Learn how they were able to add over $4.5 Million in gross and added over a 1,000 vehicles to their used car departments bottom line with VETTX.
McGovern Auto group is located mainly in the New England area with a total of 15 stores. McGovern Auto group is one of the largest auto groups in their part of the country, with the largest private party vehicle acquisition operation. We spoke with Tom Kilgarriff, the Pre-owned Director for the McGovern Auto Group.
McGovern didn't know where to start, they knew they needed to be pursuing private party leads and didn't know how they were going to do it successfully without having to hire an army. Before VETTX the only private party cars they were buying were ones that came to them.
When leads did come in there was no organization. They didn’t know if they should integrate them into their main CRM or keep them separate. Many of them eventually ended up falling through the cracks.
On top of that there was growing competition at the auctions. Prices were becoming too high for their taste as well as all the fees that are associated. Also, when they did buy a car, they would get a “cookie cutter” car according to Kilgarriff. The cars also weren't the most cleanly he has seen. They would have to spend time being reconditioned. And when you add all the up, the Increasing prices, the little-to-none variety, and the high recon, you can expect why Tom and team were not satisfied.
““It's safe to say that these cars gross more on the front end than cars that come from most other sources, certainly the auction. In terms of turnaround time, these cars turn more quickly on average, than cars that we get from other sources.”
When Tom first signed on with VETTX he was a one man band. Once he started to understand the potential of this tool and started putting dedicated employees to the platform, they started putting up some impressive numbers. Today, they continue to buy upwards of 30 cars per month. One reason they are doing so well on the platform is the fact that their team is committed to this acquisition strategy. They are going all in, even hiring a whole fleet of drivers that appraise, and pick up cars across multiple states.
In this game, good organization is critical. As Tom said, sometimes these sellers aren't ready to sell right away. They might need a week or two to finally come down on their asking price. Without diligent notes and organization that lead slips away. But with VETTX when that lead comes back they know exactly what was offered, when they offered, and any and all additional notes particular to that seller. With this method Tom and team is able to absorb so many vehicles that most dealers would not.
Tom also mentioned that they can communicate better within the platform. He and his team can be on the same page as far as what cars they want, don't want, or need and what they are willing to offer to each seller.
A Lot of these sellers actually turn into buyers. The ones that really enjoyed selling their vehicle to us, will come back when looking for their next vehicle. “We’ve also seen people sell their car to us, and then refer their friends or family to us to sell their vehicle or buy one of ours.
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