Car sales have been declining for the last few years. The COVID-19 pandemic played a considerable role in this decline, as many lost jobs and couldn't afford car payments. Five years before the pandemic, sales averaged around 17.3 million per year, but sales have decreased since the pandemic. Stats from statista.com further showed that in 2020, car dealerships across the U.S. recorded 14.5 million sales and 15 million sales in 2021.
However, the used car market has seen an increase in sales. The number of used cars sold each month at used car dealerships increased from 6.3 million to 13.65 million between July 2011 and July 2021. This is because car dealerships have been selling more used cars to make up for declining sales and profit. Used cars are a great way for dealerships to make money, but they can be challenging to sell.
Unlike new cars, used cars don't have the same appeal. They may have dings, scratches, and may miss some of the new cars' features. However, plenty of people are still looking to buy used cars.
Mastering the Art of Selling Used Cars at a Dealership
Selling used cars at a dealership is an intricate dance of strategy and customer engagement.
To excel in this endeavor, consider the following comprehensive tips that cover every facet of the process:
1. Fair Pricing Matters Most:
At the core of successful used car sales lies pricing strategy. Striking the right balance between a high price that deters buyers and a low one that cuts into your profits is pivotal. Research the market thoroughly to gauge the prices of similar vehicles. This knowledge will empower you to set a price that appeals to buyers while ensuring a profitable deal.
2. Present Clean and Pristine Cars:
The aesthetic appeal of your cars can significantly sway potential buyers. Before showcasing any vehicle on your lot, ensure it's impeccably clean and in top-notch condition. Invest in professional detailing services to leave a lasting impression. A well-maintained car signals care and reliability to potential buyers.
3. Craft Compelling Descriptions:
Persuasive and concise descriptions are indispensable in attracting buyers. Highlight features that are likely to resonate, such as low mileage, recent repairs, or advanced tech elements. Honesty is paramount; accentuate the positives while staying true to the car's condition to build trust.
4. Facilitate Financing Options:
Many potential buyers require financing assistance. By offering various financing options, you simplify the purchasing process and broaden your potential customer base. In-house financing or partnerships with banks and credit unions can make owning a car more attainable for a diverse array of buyers.
5. Establish a Robust Return Policy:
A comprehensive return policy instills confidence in buyers, assuring them they're making a sound investment. Clear communication of the policy, along with reasonable terms, cultivates trust and safeguards your dealership's reputation.
6. Invite Test Drives:
Empower buyers to experience the vehicles firsthand by providing test drive opportunities. This interactive experience enables potential buyers to evaluate whether the car aligns with their needs and preferences. Accompanying them on the test drive demonstrates your commitment to their satisfaction.
7. Offer Warranties and Service Plans:
Address apprehensions about used cars breaking down by offering warranties and service plans. This gesture assuages buyers' concerns and offers peace of mind. The assurance of post-purchase support can tilt the decision-making scale in your favor.
8. Harness CloudPano's 360 Automotive Software:
In the age of online car shopping, striking visuals are indispensable. CloudPano's 360º photography software revolutionizes your approach to showcasing vehicles. With well-lit, immersive images, potential buyers can examine the cars' features and even spot minor damages. Moreover, the software allows you to create an interactive virtual showroom, enabling buyers to explore your inventory remotely.
Elevate your used car selling game by implementing these multifaceted strategies. Your proficiency in pricing, presentation, customer engagement, and technological integration will resonate with buyers, nurturing trust and boosting sales. In this ever-evolving landscape, embracing innovation and customer-centric practices will set your dealership on the path to enduring success.
Visit CloudPano.com and embark on your journey towards creating captivating virtual tours that leave a lasting impression.
Try it free. No credit card required. Instant set-up.
.svg){kind=small}
.svg){kind=small}