Best Buys for Hard-to-Find Subprime Inventory
Routinely, the topic of hard-to-find inventory comes up when talking with dealers. It seems that there is little that gives dealers more anxiety than figuring out where to find the hard-to-buy units. Buying off lease or rental units can get the job done, but many times it leaves a dealer feeling vulnerable to the end of year book drops. There is one area of opportunity though that few dealers have captured and every dealer has available to them, today.
For a very long time, dealers have paid wholesalers $200 or more to buy cars. Wholesalers deliver the vehicles to the dealership and without hesitation, pick up their check. No vehicle history, no vehicle pedigree, just “good buys”, or so we are told. Then the vehicles go off to the shop before showing up on the front line. What floors me is the dealer mentality that it’s ok to pay a stranger to bring you a vehicle, but you don’t pay your own employees to do the same.
- Develop a program that pays all employees a referral fee of up to $200 for any vehicle they can get to the dealership for an onsite evaluation and is purchased by the dealership. Daily, on their drives to and from the dealership, employees pass vehicles for sale along the road. By offering an incentive to these employees, they can stop and start the conversation to purchase these units. All they have to do is convince the seller to bring the vehicle to the dealership and leave the rest to you or the used car manager. Rather than go to the auction and out-bid hundreds of professional car buyers, why not take a chance to out-smart one, non-professional car seller?
- Attach a referral check with an explanation to your employees of how it works to payroll next week. There is no better time to get an employee’s attention than when they are looking at their paycheck. Many may decide they could use some extra cash and by simply taking time to talk to their neighbor, they may earn extra income.
- Hang a flier in the common areas as well as the technicians break room. Many technicians do a lot of work on the side for friends and family. Oftentimes, for little to no money as favors to those they know. If an opportunity presents itself to turn a favor into $200, many times the technician will recommend selling that old car to the dealership and urge the owner to buy something different.
- Lots of vehicles are for sale on Craigslist by individuals. Give your sales team a reason to call on these units, and they can create a flow of possible quality vehicles as well as opening the door to a potential new sales prospect.
This month, consider paying your people to help you stock those hard-to-find, inexpensive units. Not only will your employees love the chance to make more money, but you will love the results that show up on your bottom line.