he auto industry has been experiencing some unprecedented changes in the market since the beginning of 2020. Most notably, market demand has shifted to pre-owned vehicles over brand-new vehicles, and it doesn't appear that this trend will start to slow down anytime soon.
In fact, the effects of the global chip shortage are predicted to last well into 2022, which means that now it's more important than ever for dealerships to diversify and optimize their used car acquisition methods. As used car prices skyrocket to record highs to meet consumer demand, it's becoming vital for dealerships to streamline their inventory strategy if they want to maintain a competitive position in today's market and keep the profits rolling in. So what does this all mean for the future of used car acquisition?
Leveraging the Private Party Market is the Future of Used Car Acquisition
While the demand for used cars continues to rise, the market prices are skyrocketing right along with them. This increase in demand is doubly strained under the shortage we are experiencing for the overall supply of used cars. In short, more and more consumers are opting for pre-owned vehicles, and it's becoming a bigger challenge to keep up inventory fast enough to match this market trend — at least through traditional acquisition methods.
Traditionally, used car acquisition methods such as vehicle trade-ins or auto auctions are proving to be less effective, less reliable, and more time-consuming than they're worth with the current uptick in demand for pre-owned vehicles. But this doesn't mean you have v to keep playing a losing game — you just need a more efficient strategy.
Purchasing used cars from the private party market is increasing in popularity. It's becoming more and more apparent that this acquisition method is the way forward for dealerships. Private party acquisition can help dealers pick through a wider variety of vehicles, increase profit margins, boost inventory turnover, and even increase your clientele all at the same time.
Scaling Your Dealership's Efforts to Maintain a Competitive Edge
While private party acquisition comes with a lot of benefits, many smaller dealerships are understandably concerned with how they can execute this method at scale to compete with some of the bigger companies on the market. It's true — if you're working with a smaller team or you're otherwise strapped for resources, sorting through the vast number of private party listings and navigating all of those sales individually can eat up a lot of your time.
Fortunately, with a service like VETTX, much of that time-consuming work is taken care of for you. By using our streamlined software, you can search through pre-vetted used cars for sale by owner with ease, making it quick and simple to find the best matches for your inventory. It's never been easier to leverage the private party market for your used car acquisition strategy so that you can allocate your valuable time and resources to focus on turning over your inventory faster and increasing your profits.
VETTX Can Help You Find More Used Vehicles
Our dedicated team is standing by to answer your questions or schedule a demo for you. Let us help you jumpstart your acquisition efforts and support your inventory strategy. Contact us today!