Service Drive Pre-Owned Acquisitions Cheat Sheet

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Service Drive Pre-Owned Acquisitions Cheat Sheet As ongoing chip shortages fuel inventory shortages, consumer demand for both new and pre-owned vehicles has risen. At the same time, both the lingering effects of the pandemic and the ongoing shortages have driven the average age of light vehicles in production in the U.S. to new highs. With an aging fleet fueling additional service visits and rising pre-owned values prompting more customers to consider trading up, dealers have a prime opportunity to acquire in-demand trades while flipping their existing inventory in their service drive. But with service customers typically not yet in-market and dealership loyalty at an all-time low, its critical dealers get ahead of their customers and the competition to profitably acquire in-demand makes and models. GET STARTED WITH THESE CONSIDERATIONS: Determine Your Best Opportunities From different volumes of inventory and unique customer bases to certain OEM requirements and more, every team has its own set of challenges to consider when developing a service acquisition strategy. To determine the best acquisition opportunities for your market coming through your service drive, consider: � Which vehicles have sold the best – and the gross of those sales – over the last 30-90 days � Incoming deliveries against available inventory on-hand, accounting for any delivery delays � Incoming buybacks and customer trades � Incentivizing your service team to acquire in-demand acquisitions – and how this will be communicated to your service and sales teams IHS Markit, June 2021 The average age of light vehicles in production has risen to 12.1 years, increasing by nearly two months in 2020 due to the pandemic.

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