By and large most dealers and managers have come to understand it’s not the big that will eat the small but the fast that will eat the slow. We all know the faster we can get a car on the lot and online the more we increase our odds of making a respectable profit.

If you are committed to 60 days or less (which you should be) then any days in the cycle in which the unit is not available for sale is a killer.

The question often comes up, “When does the clock start ticking?” Does it start with the acquisition, the day you own it, or does it start when the car goes on the lot/online?

Let me make this as clear as I possibly can. It starts the moment you own it. Period. No exceptions, no ifs, ands, or buts.

The two issues that often come up are the delay in getting vehicles from auction sites and those units we can’t sell for legal reasons such as we don’t have the title as required by law in some states.

10 Things To Help You Win The Clock Ticking Game:

1. If you are in a state where there are title issues there has to be a clear line of communication with the office on a minute by minute basis to alert you when the title arrives. Any breakdown in communication is costing you money. Staying after these title issues cannot be left up to chance. Somebody has to take ownership of chasing after the titles.

2. It’s a fact that you are having to go further out of your area to buy cars at auctions, but you have to be selective and know what the timeline is that you are dealing with. Anything you can do to reduce transportation days, the better. You might even want to consider paying the trucker a bonus for fast delivery.

3. How hard are you trying to buy cars in your own market? Do you have a procedure set up so that when someone comes in and wants to sell you a car that you give them the full routine with a written appraisal? Does your website have a self-appraisal link so the customer can get real numbers from you quickly.

4. Mine your customer base. For sure, you know which cars you always do well with. Often they are right under your nose hiding within your CRM. Vin Solutions has some great tools for finding those vehicles and giving you a chance to buy the car, trade the car or ultimately sell the owner a new car.

5. How about a unique and separate website that drives the customer to your website to sell you their car? I saw this one in the Tampa market a few months ago: “SellYourCarToUs.Com.” It belongs to a very nice used car operation over in Orlando, FL. It’s imperative that when they land on your site that there be an easy, one click button to get them to a self-appraisal. Check it out. You will be impressed.

6. If you’re in a market with CarMax consider promoting that if the customer brings their CarMax appraisal to you within 7 days of the appraisal, that you will give them more for their car than CarMax or give them $100 cash if you can’t beat CarMax’s offer. What do you have to lose? Suppose you buy 10 extra cars this month and also pay out $1000 in loser fees. Do ‘da math, what did you make on the 10 extra cars?

7. Increase your odds of success and efficiency when buying online by using Stockwave. This may well be one of the biggest game changers in the history of the car business. Take a look at this short video. CLICK HERE

8. Fix your service and recon issues. I know it sounds like I’m picking on service a lot and that’s not my intent. I just know in most dealerships it’s the same old, same old. How many total days are being wasted from the time the car is acquired until the time it gets on the lot and online? In today’s age of speed you have to find every day that you can if you’re gonna win the “meter game.”

9. Make sure you include in your “save-a-deal” meeting every morning a list of all vehicles that are either in transit or tied up due to title issues. The more you pick up the intensity on these units the faster things will happen.

10. Pick up the intensity level. Not just you, but the entire team has to understand that any day that a vehicle is not on the lot/online it’s costing the dealership big money.

Pop Quiz:

When does the clock start? When you own it.
What can you do to improve it? Re-read 1 thru 10.

Control what you can control. That’s all I’m gonna say, Tommy Gibbs

Dealers all over the country have a big push on buying cars from the public.

Many are spending thousands of dollars on advertising, marketing and software in an effort to find more and better cars at their front door.

Some have even hired an “Equity Specialist” who has a full time presence in the service department and customer lounge in order to solicit customers with an offer of, “Would you like us to appraise your car for you?”

Some dealers have even started an “exchange program” offering the customer a new or newer car for the same payment that they currently have.

It’s all a waste of time. Yes, it’s a waste of time if you haven’t put meaningful processes in place that are customer friendly and effective for you and your team.

Seven Mistakes:

Mistake #1: The tendency when someone says, “Yes I’d like my car appraised,” is to drop them off at the used car manager’s desk and leave. The person making contact with the customer needs to remain the contact. Though somewhat modified, there needs to be a “full routine” presentation by the contact person to each and every customer that says yes.

Mistake #2: Most dealerships only want to buy what they know they can retail. If the program is going to be effective you have to be willing to buy anything from a stone piece of junk to a very expensive luxury car. CarMax has built the reputation that they will buy anything. Bring it to us and get a number. That should be your mantra.

