Used Car Market Report & Outlook
Are you showing the Right Balance of New and Used Cars on your Lot?
Wednesday May 2, 2018
Article Highlights
- At this time in the car business when it is getting harder and harder to hold gross on new-vehicles, used-vehicles are becoming more critical to dealer profits than ever before. In spite of these trends, many dealers still do not have a solid grasp on their used inventory.
- According to Cox Automotive, New vehicle sales in 2018 are expected to decline, while used vehicle sales are expected to increase. It is time to take a look at your balance of new and used cars and explore opportunities to improve.
- “Used retail unit volume equaling or surpassing new retail volume is a foundational correlation of highly successful used-vehicle departments, assuming the dealership is meeting new-vehicle volume goals,” Les Abrams, director, training & client services, Cox Automotive, wrote in the company’s 2018 Used Car Market Report & Outlook.
At this time in the car business when it is getting harder and harder to hold gross on new-vehicles, used-vehicles are becoming more critical to dealer profits than ever before. In spite of these trends, many dealers still do not have a solid grasp on their used inventory.
According to Cox Automotive, new vehicle sales in 2018 are expected to decline, while used vehicle sales are expected to increase. It is time to take a look at your balance of new and used cars and explore opportunities to improve.
What is the Right Balance?
In reference to the right mix of used-to-new vehicle sales, Cox Automotive’s Les Abrams says that a 1:1 ratio is good, and a 1.25:1 ratio is great.