Whitepapers

4-Step Guide to Acquiring the Best Pre-Owned Inventory Amid Chip Shortages

Issue link: https://resources.automotivemastermind.com/i/1373221

Contents of this Issue

Navigation

Page 0 of 1

4-Step Guide to Acquiring the Best Pre-Owned Inventory Amid Chip Shortages As chip shortages slow production for most brands, new vehicle inventories at dealerships around the country are reaching historic lows. Meanwhile, customers are returning to market, driving demand and boosting already high sales prices even higher. While for some dealers this can translate into exceptionally high profits in the short term, IHS Markit estimates this shortage will persist in the auto industry until at least 2022. Looking ahead, it's critical dealers take control of their future success and re-evaluate how they approach stocking their inventory – mainly how they acquire in-demand used vehicles. 1. Leverage Trade & Buy-Back Opportunities With retail acquisitions typically generating less overhead than auction – plus the added opportunity to make a sale – buy-backs and trades are key to maximizing pre-owned profitability. Dealers who can identify and engage drivers of in-demand vehicles in their market have a significant advantage over the competition. Leverage data from your dealership DMS and CRM to identify prospective trade opportunities, such as in your upcoming service appointments. Look for indicators like: • Out of warranty • Over lease mileage • New product design • Payment decrease opportunity • Desired used car lot product An estimated 1.3 million fewer light vehicles were produced in the first quarter of 2021 because of semiconductor shortages. IHS Markit, March 2021

Articles in this issue

view archives of Whitepapers - 4-Step Guide to Acquiring the Best Pre-Owned Inventory Amid Chip Shortages