How to Acquire More Inventory for Your Dealership This Year
Feb 24, 2022
Inventory acquisition is critical for a strong start to the year, especially with today’s supply chain constraints. Tax season is upon us and spring is around the corner. If history is a reliable guide, sales are about to pick up quickly. Have you got the inventory you need for the spring buying season?
Acquiring more inventory for your dealership in 2022
The inventory shortage advantage
On the surface, it appeared that the automobile inventory shortage resulting from new security measures and shipping concerns might wreak havoc on car dealerships in 2021. The numbers, however, tell quite a different story. Through July of 2021, car dealerships pulled in a reported $42 million, and those figures reflected an increase compared to the $36 million in sales during the same period the previous year.
This year, with vehicle inventory still tight, effective vehicle acquisition will be the key to profitable sales. Fortunately, we’ve got some tips for you.
How to acquire more inventory for your dealership
The good news is cars are flying off of lots as we have rarely seen before. The bad news is many dealerships can’t keep up and can’t keep inventory.
One of the most effective approaches to keeping your inventory full is to employ multiple inventory acquisition techniques. The more avenues of acquisition a dealership can use, the better because the old problem of too much inventory is of little concern in today’s market.
Don’t forego the means of traditional inventory acquisition.
While manufacturers struggle to meet demand, face security shipping delays, and a myriad of other related issues, dealerships have felt the strain. Many dealerships report vehicles arriving, but they aren’t ready to move. Others are simply not getting orders met, and some have even experienced months-long delays.
Although car dealerships have no recourse to remedy this problem, it is still essential for dealerships to maintain the pipeline of inventory acquisition.
Creating a diversified sourcing strategy doesn’t omit traditional inventory acquisition methods; it merely means adding to them. That also means continuing to use traditional techniques such as wholesale auctions. From here, dealerships will need to utilize new strategies, processes, and technology.
“Inventory is the lifeblood of the dealership, and dealers must find unique ways to acquire good car inventory.”
– Randy Kobat, Vice President of Operations for Inventory Management Solutions at Cox Automotive
Using new strategies to acquire more inventory for your dealership
More car shoppers are taking to online avenues to find, search, and even purchase their next vehicle. Using your website for more than a marketing medium can offer inroads to help acquire more inventory for your dealership. Engaging with customers and potential customers can position your dealership to find and procure more quality inventory throughout the year.
Here are some innovative ways that you can acquire more inventory for your dealership in 2022:
1. Create sales events
Creating sales events and connecting with consumers outside of traditional dealership channels will provide more options to acquire more inventory for your dealership. Car shoppers ready to buy are one of the most viable resources for adding quality vehicles to your existing vehicle inventory. These are routes that Kelley Blue Book can assist your dealerships with to ensure your vehicle inventory is maximized.
Here are some ways you can promote your sales events:
Include giveaways, draws, or raffles for those who attend
2. Using tech and data solutions to acquire more inventory
Technology has become an essential tool for many car dealerships. These tools aid dealerships in defining and establishing a consistent appraisal process, and they enable dealerships to offer online appraisals and much more.
One way to collect more data on your customers is implementing a CRM. CRM’s collect and store customer data to make better-informed decisions on purchasing behavior.
Another strategy is implementing the Kelley Blue Book price advisor on your website. This will allow customers and clients to see the vehicles listed below market value, leading to an increase in sales.
Kelley Blue book helps dealers build trust by providing a transparent experience, instilling confidence in consumers. This trust and transparency can help to close more deals and acquire additional inventory.
Ensuring your inventory is full
Having a complete inventory and a substantial selection of vehicles is the lifeblood of every car dealership. Contact Kelley Blue Book to learn more about how to acquire more inventory for your dealership, not just today, but every time there is an opportunity.
Selling cars is the goal of every dealership, and that begins with your vehicle acquisition strategy and practices.