The automotive industry has been a strong one ever since its creation. Previously cars were an extremely luxury item, only owned by those with money to burn. Now there are nearly as many cars on the planet as there are people. And while not all of them are in use, it just goes to show how big this industry has become.
Today we want to take a look at the differences between selling Old and New Cars. And also touch on how you should go about selling them. And before you ask, there is a wrong way to sell new cars. So let’s dive straight into it.
You might be reading this and think it is pointless for us to cover this point. It seems like new cars should sell themselves right? Someone wants the latest model, they are going to get the latest model.
This is so far from the truth it’s dangerous. Nothing will sink your business faster than this mindset. This might work for brand dealerships that only stock their own models, but for an independent, it won’t fly. For a few key reasons.
Firstly, a lot of your potential customers aren’t going to be people with endless money to burn. Your main demographic will be people looking to treat themselves or make an investment. And these people can be easily swayed into buying second-hand. So you need to whip out all the classic sale techniques to reel them in.
The first tip we offer is variety. You need to have a wide range of new cars on your lot. When a customer comes in, you want to make sure you have something that will suit their needs, no matter what it is they are after. Secondly, you need to make sure you are willing to haggle. Even though the cars are new, customers will still want to secure a deal. So brush up on your haggling skills beforehand.
Lastly, you will find a lot of customers are going to buy a car on finance. To that end, you need to make sure you have some strong financial plans on offer. Work closely with your legal and accounting department to make sure they are air-tight as well.
Selling used cars is a whole different game. And this is where you really need to up your sales tactics and have all your information sorted. So let’s start with the basics.
Firstly, you need to have all the legal and financial information surrounding any car on your lot. You should check VIN history of every car and go through their logbooks to get a complete history. This is vital to making a sale. Customers are going to want to know the history of their new car.
Secondly, you will find your customer base has expanded massively. But used car sales also have more competition than new car sales. So you need to double down on all your sales tactics. You need to be friendly and approachable, while also keeping yourself professional and focused on securing the sale.
You also need a variety of cars in your lot, the same as selling new ones. You need to be able to provide your potential customers whatever they need. You don’t want someone walking from your lot just because you didn’t have a red car. And we aren’t joking, it can come down to that.
We hope this guide has been helpful. Now get out there and make some money!