Everyone loves new cars. They’re shiny, they smell great and the sales staff love making a big sale. It’s a huge part of how OEMs rate their dealers as well. I mean, who doesn’t want to be the “#1 Chevy dealer in the county”?
But once we scratch the surface, the bright sheen of selling these new cars starts to wear off. According to the NADA DATA Midyear 2016 Annual Financial Profile, dealers actually LOSE $227 on every new car they sell and PROFIT $228 from every used car they sell.
Now, I’m not suggesting that you don’t shoot for being the “#1 Chevy dealer in the county”, but if you’re looking to make a real profit, you might want to shift your emphasis towards more pre-owned inventory.
However, if you plan on focusing more on pre-owned sales, you need to realize that the methods you’re using to market today aren’t actually optimized for pre-owned sales. Here’s why: