There’s no question that the automotive market is in a weird spot right now. New cars are practically impossible to find, and the demand for used cars is at an all-time high. Dealerships are stuck in a challenging position of deciding how to keep their businesses running while inventory is low.
One of the most powerful strategies to bolster your dealership’s collection of vehicles is to buy used cars from the public.
Nearly every auto dealership has some kind of trade program or a process to buy cars from shoppers. In this crazy market, it’s time to step up these programs to ensure you can keep an inventory worth getting shoppers on the lot.
We Buy Used Cars
It used to be that taking a trade or buying a car from the public was a great way to help someone buy a new car off of your lot. While that is still an option for today, it is far more important that you get vehicles into your inventory. That is why many dealerships are ramping up their trade, buy-back, and cash for cars programs.
In this market, it’s worth paying top-dollar for a used car. Many people have cars sitting around that are no longer being used. They aren’t necessarily interested in haggling and dealing with a dealership to sell under previous conditions. By making straightforward and generous offers, these owners are going to be more willing to part with their unused vehicles.
More importantly, when someone stops by to sell their car, you have a chance to create a returning customer. Whether you impress them enough that they buy their next car from, or you showcase your service and parts department, it only takes one positive interaction to earn a customer for life.
As the demand for used cars increases, you’ll easily be able to afford to pay more to bolster your selection.
” Sold” To The Person In The Second Row
Automotive auctions have always been a prime place to find used cars. Your dealership might have attended these once in a while if the schedule allowed it. These kinds of events should be a priority on your schedule.
The concept of a used car auction hasn’t changed, but there might be more competition. Go into these events prepared to spend a little more than would have in the past. If possible, bring a mechanic or someone who can help estimate the cost of restoring the vehicle for sale.
It’s still possible to pay more for a car at auction and still earn a profit when the car sells on your lot.
Tax Deduction For Car Donation
During the process of increasing your supply, you’re sure to run into some used vehicles that will add to your tax liability. It could be that the car seems too far gone, or it could just be a less popular model. Instead of letting these automobiles take up space on your lot, you could consider donating these vehicles to a worthy charity.
The main benefit for you is that you can earn a tax deduction for car donation. These charities will either use or sell the car to help their mission. You can deduct either the fair market value of the vehicle or the final sale price.
While you might prefer to sell every car in your procession, some eyesores are best to get out of view. Instead of taking a loss or scrapping these cars, consider making the vehicle a gift. A simple tax deduction for car donation will provide some much-needed relief come tax season.
This post may contain affiliate links. Meaning a commission is given should you decide to make a purchase through these links, at no cost to you. All products shown are researched and tested to give an accurate review for you.
