How Your Dealership Can Take Advantage Of Rising Used Car Prices


Historically, May has long been a productive month for used car prices. In fact, last month was the 28th month in a row of used car price gains. Up 4% over last year, these price increases are good news for dealerships, but only if you’re turning over inventory.

With prices the highest they’ve been in years, dealerships will want to make the most of this by increasing their sales and maintaining a steady supply of used cars that are ready for the sales floor. One of the most important factors in the maintenance of your stock is the reconditioning process.

Here are two ways you can improve your used car sales and make the most of rising prices:

Make Good Buying Decisions
One of the most important things dealerships can do is thoroughly research a car prior to purchasing. This seems obvious, but it’s easy to skip a step and end up paying for it later. Knowing exactly what it’ll take to get a car reconditioned and ready to be sold will empower your team to make wise buying decisions. CarFax and other resources will help you ensure that the car you’re investing in is worth reconditioning, thus maintaining the benefits of higher used car prices.

Increase Efficiency
Buying a vehicle that is worth reconditioning becomes less so if not done efficiently. Having cars sitting around the lot waiting for the next step in the process can cut into dealership profits by the minute. Your reconditioning operation needs to be seamless. This means that each person along the way knows the process and procedures without having to refer to someone else or wait around for answers. By having a set plan in place you can ensure that each department knows and understands the existing expectations as well as the previously established parameters for what’s acceptable. When your people know what’s expected of them you can ensure much more efficient and consistent results.

Higher used car prices won’t help your dealership if you aren’t making sales, and you can’t sell a used car until it’s been made ready for the lot. By making good buying decisions and optimizing your reconditioning process, you can be sure that your dealership reaps the benefits of higher used car prices.

Contact us today to learn about how the ReconTRAC program can improve your used car reconditioning process. We’ll come to your store and train everyone as part of the deal.​