Doing the deal versus selling the vehicle

The trading in of potential retail stock can have a significant impact on the profitability of your dealership. A retail trade in is a vehicle that you would want on your used vehicle floor.

Donald Christy 2

If it’s a potential retail trade-in, then you need to ensure that your trade-in price is competitive and that you look at the whole deal in terms of potential profitability versus the used vehicle and new vehicle department trying to maximise their individual GPs on the deal. Your sales person needs to negotiate the deal securing the trade-in versus just selling the car. Your sales person needs negotiation skills and not just sales skills.

The person who prices the trade-in needs to be highly skilled and knowledgeable about the market. The used car market is dynamic and the more skilled your used car pricing person, the more likely you are to get good stock. How skilled is your “pricing person”?

Find out why you missed out on retail trade-ins on which you were working? Where did it go and why? Discuss trade-in values offered with your pricing person to understand why a vehicle has been priced at a certain value and make sure that you are happy with the reasoning. Use this information to try and ensure your “process” improves and that you are more successful in securing retail trade-ins going forward.

Measure your trade-in and lost trade-in stats? Look at them by sales person, by model. What are your expectations and how successful are you compared to your expectations? Include retail trade-in’s as part of your sales person’s commission scheme. This will certainly assist in ensuring that the sales team is part of your trade-in strategy.

Dealerfloor (dealerfloor.co.za) and I will be publishing regular articles on dealership efficiency. I am really looking forward to sharing ideas with you. Join the conversation by sending a WhatsApp to 082-776-1887 to be added to our group.

- Donald Christy

More Dealer News stories

Success part of GWM Alpina Springs repertoire

Success part of GWM Alpina Springs repertoire

A veteran in the automotive world with a proven track record over many decades is at the heart of GWM/HAVAL Springs’ success in the latest Dealer of the Year contest for the Chinese vehicle brand.

  • 12 April 2024
Stellantis expands offering with CFAO Mobility, Westvaal

Stellantis expands offering with CFAO Mobility, Westvaal

Stellantis continues its drive to make brands easily accessible to customers through its multi-franchise dealer network with the addition of Jeep and Fait brands to Williams Hunt Fourways in Johannesburg, part of CFAO Mobility, and the same addition applies to the Westvaal Motor Group in Menlyn, Pretoria.

  • 10 April 2024
BMW Midrand DP tells us how it’s done

BMW Midrand DP tells us how it’s done

BMW Midrand won the much sought-after Retailer of the Year award for the first time in 2021, and on the MINI side it has been awarded the top retailer title twice consecutively, in 2018 and 2019. Now the dealership has won both brands' top award for 2023.

  • 9 April 2024