With September’s arrival, the many signs that fall is fast approaching surround me. Leaves changing color. Kids returning to school. Days getting shorter. Winds becoming cooler. Another football season kicking off.

Fall’s arrival also brings to a close the hot summer selling season for car dealers. As temperatures begin to drop, used-vehicle sales typically begin to flatten as automakers offer incentives to clear out older vehicle inventory and make way for newer models.  So what can dealers do to put some sizzle into their used-car sales and avoid the fall sales swoon?

Below are some tips to help dealers manage their used vehicle inventory more effectively and improve their speed-to-market without losing sales momentum.

Use stocking tools for efficient inventory management

Among the many dilemmas facing any dealership is proper inventory management. It’s predicted that we will continue to see tight competition among dealers for wholesale vehicles as more turn to auctions to build used vehicle sales volumes and dealership profits. This means there will be greater pressure to find the right cars at the right price — and more temptation to raise a hand at auction even though a unit may not make financial sense for a dealership.

Instead of wasting time researching high-demand inventory, dealers should use online sourcing to identify inventory from a wide net of resources for quicker, more confident decisions. Knowing exactly what cars to pursue, where to find them and what price to pay will yield more operational efficiency and allow dealers to sharpen their competitive advantage.

Replenish inventory online

Some industry observers predict that half of all auction vehicle purchases will be made online by the end of this year. Various online channels allow dealers to purchase vehicles anytime and anywhere. 

Avoid unnecessary risk

With more dealers going online to buy cars, including a condition report can speed up the sale by up to four times faster than those without them. And if arbitration is a concern with buying online, dealers can protect their wholesale purchases with a buy-back guarantee or other assurance products.

Get vehicles reconditioned at the auction

Whether a dealer is selling at the auction or off their retail lot, they’ll need to move inventory as quick as possible and get the best price. The right reconditioning not only increases condition grades, but it also makes vehicles more attractive to buyers and maximizes profit.

Post your vehicles online before leaving the auction

It’s simple — the quicker dealers get their vehicles online, the sooner they sell. If a dealer’s inventory purchases need reconditioning work, it’s wise to consider detailing first for a great first impression and immediate merchandising. By taking advantage of retail-ready solutions, along with other services such as vehicle listing and title management, dealers can market front-line ready vehicles before they reach their lot.

Tweak your transportation and logistics model

Whether dealers narrow their buying radius or expand it, a major factor in their decision-making should be getting inventory to their dealership as quickly as possible. Dealers should consider centralizing with a trusted transportation and logistics provider who can transport their cars quickly and have them ready to sell in a few days versus a few weeks.

If you’ve been in this business for a while as I have, you know how cyclical it is. Supply and demand trends yo-yo as the economy fluctuates, consumer buying power ebbs and flows, and factory gluts and shortages strike. These factors make the job of acquiring the right used vehicles for any dealership challenging.

And as sure as fall's arrival, the competition among dealers for wholesale vehicles will continue to intensify.  However, those who make the proper adjustments now will not only prepare their operations for the future, but also create front-end efficiencies they can benefit from today.
 

Mandy Savage is the general manager at Manheim Detroit.