The knowledge you need is right under your nose, your Used Car Manager.
Used Car product knowledge. Your salespeople need to know what’s on your lot and they need to know more about those non-brand vehicles than your customers. The result; 10% better turn on your used car inventory.
If you’re a Honda dealer with 100 used vehicles and 40 of them are GMCs, Fords and Chevys, the more you know about those vehicles, the better you can improve a 45 day turn into a 40 day turn. Just that 5 days alone translates to 9.1 turns per year from 8.1 turns per year. That’s 100 additional sales at $3,000 per copy (if that is your front and back for late model used vehicles).
The investment is simply taking the available information and making sure that your salespeople have access to it and spend their ‘standing around’ time studying it. People who come to your lot and find that nobody has any in-depth knowledge of their off-brands, are less likely to buy them because they don’t feel that the dealership has any investment in the product that they have on their lot. When the dealership presents product as an ‘after-thought’, that is the way it is perceived. And if it is perceived as an after-thought, the value of that product diminishes.
This is not an ROI on money spent, it’s an ROI on time spent and it’s a pretty damn good return because going forward, you are improving how your salespeople approach their job. They are approaching it as an expert rather than someone just trying to move metal.
If you have a better turn rate than 45 days to begin with, the ROI can be even greater with a 10% improvement. A 30 day turn dealer who improves to 27 days goes from 12.166 turns per year to 13.518 turns per year. That’s more than 100 additional sales per year, it’s more like 138. 138 times $3,000 = $414,000.