I think most of us would agree that roller coasters are fun. The anticipation of that next big hill and then the next big drop at high rates of speed can really make your heart pound. But when you are in the car business, roller coasters are often not so exciting. And here we go again. Hang on tight! Gas prices rise and so does the price of used cars as the demand for them rises. Consumers start to freak and decide they cannot afford the larger payment a new car can bring, yet they are trying desperately to get out of their gas guzzler or want to add a commuter car to take away the sting at the pump. So the demand for used cars is on.

It’s times like these when dealers are trying to maximize profit on every deal as the deals are fewer and slimmer. They are struggling with the high price of a vehicle at auction knowing they will not be able to get much for it on the lot. Then there is the fear of buying these used cars at a high price and then the market turns around, and they are stuck with them. It’s a roller coaster that is actually quite frightening.

One thing dealers should consider is hanging on to what they are getting for trades instead of passing them on to wholesalers. Why not sell those vehicles on your lot and make a little/maybe a lot more than you would normally. So many dealers are afraid of selling those vehicles that could present problems. But, making sure the customer is aware that the vehicle is a typical auction vehicle and is sold AS-IS, they should not face too much backlash. Now if a vehicle has some major issues, those should go, but if the vehicle has 150k miles and seems in good condition, keep it.

eBay and Craigslist are great sites to advertise these “wholetail” type vehicles. A lot of shoppers on Craigslist are looking for a cash type vehicle and putting your vehicles on eBay can expose them to a larger audience which could lead to more profit. Having some of those cash type vehicles around can be beneficial as well when you have your normal inventory on eBay and have those bidders bidding $5000 on your $15000 car because that is all they have. Now you have an opportunity to cross-sell them on the $5000 car. If you have not used eBay before, they offer you 4 free listings in a 12-month period. The usual $50 insertion fee is waived, and you only pay if the vehicle sells. You have nothing to lose.

Instead of trying to jump off the roller coaster, why not ride it for a while. Try retailing the cream of the crap, if you will, and keep some of the profit on those wholesale vehicles for yourself. Not only do some of the vehicles make great commuters for those concerned about the gas prices, but they also make great first time buyer vehicles.

If you have never listed vehicles on eBay before, Liquid Motors can show you how. We have the tools you need and the experience to guide you to success. Just give us a call at 877-573-6877, and let us know you would like to get started.

Advertisements