The demand for used cars has been on the rise as a result of the coronavirus pandemic and its effect on consumers’ growing aversion to public transit and rideshare apps. The delay in new car production resulting from the COVID-19 shutdowns has also contributed to the increase in used car sales. J.D. Power reported that car dealerships sold 2.1 million used cars in May and June of 2020, which is 9 percent more than they did in those same two months of 2019.
Knowing this information, how can your car dealership use the increased demand for used cars to your advantage?
- You can use this as an opportunity to sell more used cars.
If you’re a franchise car dealership, the increase in used car sales can mean it’s a good time to focus sales and marketing efforts on used vehicles, especially now that auto manufacturers are back in production. If you’re an independent or buy here pay here car dealership, your lot has a lot of potential to be a hot spot. Focusing on ways to drive traffic to your dealership can help increase your used car sales.
- You can buy more trade-ins from car owners.
Since used cars are in demand, people may be trying to trade in their current vehicles towards a new vehicle purchase. This may be a profitable way to build inventory at your car dealership and, with more people shopping for used cars, this could mean a quick turnaround on trade-in sales.
If your car dealership is looking to reach more customers and sell more cars in your market, fill out the form on our website to learn the benefits of becoming an enrolled dealer in our auto finance program!
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