The Pre-owned department has been "the ugly duck" at the dealership since the major effort is on new cars. However, with the decrease on new car grosses and the implementation of the CPO programs by the OEM’s the Used car profitability is the "good news" in the industry, and it is contributing substantially to the profitability of the dealers. The key is to treat “Used Cars” as a separate “Profit Center”.
Increase your ROI
The program teaches your managers to focus on KPI’s measuring inventory TURN, mix and having an aggressive appraisal policy to increase your ROI (Return on investment) above 105% per year, always searching for the ideal combination inventory mix to optimize the turn. Additionally, the profile of your Pre-owned manager should be around 60% managing financial KPI’s and 40% Sales and closing ability.
Used Car Profit
Be part of the change. We have implemented the strategy of Seminuevos Profit Center in more than 200 dealers, generating a sustained growth of the department and promoting the sale of new cars.