Why Dealers Need to Explore The Used Cars For Sale By Owner Market
May 18, 2022
Picking out the best used cars for sale by owners is always a big decision for many dealerships. Beyond choosing the suitable car make and model, you must also consider your budgetary needs and the car's condition. Thankfully, private used car sellers often have unique, high-quality vehicles that sell faster than what you would find at an auction. If you want to expand your used car inventory and maximize profits at the same time, you need to explore the used cars for sale by owner market. Here’s why:
Reasons to Explore Used Cars for Sale by Owner/Private Seller
In order to survive and thrive in the current market conditions, dealers need to explore new ways to acquire used vehicles. Auctions and trade-ins have become less profitable and often cannot supply the steady stream of vehicles that dealerships need to maintain.
Here are 5 reasons why your dealership should explore the used cars for sale owner market:
1. Higher Margins
Many of the used cars for sale by owner are in perfect or almost perfect condition. Private vehicle sellers take impeccable care of their cars, meaning fewer investments in repairs and reconditioning, a bonus for the dealership. You also get to skip the auction fees which can quickly eat into your profit margins.
2. Faster Turnaround Time
Private party vehicles tend to sell up to 30 percent faster than cars purchased from other used vehicle sources. This means you get to sell more cars faster which is an obvious win for your dealership. Why do these vehicles sell faster? That’s because private party vehicles often have the following characteristics:
Unique features (rims, paint jobs, etc)
Newer models that are in demand
3. More Desirable Vehicles with Unique Features
The majority of used cars for sale by private sellers come with unique features that make them even more desirable for dealers. Most of these vehicles have customized features and functions that can make them pricier on the market.
The vehicle owner may have customized the seats, gotten a paint job, changed the stereo system and lights, etc. These features and other custom functions can help you get even higher marketing when reselling the car.
4. Less Time Spent Sitting at an Auction
If you’ve ever been to a used car auction before, you know how much time is spent sitting and waiting for the right vehicle to appear. Instead of wasting your day at an auction, you could be using software like VETTX to scour used cars for sale by owner on your behalf. Not only is this a huge time-saver (and time is money). As an extra bonus, you also get to save money on gas driving to and from the auction site.
5. Turning Sellers into Customers
Another critical aspect of buying used cars for sale by owners is developing open relationships with the sellers. Client retention is vital and can help you turn current car sellers into future customers. Clients also want to feel confident and know they are in great hands. Treating the current seller with the respect they deserve sets your business up for a possible future customer.
This way, when the private car seller finally decides to buy a new car, they will likely loOKfor your dealership.
Expanding Your Used Car Inventory
Used vehicles are in high demand right now but VETTX can help you track down the exact models you are looking for. You don’t have to rely on auctions or trade-ins anymore. Our software will pull qualified private seller listings in your local market based on what you’re looking for. Contact us today or visit the VETTX University to learn more.