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Top 7 Ways Dealers Can Turbocharge Their Used Car Inventory

By Christina Wofford

High used car prices are not expected to plus impressions, and more than 30 also communicating they are a local
dip for a while. Cox Automotive predicts it trade-in requests after launching a leader in partnering with customers
could be 2025 or later before used vehicle geofencing advertising campaign. The to trade up to their next great vehicle.
supply and demand return to normal. dealership wanted to increase brand Successful dealers make sure their
Because of the high demand for vehicles, awareness, reach more consumers, and social media pages are up-to-date and
there is an ample opportunity for dealers to get more trade-ins during a two-day actively post and respond to customers
take advantage of the market. “Appraisal Palooza” campaign. on their social sites.
3. Focus on the service drive. More 6. Launch an online buying center. To
Dealers who build a used consumers are returning to dealerships streamline the process and attract more
inventory strategy can now for service and warranty work as the consumers to trade-in or sell their cars,
dealers are launching specific buying
average age of a car on U.S. roads rose
use it as a backbone of their to 12.1 years in 2021, according to IHS websites and buying centers. Dealers
success moving forward. Markit. Dealers can leverage these are giving car buyers the option to do
customers as a source of inventory more online than just search inventory.
Here are the seven winning strategies top acquisition. Some dealers are drafting Let followers book a virtual vehicle
dealers are using to get more trade-ins: trade-in offers while the car is in their appraisal without having to come into
shop. They are then approaching the the showroom. Consumers appreciate
1. Use new channels for advertising customer with the request or leaving getting pre-qualified for credit and
buyback incentives. More than the proposal in their vehicle for instantly getting matched to cars they
80% of U.S. households have at least consideration. can afford, all online. Customers love
one streaming subscription, and the 4. Promote offers by text message. the streamlined buying process — the
pandemic has only increased that Only one in five emails is ever opened, Amazon Effect — making it easy and
number, according to Deloitte’s Digital but 95% of text messages are read convenient online.
Media Trends Survey. With Amazon within three minutes. Dealers are 7. Seek customers on eBay, Craigslist,
streaming ads, dealers can target taking advantage of this by using text and Facebook Marketplace. Every
that growing audience and leverage messaging to effectively promote day, consumers post thousands of
Amazon’s insights, including consumer trade-in offers to thousands of previous vehicles to sell on eBay, Craigslist, and
shopping trends and geography, to target customers, especially those with the Facebook Marketplace. Dealers are
their ideal audience. This results in a most sought-after vehicles. Sweeten activating alerts on these platforms to
much more targeted ad buy over cable the deal on new vehicle purchases with inform them when consumers post
TV or radio. Bettenhausen CDJR, in additional incentives for bringing a vehicles they want to sell. Dealers are
the Chicago area, uses streaming ads to trade-in. Consumer text messaging is a also enticing their employees with
promote its auto valuations and instant highly effective way to reach customers. extra money and encouraging them
cash offers for vehicles. “We see strong McClinton Chevrolet in Parkersburg, to find cars for sale as possible new
results from the streaming ads since West Virginia, sent out a bulk text vehicles for the dealership’s lot. Every
only people interested see the ads,” said message with an eye-catching graphic avenue needs to be explored.
John Doolin, Bettenhausen’s marketing to thousands of customers offering
director. “It’s super quantifiable.” trade-in and trade-up incentives. The Dealers who build a used inventory strategy
2. Target with data and conquest the text messages garnered 30+ trade-in can now use it as a backbone of their success
competition. By leveraging their requests and over ten appointments moving forward. Inventory challenges amid
CRM, dealers are targeting consumers scheduled in the first week. “I knew a the worldwide semiconductor shortage are
with older vehicles, those in need text would be the most effective way likely not going away this year. But luckily,
of major service repairs, and people to get in front of people,” said Ginny there are plenty of consumers who want
who have indicated online they’re Bowden, McClinton’s dealer principal. to trade in their vehicles or sell unneeded
interested in selling their cars. Dealers 5. Use social media to show the value of extra cars. t
are using targeted ads to geofence trading up. Seventy-three percent of
their competitors and promote their car buyers say Facebook is the social Christina Wofford brings more than two
trade-in offers. Geofenced advertising site they use most, while 75% of car decades of experience in journalism,
campaigns are a great way to target buyers say online video, such as on marketing, communications, and public
customers on their mobile devices in YouTube, influences their shopping relations to Digital Air Strike. As the
a specific radius around a particular habits. Dealers engage with their social senior vice president of marketing and
event, shopping area, and competitors. media followers by featuring their communications, she is responsible for all
Muller Honda of Highland Park, near inventory in short videos and on their marketing and lead generation efforts,
Chicago, earned 150% ROI, 450,000- Facebook business page. Dealers are including earned media and event planning.

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