Earlier this week the New York Times published this article with the headline “After Running Hot, Market for Used Cars is Cooling?” Yet, I wonder if the market for used cars is really cooling off? It depends on what your definition is of a “hot market.”
When most people think of a “hot market” they think of high prices and lots of sales. So when most people think of a cooling market, they think of lower prices and fewer sales, but as it turns out, that’s not what’s happening. [keep reading]
Things have changed quite a bit for the auto industry in the past 150 years or so. We’ve gone from 20 and 40mph vehicles to cars that go over 265mph and from dust jackets and motor goggles to voice activated climate control. Just look how far Bentley has come:
Instead of flipping the pages of a catalog with used cars for sale, shoppers are using Mojo Motors to ‘Follow’ their favorite cars, receive alerts when prices drop and see how many other people are ‘Following’ car they want.
We appreciate innovation and to survive over one hundred years, these 10 dealerships have adapted to the changing industry. They’ve jumped onto new ideas and continued to push forward. Case in point: some of the top 10 oldest dealerships in America according to NADA started out as blacksmiths, woodworkers or bicycle makers. They adapted to suit the needs of their customers, and that’s what we’re all about, too. [keep reading...]
You found the used car or truck you want on Mojo Motors. Now what? What most people don’t know is it can take 24 hours for online inventory listings to update. That means a car that is listed as “available” may have been sold already. The vehicle that looks like it’s available today, may have actually been sold yesterday. Spare yourself the heartbreak and wasted time by calling the dealership.
I’ve heard some horror stories of people driving hours to a dealership for the car of their dreams only to find out it isn’t available. I don’t want you to make the same mistake because it leaves shoppers angry and bitter while buying a used car or truck. All of this can be avoided by knowing these three things before calling a dealer. [keep reading]
Take a quick look around your dealership. Look long and hard at both your lot and your showroom. Do this and you will quickly see where much of your investment lies…in your pre-owned inventory. If you are willing to invest a significant amount of time and money into your pre-owned vehicles, then the best thing you could do for your dealership is research what kind of cars you are stocking, what the market says about these cars and where you are getting them.
First, what kind of inventory are you stocking? Having looked at the data using tools like AAX and vAuto, I have come to a conclusion. Dealerships will very quickly find themselves in a bind when their pre-owned departments are stocked too heavily with late model vehicles. It’s important to have a healthy balance. I have seen far too many stores with late model vehicles making up 50% or more of their inventories this increases turn rate and the amount you are spending in marketing.
So what does the market say? The table below shows us a breakdown of VDPs (VDPs showing in 10,000 units) in relation to each calendar year. [keep reading]
As the Business Intelligence Manager at Mojo Motors, I spend a lot of my day looking through data attempting to find valuable pieces of buried information. The primary feature of Mojo Motors is alerting car shoppers when dealers drop prices on their used cars and trucks. Dealerships only want vehicles to stay on their lot for about 60 to 90 days. If they can’t sell the vehicle in that time, they send it to auction instead. Before this, however, they will continually drop prices.
Mojo Motors alerts members by email every time a price drops on a vehicle. Rather than browsing the web all day, shoppers can track the prices of vehicles they’re interested in and receive an email when a car drops into their price range. The real question at this point is how often do vehicles drop in price and what are the best months for finding great deals on used vehicles? Here is where I can help.
This graph shows the average number of price drops per vehicle on Mojo Motors in 2012. Dealers drop the price of a car an average of 1.32 times per month, but some months it happens more, and others less. Between July and October dealers drop the price of their cars most frequently, whereas January through March dealers drop their prices least frequently. This pattern matches the sales pattern of used cars. [keep reading]
As my long-time readers know, I’m always seeking out resources that help car shoppers save money. This week, I want to alert you to a new web site for used car shoppers that I found to be very unique, useful, and best of all – has the potential to save you lots of money. [keep reading]
You know what we hate? Filling out contact forms to get help using a website or selecting fifteen different options when trying to get tech support on the telephone. Sometimes you just want to talk to someone. Like right now. This isn’t to say email can’t be quick and efficient, but when it comes to buying a car, the face-to-face human element is often required.
MojoMotors.com might be a website, but real people work at the auto startup. We have a personality and want to make personal connections. It’s why our phone number isn’t hidden somewhere on our website, but displayed on the bottom of every page. You can’t miss it. Plus, we really like answering questions about what kind of used car or truck you should buy.