Mistake #3: You try to steal it. What are you thinking? Get real. Get the unit. You will pay far more for it at the auction than you will at your own front door. Step up. Don’t be stupid. You need to own that unit.

Mistake #4: Giving verbal or handwritten appraisal quotes. Whatever you hand the customer needs to be computer generated in the most professional manner possible. The quote should be good for a minimum of 7 days.

Mistake #5: Not paying the sales person or contact person based on the acquisition. If you want staff members to give the “full routine” then you need to pay them just as if they sold a car. The full routine might actually inspire the seller to buy a car from you today or months down the road. Think about how much more efficient and cost effective it is when you can buy a car at the front door. The savings on the auction fees and transportation cost alone make it more than worthwhile for you to pay a reasonable commission.

Mistake #6: Someone hands the customer the appraisal and says, “Just let us know what you want to do.” The manager and the contact person need to do a complete review/presentation of the appraisal, answer questions and ask for the business.

Mistake #7: No one follows up with the customer. There should be a system in place to follow up within 24 hours, 1 week, etc. even if it means upping the ante $500 or so to acquire the car. There’s an old and very useful saying in the car business, “Follow them till they buy or die.” That saying applies to you buying their car as well.

Eliminate these 7 mistakes and you won’t be wasting your time, energy and money. That’s all I’m gonna say, Tommy Gibbs

The summer is over. It has been a pretty good year for most of you. It’s easy to become complacent when times are good.

Dealers make the most money when they are coming off tough times. When things are tough, dealers get back to the basics and grinding it out. As business gets better they are in a great position to make a lot of money because they have cut out all the fat.

But as business gets better, dealers tend to get lax with spending, processes and their daily disciplines.

Ask these questions of yourself:

1. Have you dissected every expense on the expense page?
2. Do you have too many people in the wrong places and not enough in the right places?
3. Is your selling system the selling system you think you have?
4. Are you evaluating every trade that you don’t make?
5. Are you holding a daily “save-a-deal meeting?”
6. Are you doing a trade walk?
7. Are you utilizing my “life cycle management process?”
8. Are you evaluating all the wholesale pieces to see if they have life in them?
9. Do you have a photo booth and is your website the best it can be?
10. Have you shopped your own dealership? Have you shopped CarMax?
11. Do you hold your staff accountable?
12. Can you shorten your selling process?
13. Are you using vAuto to buy and price your units correctly?
14. Does your current inventory level match your seasonal selling rate?
15. Are you still doing business the same way you did 10 years ago?
16. What’s the turnaround time for a used car from the time you own it until the time it’s ready for the line?
17. Are you leading the way or are you talking the way?
18. Are you mining your customer base for nice used cars?
19. Are you relying on packs to save your gross profit?
20. Are your pay plans old, outdated and not in tune with today’s market?
21. Is your volume and gross going up or down?
22. How many turns a year are you getting with your used inventory?
23. Are you tracking ROI/GAP?
24. Are you forecasting or “hopecasting?”
25. When was the last time you let Tommy Gibbs coach you?

These are great questions you should be asking yourself. That’s all I’m gonna say, Tommy Gibbs

I’m sure you do. And, I’m sure if one of your children was sick you would keep a close eye on that child until they recovered
from their sickness.

I’m appalled at how many used car managers don’t actually know where their sickest children (oldest old used cars) are.

Often when I’m reviewing inventory with a used car manager I’ll ask them to tell me about certain cars in their inventory.

On some of the cars I’ll ask them, “Where is it?” They will say, “It’s in the inventory.”

No,” I’ll say, “Where is it? Where is it parked?” Typical comments are, “I’m not sure”, “I think it’s out back”, “I think it’s in the service department”, “I think it’s in clean up”, “I think someone is driving it”, “I think it’s sold.”

You’re not being paid to think. You’re being paid to know. The great used car managers know where every car is at every moment of its life with their store.

The great used car managers know where all their children are, especially their sickest ones, regardless if they have a 40 car inventory or a 400 car inventory.

They just know. You wanna know why they know?

They know because they care. They know because they are great parents. They know because the more they know about where their children are, the more they can protect them.

They can protect them from the evils of the world such as becoming aged, poor ROI, and slow turn. Show some love. That’s all I’m gonna say, Tommy Gibbs