand & Fail at Social Selling
Digital Dealer - August 2019 - 35
Digital Dealer - August 2019 - Why Public Relations Is Essential for Your Dealership
Digital Dealer - August 2019 - 37
Digital Dealer - August 2019 - Using Facebook to Jumpstart Your Loyalty and Retention Programs
Digital Dealer - August 2019 - 39
Digital Dealer - August 2019 - ‘Medium and Message’ Magic!
Digital Dealer - August 2019 - 41
Digital Dealer - August 2019 - 3 Simple Ways to Communicate Better with Your Customers and Increase Sales
Digital Dealer - August 2019 - 43
Digital Dealer - August 2019 - 44
Digital Dealer - August 2019 - 45
Digital Dealer - August 2019 - The Push for Increased Fuel Economy Continues: How Can Fixed Ops Contribute?
Digital Dealer - August 2019 - 47
Digital Dealer - August 2019 - 48
Digital Dealer - August 2019 - Cover3
Digital Dealer - August 2019 - Cover4
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