Forecasting the Future: Used Car Price Trends
Understanding price and market trends for used cars is an essential part of managing your dealership. As we consider current price trends for used cars, we can more easily look toward the future and set dealers up for success.
To help forecast the future, NCM Associates Instructor and Consultant Bob Ringo Jr. shared his insight into used car price trends as well as how to effectively manage and market your used inventory.
What Drives Used Car Price Trends?
The price of used cars is driven by supply and demand. As most dealership leaders have experienced, the movement of certain vehicles is affected by what drivers are looking for, which ultimately alters the price they sell for.
Regardless of current price trends, it's important to sell your used inventory at a fair market price. A good used car manager understands that certain trends happen at certain times of the year. Staying on top of these price trends will help you effectively move your used inventory.
Utilizing Used Car Price Trends at Your Dealership
While supply and demand are driving factors of used car price trends, it's equally important to consider the state of the economy. Interest rates may increase, and lending institutions may tighten their lending requirements.
To best utilize price trends at your dealership, used car managers must stay on top of all aspects of their business on a daily basis. Taking the time to research, recondition, and market the right vehicles at your dealership will help your used inventory thrive. A manageable inventory at a fair market price will result in a healthy return on investment (ROI) for the dealer.
Additionally, utilizing used car price trends at your dealership is where the used vehicle manager plays a vital role. This person will need to think similarly to a money manager or an investment manager, as they are the only managers who will need to buy 100% of what they're going to sell over the next month.
How to Effectively Market Your Used Cars
When it comes to moving your used inventory in accordance with used car price trends, it's important to develop an effective marketing strategy. To achieve this, dealerships can maximize their digital exposure by ensuring that content is seen by customers in the designated market.
The real showroom is now virtual, and reaching your target audience with a clear message allows your dealership to put its best foot forward. Used cars are a competitive part of the automotive industry, so when you invest in strong digital marketing, you can obtain the maximum ROI for your dealership.
More and more drivers use digital marketing to purchase individual products, including used cars. By updating your model pages, driving traffic toward your used inventory, and ensuring that information is accessible to the right audience, you can effectively market your used cars.
Learn More About Used Car Price Trends at Marketing
Used car price trends are constantly changing to match current supply and demand. As a dealership leader, you can stay on top of future price trends by effectively utilizing and marketing your used inventory.
Contact the professionals at NCM Associates to learn more today!