Updated April 11th, 2024
Many auto dealers tend to fixate on moving their new car new inventory, but with a recent surge in used car movement now is the time to switch up focus. Now, it’s more important than ever to focus on moving used-car inventory in the smartest, most efficient way possible.
In ZeroSum’s latest State of the Dealer, we reported that used car inventory has dwindled 4%, falling below 1.9M for the first time since October 2023. However, this change in inventory is due to an increase in used vehicle movement, up 17% from February 2024. Most auto dealers fixate on moving their new vehicle inventory, but this increase in used vehicle movement indicates renewed consumer interest.
Dealers should take advantage of this surge in movement to focus on moving their used-car inventory in the most innovative, efficient way possible.
Even though demand is high, it’s essential for dealers to remember the following:
The uptick in used car movement does not mean that every pre-owned unit available is a gold mine. When pivoting focus to certified pre-owned or used cars, it pays to be proactive rather than reactive.
Use important data points like sales, turn rates, and pricing to smartly acquire the units in the highest demand when shopping at auctions. With that same information, you can quickly know which customer vehicles to pass up on and what deals you shouldn’t let go. If you play it smart, you can outturn the market, but if you wait to see what comes to you, you might end up with a dud.
When profit margins are high, it can be tempting to pull back on marketing spending and ride the wave of success, but with the change in used car movement and inventory, it’s time to double down on marketing. With factors such as March/April tax refunds that can boost sales temporarily, it is smart to support consumer demand in the future rather than get complacent because of recent success.
ZeroSum helps dealerships get the most out of their investment in digital marketing. With transparent VIN-level reporting, real-time market insights, and inventory-specific digital ad campaigns, dealers know which vehicles are performing best and which might need a marketing boost. ZeroSum's all-in-one advertising platform MarketAI makes these changes automatically, optimizing a dealer’s advertising spend and powering seamless, inventory-specific digital ad campaigns. With a database of active VINs and a mix of AI and real-time machine learning, ZeroSum can target your live inventory to the right person when they are ready to buy. MarketAI provides detailed data about their competition, including sales, inventory turn rate, and market share, to dealerships.
From providing dealerships with data on the average selling price of similar vehicles in their market to giving dealers accurate reflections and predictions of vehicle turn rates for both used and new cars, MarketAI gives dealers the tools to make better decisions about their inventory, pricing, and marketing strategies, leading to increased sales and profitability. Enjoy this wave of success in the used car market, and book a demo with ZeroSum today to ensure that you are well positioned to keep it going!