Dealer inventory sourcing has continued to give smaller dealers sleepless nights as they try to figure out how to remain competitive. Industry giants like CARMAX and CARVANA aren't allowing them to battle for their share. They keep boxing them out through better inventory sourcing strategies. However, smaller dealerships can outfox the giants. Implementing what we do and getting creative with used car inventory acquisition will give them an upper hand.
The New Strategy Giving Them an Edge Regarding Used Car Inventory
CARMAX and CARVANA have been massively successful in acquiring used cars from the for-sale-owner market. This is known as a private party acquisition. With this approach, they aren't sitting back and waiting for deals to come to them. They are proactively pursuing the inventory they need, and we are expanding their used car inventory through private channels. That is how they are able to find quality used vehicles for less cost and outsell the competition.
The Untapped Inventory
What CARMAX and CARVANA realized is that there are millions of private seller cars sold yearly. And they didn't hesitate to get the most out of this opportunity. Recent statistics show they are now competing on America's driveways and online platforms to acquire vehicles directly from the sellers, and it is paying off very well. For example, vehicles bought from customers were up 231% year-over-year in 2019 at CARVANA. But what can independent dealers do to reclaim access to their shares of quality vehicles? What are other dealers doing to combat giant dealers' trends?
Secret Weapon for Independent Dealers
By getting smart with their acquisition strategies small dealers too can still find high-quality cars that will sell fast. Here are some of the strategies they can implement to compete with industry giants.
Private Party Acquisition
Private party acquisition has been tried and tested. It is working for the industry giants. It can work for you as small dealers if you use the right acquisition tactics. Some of these tactics include:
Reach out via text: statistics show that around 66% of clients prefer to engage via text compared to phone calls and emails. As such, make sure to follow your leads with personalized messages.
Leverage real-time market data valuations: such data helps you give your prospects the most accurate quote possible while also leaving you in control of the final price.
Design a dedicated landing page for acquisition: that way, you make it easier for customers interested in trading in or selling their vehicles to find the information they need.
Use social media to boost lead generation: social media makes it easier to proactively target sellers. Instead of waiting for them to come to you, target those in your areas, for example, using custom ads encouraging them to bring their vehicles.
Dealer sourcing isn't an easy task and especially in an era where big players in the industry tend to bully the smaller entities. However, by getting creative in their used car inventory acquisition and using the right tools, smaller dealerships can find high-quality used cars that will sell fast. VETTX is one of the most efficient tools that will help your dealership reclaim its position. Use it to get used vehicles from the for-sale-by-owner market. Feel free to contact us for more information.