Why Buying Vehicles Private Party Means Higher Profit Margins
March 17, 2021
With 2020 in the rearview mirror, 2021 looks promising when it comes to car sales. Some estimates place used car sales annually to be around 40,000,000 vehicles, with 11 million of them being sold by private parties. If you are not tapping in to some of the private party sales, you are missing the boat (and that boat is filled with cash). Maybe the reason you are not taking advantage of them is because you really don't have the staff or the time to manage all the private party vehicle sales sites that are on the internet. The process may be difficult or even non-existent. VETTX offers a platform to maximize your profits by choosing high-demand, pre-vetted vehicles. But how does that equate to higher profits for you?
Five Ways Buying Private Party Increases Profits
Here are five key ways that private acquisition can increase your profit margins on used car sales.
1. Acquire Used Vehicles More Quickly
If purchasing from an auction, you may not have the vehicle on your lot for a week or longer. But the purchase price went on your books at the time you won the bid. Your money was tied up for that amount of time. However, if you purchased from a local private party, you have that vehicle on the lot within the first or second day.
2. Lower Costs for Repair or Conditioning
Most private party sellers have their vehicle clean, in good running order, and will have made all the improvements that are needed to make the sale. This also applies if you are purchasing from a flipper. You will have fewer costs involved in getting the car ready as well as lower labor costs.
3. Less Competition
You will not be bidding against your competition, which in turn may keep your costs lower. In addition, you know what you are getting as opposed to what you sometimes get from an auction.
4. Higher Quality
By using VettX's streamlined software, your purchase will be vetted, and you will be able to find the highest quality vehicles that meet the parameters as defined by you and your customer market. Higher quality vehicles, that are in high demand, will move more quickly, equating to fewer days in stock.
5. No Acquisition Fees
By buying direct from a private party, you will bypass many acquisition fees such as auction lane fees, transport fees, and other fees associated with purchasing the vehicle. As fuel prices continue to rise, transportation costs will follow.
Start Making More Money Off Used Cars
Your goal is to sell cars and to move them quickly. With used cars in high demand, the best way to do that is to keep your inventory in line with what your customer wants and needs. You want to find those vehicles quickly and move them just as quickly off your lot. Don't overloOKpurchasing vehicles from private sellers just because you don't know what to do or how to do it. Contact us to schedule your demo today!