MAKING PRE-OWNED FRONT & CENTER

Presented by:

GART SUTTON

MAKING PRE-OWNED

FRONT & CENTER

WELCOME!

• Who is Gart Sutton?

• Who is GSA?

MAKING PRE-OWNED

FRONT & CENTER

Why should you be in the pre-owned business?

The Five Critical Reasons:

1. Pre-owned sales offer you a higher gross profit potential than new.

2. Pre-owned helps you to increase the volume of your new unit sales.

3. Stocking pre-owned products increases your floor traffic.

4. Selling pre-owned increases your sales of F&I products.

5. Selling pre-owned increases your parts and service sales.

MAKING PRE-OWNED

FRONT & CENTER

Current Benchmarks (Metric)• Total Preowned Gross Profit Margin: Above 20%

• Preowned–to-new Ratio: Over .5:1 (2 new to 1 pre-owned)

• Yearly Inventory Turns: 3 – 4

• Retailed versus Wholesaled: 75% retailed

Actual examples from dealers who are doing a good job:

New Dlr A Data

Dlr B Data

HD Dlr Data

New M/C Gross Profit % 11.3% 14.5% 19.7% New ATV Gross Profit % 7.7% 16.2% Preowned

Preowned M/C GP % 26.0% 26.4% 15.6% Preowned ATV GP % 25.6% 27.9%

MAKING PRE-OWNED

FRONT & CENTER

The Rules of the Game

• What is the #1 rule of profitability?

• What is “The Formula?”

• What does “Market Value” mean?

• When is it “used,” and when is it “pre-owned?”

MAKING PRE-OWNED

FRONT & CENTER

The 5 Steps to ProfitabilityStep 1: Acquisition

– Where do they come from?

Step 2: Appraisal

– Rule 1: Always use an Appraisal Form

Step 3: Reconditioning

– How soon?

– How much?

MAKING PRE-OWNED

FRONT & CENTER

The 5 Steps (cont’d.)

Step 4: Merchandising

– Display

– Accessories

Step 5: Advertise and Promote

– Promote your business as well as units

– What are some effective promotions?

MAKING PRE-OWNED

FRONT & CENTER

Sales Tips

1. Hire and train an effective sales team

2. Follow a structured sales process

3. Treat the pre-owned buyer properly

4. Clarify sales manager duties

5. Provide goals and incentives

6. Consider a separate pre-owned sales staff

MAKING PRE-OWNED

FRONT & CENTER

Thank you!!

Contact us: 

Gart Sutton

www.gartsutton.com

info@gartsutton.com 

(615) 465-2008