6) Myth: I have to cut prices to increase customer interest in my vehicles. 

Reality: If you build value through good merchandising, you can make good gross using the Internet. 

"Are you placing the greater percentage of your advertising message on price, or is it on value?" Lescota posed. "Price is an important element, but I need to know it's worth something." 

Lescota said current photographs and detailed information are vital ingredients to proper merchandising and marketing. They stir emotion and stimulate the senses, he added. 

"Gross is made through proper pricing. Yes, absolutely. But gross is also made through proper merchandising by building emotion. Make me want to have that car," he indicated. 

7) Myth: Only uncommon cars sell online. 

Reality: Well-merchandised "common cars" will attract Internet consumers' attention. 

According to Perry, the top five most searched cars on AutoTrader.com in May 2008 were the Honda Civic, the Honda Accord, the Ford Mustang, the Toyota Camry and the Ford F-150. 

"Well-merchandised cars can convert that ‘common car' into an ‘uncommon car' in the consumer's mind. When you explain it well enough, and hit one of their hot buttons, they will become interested in it," Perry said. 

8) Myth: I can't differentiate my dealership online because consumers are searching "car by car." 

Reality: The Internet provides numerous high-impact tactics to merchandise your dealership. 

Perry said critical messages to stress to consumers in selecting a dealership is that the store is known for offering the lowest price, it has an impeccable reputation, the staff are professional and courteous, there's a wide selection of inventory and the sales staff are knowledgeable about the vehicles. 

Dealerships should tell their story through a 30-second to 3-minute video, Perry said. "When you're getting ready to shoot, think about what the consumers are interested in, and then put your best foot forward," he pointed out. "Explain why people should do business with you." 

9) Myth: Advertising low payments sells cars. 

Reality: You must find your pricing "sweet spot." 

Lescota challenged the audience to conduct an analysis by investigating over the last 90 days what was the typical payment on the cars sold and what cars sold in the shortest period of time by payment versus what cars sold in the shortest period of time based on down payment. 

"You have the data. Quit guessing. It's not just a matter of low payment. It's a matter of knowing what we call your 'sweet spot.' It will help to dictate what your customers are buying," he said. 

10) Myth: Reconditioning is a negotiation tool. 

Reality: Reconditioning and certified programs are key merchandising tools. 

"We should use reconditioning as a selling tool, not as a closing tool," Lescota stated. 

"You want gross. You want value. You want to make more profit. You sell value. Reconditioning is not negotiable. It's value selling," he added. 

11) Myth: My floor salespeople should continue to focus on the usual way of selling cars. 

Reality: Salespeople must have an awareness of the changing market and adopt a more consultative role when selling cars. 

According to Perry, today's sales associates can learn something from real estate agents. They need to know how to counsel, know their inventory, facilitate customer decisions, know their product intimately, merchandise their product, be full-service agents and follow up their prospects. 

Both Perry and Lescota said it's critical that dealerships have enough used-vehicle sales consultants to meet the demands of floor traffic. 

"There are no secrets about our business. Information is readily available out there on the Internet. So are you addressing the changes on how people are buying today and are you separating yourselves from all the others?" Lescota asked. 

12) Myth: There is no real "science" in running a used-car department. 

Reality: A metrics-based approach can have a big impact at your dealership. 

Lescota said that managing inventory turn is absolutely essential because a dealer does not want to get caught with "frozen capital." 

So he advised that dealers need to ask how many used vehicles they should sell, how many should be stocked, how long should they hold onto a vehicle in stock, what does it cost to hold a vehicle in stock and how do they know if their inventory is balanced. 

Lescota said stores should be turning their inventory a minimum of nine times a year. But he said it's possible to turn it even more. He then asked how many NIADA certified master dealers there were in the audience and posed to them how often they turn their inventory. There were several who said at least 12 and one said he turns it at least 15 times a year. 

"It can be done. It's not fantasy," Lescota stated. 

Perry then explained there are several tools available for dealers to help them evaluate which vehicles they should be stocking based on their market. These include products from vAuto, First Look and AAX. 

"We don't care which tool you use. Use some tool. Don't say you can't afford it. You can't not afford to," Lescota said bluntly. 

"We're not saying to do away with your intuitiveness or your entrepreneurial spirit," Lescota added. "Support those gut feelings with facts. You can turn your inventory, and that's when you are going to make your money."