Profitability is — and has been — the hot topic in the automotive retail industry for a while now.
Auto dealers looking to drive net profit have their challenges and opportunities in today’s market. No doubt, inventory turn plays a role here. Real-time pricing and quicker inventory turn can boost net profit, thanks to credit gains.
According to vAuto’s Brian Finkelmeyer:
“Dealers who accelerate their new-car inventory turn benefit financially by holding on to a higher percent of their below-the-line factory dollars, reducing the necessity for extreme discounting on distressed inventory, and most importantly, turning the ‘Wheel of Fortune’ faster.”
Getting more inventory turn this year would have a positive impact on any dealer’s gross. This starts with talking to more auto buyers, and not just “shoppers”.
Paying twice for the same lead will leave its mark on dealer margin. Dealers who are still over-spending in sourced digital sales leads may notice their traditional media brought in that same buyer.
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Ward’s Automotive | Ideaxchange:
How to Turn, Turn, Turn Car Dealership Inventories | Adam Armbruster on Wards