Although prices are beginning to ease for used vehicles, inventory levels are still not where they need to be for franchise dealers across the country. With new-vehicle inventory levels at record lows and dealers facing stiff competition from online used car retailers such as Carvana and Vroom – proper merchandising of used vehicles in stock is essential to thriving in the future. More than ever, a coordinated effort between the the backend and the frontend is crucial to ensuring a fast and efficient pass-off from the point a trade enters recon – until it is Retail-Ready and the sales process can begin.
Dealers should pay close attention to the merchandising tactics of Carvana and Vroom and learn from the practices they have in place to make customers feel comfortable purchasing online and give the feeling of transparency and trust.
For example, Vroom openly displays inspection results on each vehicle on their website. From the tire tread measurement to brake pad thickness to letting shoppers know that any windshield with three or more chips will be completely replaced. Consumers can easily check for open recalls while on the vehicle listing and read the service history report. The “Peace of Mind” section on each vehicle brings shoppers comfort knowing that they have a free limited warranty good for 90 days or 6,000 miles, that they’ll enjoy free roadside assistance, and that Vroom will deliver right to the customer’s home.
If you’re buying a car from Carvana, the 150-Point Inspection List is readily displayed on the vehicle listing, along with Carvana’s Reconditioning Standards, the Carfax, and the installed options and packages and standard equipment listed on the original configuration of each car – creating an atmosphere of trust and transparency with car shoppers.
VelocityEngage enables dealers to compete with heavyweight online retailers by delivering all the information that shoppers need on one page, including the OEM Window Sticker, reconditioning records, the inspection report, ebrochure, and other documents and videos – fully customizable by the dealer.
With VelocityEngage’s integrated Velocity Stickers solution – dealers can save a lot of money since other sticker solution providers charge per sticker-pull, whereas VelocityEngage comes with an unlimited number of window sticker pulls as well as stickers automatically being displayed on inventory listings.
Used car managers are also seeing a huge increase in trade appraisal accuracy using Velocity Stickers – since they get real-time accurate VIN-decoded information during the appraisal process, giving them a true understanding of each vehicle’s value during the inspection process. Salespeople also benefit from having access to OEM Window Stickers by being able to represent themselves as knowledgeable professionals on all makes and models on the lot, using build data in the sticker.
VelocityEngage integrates with the dealer’s DMS to display not just the reconditioning work that was performed on each vehicle, but the dealership’s investment of that recon work – demonstrating the quality and safety of each vehicle. By openly displaying this information to shoppers on the inventory listing page, dealers can communicate transparency and quality that will ultimately result in higher gross profits and more car deals.
ReconVelocity – which is seamlessly integrated into VelocityEngage, enables dealers to speed the entire reconditioning process from trade to Retail-Ready, by giving everyone involved in the process total visibility of every vehicle in the recon process. In the crucial race to shorten the time from acquisition to frontline, ReconVelocity enables the used vehicle baton to pass from Recon To Retail faster than ever, maximizing critical selling days while reducing daily holding costs and vehicle depreciation.
Velocity Automotive provides dealers with velocity-driven software solutions to compete head-on with conglomerate online used car retailers. VelocityEnage and ReconVelocity are essential tools in the franchise dealer’s toolbox to maximizing used car gross and fueling used vehicle inventory turn.