If you’re in the business of buying and selling vehicles, then turnaround matters. The longer you’re holding onto your stock, the less profitable your business will ultimately be. As such, it’s importanst to implement policies that will help you to get your stock out of the door.
If you can do this effectively, then you might begin to treat car auctions as an opportunity to not just buy new vehicles, but to clear your existing inventory.
Implement a 48-Hour Rapid Reconditioning Protocol
As soon as you acquire a new vehicle, you’ll want to get it ready for sale as quickly as possible. That means giving it a thorough clean, both inside and out. You’ll also want to ensure that the dashboard is not displaying any warning signals, and that the paintwork is in good condition.
Restoring the vehicle to the best possible condition will help you to get the best possible price for it. And this is often a matter of performing the same basic steps, over and over again. Make sure that you have a protocol, so that these jobs can be performed to a high standard, every time.
Prioritise Total Digital Transparency and Data
Buyers tend to behave in a certain way at car auctions. By understanding a little of their psychology, you can exploit it. But, increasingly, buyers aren’t just going with a gut feeling; they’re reliant on data. The more of it you can provide, the more reassurance you’ll be able to offer.
Make sure that you have a comprehensive condition report, and that you’re in the habit of listing every last scratch and defect. The vehicle’s service history and telematics data, as well as high-resolution photos from every available angle, will be helpful, too.
Transparency might hurt your sale price in the short term, but in the long term it will build a trust that will facilitate further transactions.
Strategically Select the Right Sales Channel and Timing
Clearing your inventory effectively is often a matter of picking the right channel, and timing the listing. Auctions are at their busiest in the middle of the week, during business hours. Listing at these times will help you to capitalise on higher demand.
If you’re selling something niche, like a classic car, then you might seek a wider pool of buyers by going online. There are a number of specialist B2B platforms worth investigating. On the other hand, if you’re selling something relatively common in high volume, a local auction might help you to minimise costs.
Set an Aggressive, Data-Driven Reserve Price
The longer you have a vehicle up for sale, the more the costs will accumulate. Vehicles need to be insured and stored prior to sale, both of which can be expensive. Then there’s the cost of depreciation – and of stress.
These things tend to outweigh the marginal increase in price that you might gain by waiting. Make sure that you price aggressively for a quick sale – but that you understand the latest market data, and can set an appropriate reserve. If you really need to move a vehicle quickly, you might also be prepared to leave the reserve out entirely.