MORE PROFIT,
NOT JUST MORE SALES
In 2019, the average gross profit for a used car sold by a
new-vehicle franchise dealer was $2,374.
The average net profit was just $14.
Per-vehicle profitability is critical for used and CPO sales. But with increasingly price-
sensitive consumers having unprecedented price visibility thanks to the Internet,
improving front-end profitability means decreasing back-end costs.
Smart acquisition and reconditioning matter as always, especially in a market flooded
with defleeted vehicles and lease turn-ins. But the most critical profit components
you can control on a day-to-day basis are your inventory turnover and your cost of
customer acquisition.
How? Make your inventory turnover healthier and more sustainable by identifying and
targeting quality in-market customers and closing those sales more quickly than before
through predictive data analytics. Make those customers more profitable by decreasing
the cost of the marketing and sales process through personalized marketing.
