Should You Focus On Used?

When it comes to the automobile business, we often have a very short memory. There are many who have forgotten what it was like back in 2008-2009. The better business gets, the shorter the memory we seem to have.

For some of us, it seems like it was just yesterday, and I can clearly remember how depressing the NADA Convention was in New Orleans in 2009.

There were some recent stories in Automotive News about how dealers were able to survive during those tough years.

One in particular that stood out for me was on Denny Amrhein, a managing partner at Grogan’s Towne Chrysler-Jeep-Dodge-Ram located in the Toledo, OH market.

The header in the article: “A new philosophy: Turning cars in 30 days.”

To quote Mr. Amrhein, “In 2008-09, right during the recession, my used-car manager came with a new philosophy of turning cars in 30 days – 60 days max,” Amrhein said. “We weren’t into making a lot of money on the cars -we were into turning them, so we could turn our cash fast

His store went from selling 60 used cars a month to 150-175 per month. Winning.

The way he was making money in 2009 is the same way you make money today. Turning your inventory is always a solid fundamental business principle of the used car business.

Back in 2008-2009 dealers were losing their franchises and were left with some nice empty showrooms. Many of them tried to turn those empty showrooms into used car operations. A few succeeded. Many failed.

They failed because for so many years they had ignored their used car business. They had made their money on new vehicles and paid little or no attention to used.

What better time to get your head into the used car game than right now when business is good?

You have very little control over your new car business. You can always control and make a living selling used.

We’re blessed to be new car dealers. When you focus on used, you increase your odds of remaining a new car dealer. That’s all I’m gonna say, Tommy Gibbs