"Luken10" (luken10)
04/17/2015 at 12:26 • Filed to: None
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"Luken10" (luken10)
04/17/2015 at 12:26 • Filed to: None | 0
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Hello again opponauts! For my school project I need some insight from people who work in or have knowledge in the car dealership industry. Specifically used car procurement. It would be INCREDIBLY appreciated, and I'll even cite you as a source if you prefer!
I am essentially trying to find out the ins and outs a dealership has to go through for their used car sales. Where do you get your inventory from? What do you do to refurbish the vehicles? What is your mark up? What is your turnover rate? Etc. Even if you don't know it all, your input would be a huge help to me.
If you want to contact me directly you can shoot me an email at !!!error: Indecipherable SUB-paragraph formatting!!!
For all of you who answered my surveys last week, a big thank you to you all! Oppo has been a huge help and resource to me with this project.
EL_ULY
> Luken10
04/17/2015 at 13:04 |
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Hello, I work here :]
I don't deal with used car sales but can definitely try to answer some questions. Our inventory is based on trade ins. A customer turns it in usually for the down payment. To be honest, those dudes low ball the customer usually about a grand then negotiate from there (appraisal process). After the car is officially traded in, one of two things happens. One is that an outside wholesaler will make a run through here and buy the vehicle(s) before the car is inspected. The other is that the car gets picked up by our used car tech for inspection. If it's too expensive to fix, it gets sent to auction of recommended to another wholesaler. If it is in good shape or needs just minor little things (tires, filters, etc.) those costs get added to the invoice and put on the lot for sale. Our used car department doesn't really push used cars as much as new cars given our high end brands but other stores like Lamborghini of Houston, Spyker of Houston, and others really push used cars primarily. Fun fact, my Aston dealer is #1 in sales and we have the largest Lotus inventory in N. America. Used car sales is pretty slow here mostly because wholesalers sweep in the trade ins before they reach out lot. As far as the money side of it, i'm not too sure. If you need me to ask questions, let me know. I am currently in parts for the 4 brands (Volvo primarily) but I was a tech here and front end specialist for all 4 brands. Before that, I was a master tech for Lexus.
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Luken10
> EL_ULY
04/17/2015 at 13:43 |
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Oooh, fancy! EL_ULY I was hoping you would respond! If I am ever in the Houston area I am paying you a visit! It must be nice to be around such high end vehicles all the time.
Do you have any more information on these wholesalers who buy your trade ins? Do you know how much your dealership marks up trade ins for the wholesalers? Do you know how the wholesalers run their business? Do only the worse for wear vehicles go to auction, compared to being bought by a wholesaler?
Sorry for lots of questions! It's a fairly in depth report.
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EL_ULY
> Luken10
04/17/2015 at 14:33 |
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The wholesaler actually owns a couple used car lots (specializing in these sort of vehicles). I don’t know exactly how much they mark up to the wholesaler but it isn’t much (+/- $1000). Some cars, random eco boxes head straight to auction as far as our dealership is concerned. A 2002 E-class (if in good shape) will be sold here along with gramdma spec Volvo’s in good shape. Heck we even have a 94 Lotus Esprit here..... for about 3 years but it’s still here lol :] That particular wholesaler or the few others usually do not purchase cars in bad shape because of the amount of money they have to put into them. They have a high standard for the cars they will sell and want them in tip top shape. Aslo, they don’t buy the good eco-cars because their lots specialize in high end cars from really well kept 2000’s Volvos to Lamborghini’s and Astons. Again, my dealer isn’t the best example of used car sales at dealerships mostly because of our low monthly turn around. A big Toyota or Ford dealer is completely a different story. They sell used cars like crazy and beg for trade ins. Some feature a “Value Lot” with cars priced no more than $5000, sold as-is of course.
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Luken10
> EL_ULY
04/17/2015 at 16:21 |
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That’s interesting that certain wholesalers go and sell the vehicles on their own used car lot. I would have though that they would be some sort of brokerage.
My project is dealing with a medium size used car lot, that will focus on the cheaper end of the spectrum. This is still good insight on the broader picture! Thank you!
Has the Esprit just become an errands car, or is it actually still actively trying to be sold? That would be fun to pick up parts in!
JQJ213- Now With An Extra Cylinder!
> EL_ULY
06/21/2015 at 15:43 |
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Don’t know how I ended up here but El_uly! this here
Explain please if you know anything