The used car market has turned into the ultimate test for the true hunters in the retail space. Among record prices, dealers are making tough decisions and having to come up with unique strategies for success. The used vehicle index is up nearly 50%, and instant cash offers drive a red hot market. The chip shortage impacting new vehicles is causing used car prices to soar across the country. As people return to work, the demand for used cars is back.
Dealerships are looking to offer their salesmen “spiffs” to find used cars off of Facebook and Instagram and turn their sales teams into buyers. Another tactic that dealerships are turning to is actually requiring anyone looking to purchase a new vehicle to have a trade-in. New vehicle inventory has dropped to nearly half across America for Car Dealerships. There is a clear shortage of sellable inventory. Record wholesale prices at actions aren’t helping these dealerships either. One Dealership in Michigan is offering monetary incentives to get appointments for trade-ins. It’s becoming a bit of a frenzy. Such efforts have become more crucial than ever amid an overall shortage of sale-ready used vehicles coupled with unrelenting demand from customers.