As it’s been for quite some time now, the used car market is still on fire – and it shows no signs of letting up. So, why is your automotive direct mail marketing so focused on selling new cars? Why not try to cash in a bit heavier on this lucrative trend as well?
What’s great about quality pre-owned inventory isn’t just that they’re typically less pricey than buying new for your customers – if yours is a dealership with a solid service department, selling used cars, trucks and SUVs can also mean a bump in maintenance and repair fees, since they require more TLC than a fresh off the factory line model.
In fact, the used car market is so blazing hot right now, many owners are opening new stores entirely devoted to used car sales. If yours is an established and trusted name in the community, it’s well worth considering such an expansion. There’s less competition, especially from the big franchise owners, who tend to devote all of their resources on selling new.
Even though the new car market is never going to go away, it’s still seeing a major decline in profit margins. Used cars, on the other hand, can generate much higher margins – from the original sale, to parts and service, and on to repeat business down the line.
If you’re not entirely convinced, consider this: the 2014 Manheim Used Car Market Report found that used vehicle sales for last year came in just shy of 42 million; new vehicle franchisees only sold 15.6 million of this big number. That leaves over 26 million used car sales for the taking. Ready to start cashing in now?