Discover new ways to grow your dealership and connect with new customers. If you’re considering a new campaign to increase your inventory and reach a new audience segment, consider offering a “We buy cars” campaign. Learn more about the benefits of car dealerships’ buy cars campaigns to see if this strategy may work for your dealership.
Increase used car inventory
Across the nation, dealerships sold approximately 8.3 million light-duty vehicles in the first half of 2021, according to a midyear report by the National Automobile Dealers Association. Whether you’ve seen an increase in used car sales or are struggling to keep up with sales projections, a car-buying campaign can help you acquire profitable inventory. Expanding your inventory can be a benefit whether you have a few cars or thousands across multiple locations.
Some dealers are offering incentives to their sales team to find used cars. This aggressive strategy can increase your inventory but can take more time and can be more of an investment. A campaign offering to purchase used vehicles at your dealership may be a more convenient and effective way to increase your inventory.
Even if you’re not dealing with the current inventory shortage, expanding your used car inventory can help you offer more options for your customers, increasing opportunities to attract new customers to your dealership. Don’t just expand your inventory, but you can utilize vAuto Provision strategy to find the most competitive vehicles for your dealership.
Purchasing a new vehicle from a “We buy cars” campaign can also be more convenient than reaching out to customers on your service department lists or lessees. These customers may be interested in upgrading their vehicle or ending a lease early, so still reach out to these customers for diverse opportunities to build up your inventory.
Hone your inventory options
Not looking for a diverse range of used vehicles for your lot? A car-buying campaign can also be a competitive way to focus your inventory. Simply offer cash or trade-in value for any vehicle, and sell the vehicles you don’t want to carry wholesale. Wholesale is becoming a competitive option for dealers, as the price of used cars at auction rose more than 5% in September 2021, according to the Manheim Used Vehicle Value Index.
Your car-buying campaign helps you increase the number of used cars coming to your location, which you can then sort through by choosing which vehicles to keep on your lot and which ones to pass on and still earn a profit. Use the increase in inventory to make decisions on trending makes and models of cars.
Tap into a new market segment
When car dealerships buy cars, they offer powerful incentives for new customers to connect with them. Customers who are interested in selling their vehicle may not be the same ones that are likely to visit your dealership and review your inventory.
When you run a car-buying campaign, you can offer these new customers a cash offer and a trade-in value. As long as these offers are competitive, they can attract consumers looking to sell a used vehicle or update their current ride.
You can benefit from both situations. If your buying campaign ends with a cash sale, then you’ve increased your inventory. A trade-in helps you diversify your inventory with a used vehicle and helps you land a sale on a new or used vehicle.
Use the Kelley Blue Book Instant Cash Offer tool to power your car-buying campaign. This convenient tool makes it easy to offer a competitive rate for a cash or trade-in offer. You don’t need to calculate the value of a used vehicle on your own, but simply offer to buy a vehicle at the stated value of an Instant Cash Offer.
Establish consumer trust
As a car dealer, establishing consumer trust is essential. An aggressive sales strategy can turn away many buyers, so a car-buying campaign is a great way to incorporate a buying strategy with your sales model. Start by building a relationship with your customers and use a trade-in strategy to show that you’re interested in a mutually beneficial relationship with your customers.
You’ll continue to promote deals on your new and used inventory, but offering cash or trade-in value for used vehicles can help change the conversation. Your customers may not feel as pressured to buy when you start the conversation with an offer to buy their vehicle.
Using a third-party valuation tool also helps you maintain a high level of trust. When you work with a tool like Kelley Blue Book Instant Cash Offer, then you can point to a third-party price estimate as you offer a fair value for trading in or selling a vehicle.
Consumer trust takes more than a few tools, so you should also work with your sales team to promote your car-buying campaign. Lead with an offer to inspect a vehicle for a cash offer or trade-in valuation. This lead can be a great way to start a conversation and lead a customer down the sales funnel.
Promote trade-in opportunities
If you’re experiencing fewer vehicle sales in recent years, then you’re not alone. There were approximately 3.4 million car sales in 2020, according to Statista. This is significantly less than the recent peak in 2016 of over 17 million vehicles.
Some car dealerships buy cars to encourage trade-in opportunities. Use the Kelley Blue Book Trade-In Advisor to expand leads from your website using this same strategy. Customers who aren’t willing to sell their vehicle may still be interested in trading it in for a newer model.
Trade-ins represent a significant profit for many dealers. If you aren’t promoting a trade-in model for your customers, then you could be missing out on an opportunity to earn more from each transaction.
Trading in a used vehicle can also be a convenient option for your customers. When you sell a customer a new car without purchasing their used one, then they may try to sell it to a private party. Vehicles for sale by owner are difficult to advertise and time-consuming to sell. Be sure to mention how a trade-in can be convenient for your customers as you discuss the value of their vehicles.
Some trade-ins are best sold at an auction, while others are suited for your lot. Both options allow you to earn a profit, so don’t let these differences hold you back from launching a car-buying campaign. Advertise your willingness to purchase used vehicles and review them on a case-by-case basis to determine the best way to sell them.
Shift your branding focus
You can even use your car-buying strategy as an opportunity to shift the branding focus of your dealership. Don’t just offer to purchase vehicles as an afterthought, but proudly promote this new shift in sales to your team and customers. Focus on trade-ins and other services that are beneficial for both your team and your consumers.
A shift away from a sales model to a buying model works well with building consumer trust. This makes conversations with your sales team feel less like a sales pitch and more like an opportunity to earn money on their used vehicles.
Expand customer testimonials
A new customer is a new opportunity for a testimonial. Satisfied customers are great advertising, particularly as they tell their friends and family about the deal they got at your dealership. Tap into this opportunity by promoting your car-buying campaign.
Buying a used vehicle for cash or trade-in value brings in customers who may not have otherwise visited your location or offered a testimonial. Be sure to work with your sales team to make these first impressions positive ones. This can increase your reputation in the local community and attract more leads for sales, trade-ins, or new car purchases.
Prepare to buy used cars with Kelley Blue Book Instant Cash Offer
From a few used trucks to a full lineup of light-duty cars, find out how you can expand your inventory, build your reputation and earn more with a car-buying campaign. See why so many car dealerships buy cars before using the Kelley Blue Book Instant Cash Offer tool to promote your own car-buying goals. Contact the team at Kelley Blue Book and read our blog to receive answers to any questions you may have about acquiring cars and using the Instant Cash Offer tool.