3 Ways to Increase Pre-Owned Sales Profitability

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3 Ways to Increase Your Pre-Owned Car Sales Profitability Improving your dealership's pre-owned car sales profitability requires understanding a few key facts on what's happening to used car sales and profit margin across the country. According to NADA's annual Dealership Financial Profile reports, in 2010, the average dealer sold 528 used vehicles. In 2015, they sold 677. In 2019, it was 735. Dealers are also selling used cars for more money: According to NADA, the average sale price of a used car increased 21% over the past decade, from $16,480 in 2010 to $21,103 today. However, even with more cars being sold and transaction prices steadily increasing, dealer profit on used cars has remained relatively flat. Between 2010 and today, the average gross profit on a used car only grew 6%, from $2,236 to $2,374. In this whitepaper, we discuss three ways to increase your pre-owned sales profitability and reduce overhead costs by unlocking new sales opportunities, including: • Centralizing your customer and inventory data • Simplifying your marketing and sales process • Focusing on improving net profits Centralize Your Data COVID-19 disruptions are driving changes in consumer buying habits with the combination of economic uncertainty and new vehicle supply disruptions pushing many shoppers to consider pre-owned options in their next purchase cycle. By mapping your pre-owned and new vehicle inventories from the same platform, you're able to efficiently match customers to the vehicle they're most likely to purchase, new or used. Price isn't the only factor driving purchasing decisions. Ensure your dealership's customer insights can also be collected and analyzed in a single environment by integrating data from your CMS and DMS so you can tailor your customer outreach. 32 If dealers are selling 39% more used cars than they were a decade ago and the average transaction price is up 21% but profits are not keeping pace, then what can dealers do to reverse the trend? 64% OF BUYERS SAID THEY WOULD CONSIDER PRE-OWNED OPTIONS WHILE SHOPPING FOR A VEHICLE Cox Automotive, 2019 Car Buyer Journey

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