From time to time, Im asked to explain why I dont believe that a dealers history of used vehicle sales is a reliable guide to determine the cars to acquire and sell in the current market.
Ill often begin my explanation with an important caveat: I do not dismiss the value of history to provide clues into the present market. There are some vehicles in some markets that can rightly be regarded as old reliablescars that, time and again, prove to be profitable, retail winners for a dealer.
Similarly, some dealers have carved effective market niches for select types of vehicles/segments. In such instances, past sales history can help these dealers continue to feed a market niche.
Beyond these scenarios, however, I believe that dealers who rely on history to guide their choices for acquiring and retailing used vehicles are unnecessarily limiting their retailing and profitability potential.
Dale Pollak, president and founder of vAuto, Inc, shares his opinion of the relevance of including dealer history in their used vehicle strategies and why it may not be advisable to rely on history when establishing strategy. [Read more]
The Article 3 Reasons History Fails as Foundation for Used Vehicle Inventory Strategy appeared first on Automotive Digest.