With tax season looming, it’s time for independent dealers to make sure they’re ready for an increase in used car demand. At the end of 2022, 71 percent of consumers said that inflation was a top concern and many car buyers are looking for ways to save money, which makes purchasing a used vehicle, versus a new one, more appealing.
Before customers have their tax refund in-hand, independent dealers can take the following initiatives to make sure they’re ready for tax time:
1. Stock Up on Inventory
Spring is always a popular time for car sales, and independent dealers who start looking for inventory early, will have a competitive advantage. While supply-chain issues are decreasing, dealers will still face challenges finding the best prices when sourcing inventory. They can utilize a floorplan to provide them with additional cash flow to start stocking up their lot.
2. See What’s Popular in Your Market
Make sure you do some research before purchasing inventory online. Look at what types of vehicles are selling in your area to see if there have been any shifts in customer demand. If you have a dealership floor plan, you can also use tools like Kinetic 360 to run reports and see which vehicles spent the shortest time on your floorplan over the past six months so you can be more strategic when acquiring inventory.
3. Check for Promotions
Whether it’s reduced buy or transportation fees at an auction, or your floorplan is offering no curtailments or reduced fees, keep an eye out for upcoming promotions.
Even with a gradual increase in used vehicles hitting the market, pricing fluctuations could continue to be a challenge for independent dealers. Take advantage of any promotional pricing, so you’ll see a better return on your investment – even if there’s a sudden change in a vehicle’s value.
4. Make Sure You’re Fully Staffed
Most independent dealers have faced staffing issues brought on by frequent turnover. If you find that you are currently short-staffed, now is the time to start hiring.
Not only do you want to make sure that you’re not losing sales because of poor customer service, but you also want to have time to train your staff. If you wait until you experience an increase in foot traffic, you won’t have time to make sure that your sales team is knowledgeable about your inventory so they are in a better position to close sales more quickly.
5. Plan Out a Marketing Strategy
There’s no better way to promote a product than by generating excitement around it, so take the time to find creative ways to market your inventory.
Consider running digital ads around an upcoming tax sale, but don’t forget about running ads on local radio stations and in your community newspaper, too – especially if you live in a small community or rural area.
The wider the net you cast before a sale the better and, by planning early, you have a greater chance of targeting more customers.
Don’t get discouraged if you see a slump in winter sales. Make the best of the situation by planning for the busier months ahead and see if a Kinetic Advantage floorplan could be another way to get ready for tax time. For more information, call 833-310-1610 or fill out this form and a Kinetic Advantage representative will contact you soon!
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