Make the Used Inventory You DO Have More Appealing
Used car prices have been steadily increasing over the years even before the onset of the factory shutdowns of the early Spring when COVID-19 hit the US. Though not as high a jump as new cars, used car prices were rising.
Then a funny thing happened. Car buyers got hit with a couple whammy...prices rose AND inventory became scarce. Like, REALLY scarce.
A big driver of this shortage was a direct result of the abrupt shift car buyers made when they saw the new car inventories dry up in the Spring. They had to buy something, right?
Many dealerships have had to resort to buying units that are a bit older and with higher miles just to keep the lot full. But that’s ok.
When struggling to keep adequate inventory on the used lot, there may be one simple product offering that can help make even the units that are a reach in terms of mileage and age more appealing. Offering a standard powertrain warranty on all units can help take those units you may think will be difficult to sell and make them more attractive to buyers who don’t necessarily need the latest-and-greatest models. Peace of mind is on the mind of every used car buyer when they are looking at an older model...no reason not to give it to them.
This doesn’t mean you don’t make any gross though. Simply include it as a Line 1 add on the buyer's order and keep it at a reasonable margin. Dealers who offer standard powertrain protection or in some cases, a lifetime powertrain warranty, find higher CSI scores and a lift in repeat service customers.
There is one more advantage to offering a limited or lifetime warranty...you easily tee up the F&I manager's ability to upsell to longer and more inclusive coverage. A buyer may feel like adding a couple of years of gold or platinum level coverage is worth it since they already get basic coverage now. High margin upsell and everyone wins.
Click here to find out more about how truPowertrain, powered by truWarranty, can help your store add this protection to every used unit. We handle everything from roadside to reinsurance...truly custom options for today’s challenging used car selling environment.
One way to make sure your used car inventory is as appealing as possible is to offer a lifetime powertrain warranty. And if you offer it as a preload, even better. Your Customers Want It…So Why Not?
One way to make sure your used car inventory is as appealing as possible is to offer a lifetime powertrain warranty. And if you offer it as a preload, even better.