CARS

[lumberjim]

Originally posted by dar512
What percentage of trade-ins do you keep to sell at your dealer? Don't some get sold off wholesale, or traded to other dealers or some such?

56.2% of our used.......

sorry.

dar,
it depends entirely on the car in question. we tend to stock our make of vehicles. People go to a dealership because of the brand of new cars they sell . It makes sense, then to stock the same type of cars on the used lot, so that when someone doesn't want to sacrifice 5 to 6 thousand in the first year's depreciation, or can't afford new, they can be switched to newer, excellent condition used cars. Also, we have access to lease returns, closed auctions, and floor plan accounts from the manufacturers financial arm.

Floor plan is like a revolving car loan on a very large scale that the dealer uses to finance the cars on their lot untill they sell. They then pay the amount "floor planned" off with the "funding" of the customer's bank contract, or cash.

We have two main wholesalers. One guy buys anything from a 91 Lumina to 03 Porsche to a Harley Davidson Motorcycle. He places cars at other dealerships. we buy jeeps from him occasionally. He's got it going on.

The other deals mainly in "sleds" .....older cars that he then takes to those little shady looking used car lots that do such a service to our industry's image.