Wholesale estimates continue to be good for used car dealers, with the average wholesale price hovering around $10,000 through June. This is due to a rich mixture of off-lease volume and dealer trade-ins. Strong volumes in these two areas should continue to transfer to greater inventory options, resulting in more retail sales.
The tax season push in the market hit a little later than normal this year but ended up producing a positive trend in the lanes. This aligns with analysts’ predictions that auction volumes will continue to increase over the next few years. As a result, there should be plenty of inventory to supply your demand, no matter your target market or business model.
With this surplus of inventory, even with minimal price decline, it’s important that you take advantage of the different tools and resources available to help you find the freshest and best inventory. In today’s world, that means having the ability to be in multiple places at once. Most used car dealers are accustomed to wearing several different hats already. Yet whether you’re looking to stock your lot through an online avenue like OVE.com or attending a physical auction in-person or virtually, the one consistent piece to your puzzle should be your inventory finance provider.
While the avenue in which you source your vehicles may change, your inventory finance company should be your rock. You should feel confident that your inventory finance provider understands the nature of your business and the flexibility you need, and its relationship with you should mirror that flexibility. This includes providing insight on potential market opportunities for your business, improving income opportunities and counseling you on the latest and greatest industry tools.
Purchasing the right inventory for your target market is paramount to your success. Whether you’re taking advantage of the influx of off-lease units or increasing trends of dealer trade-ins, purchasing inventory that you can sell and sell quickly is key to maximizing the current economic climate. More and more used car dealers are understanding the need to be agile and flexible in their operations, and your inventory finance provider should assist in bringing solutions to the table.
To fully maximize your options in the market, you need to ask yourself the following question: “Do I have a financial partner that completes the final piece of my business model?”