"Until recently, automobile manufacturers and dealers have mainly focused on their new vehicle business with the exclusion of used cars, often viewed used cars as a byproduct ... Moreover, the added quality and reliability of used cars changed the consumer attitude and increased the sales of the used passenger cars. Investing in used car management ..." - Grand View Research, September 2020.
Where there is a success in business, anticipate that government will step in.
That is especially likely with the return of Democratic Administration this January.
Car dealerships in the U.S. have to be proactive in protecting this lucrative new niche. As Grand View Research points out, used cars are no longer a necessary sideline for the business to operate. That is, dealerships had to be willing to take in the used car as a trade in order to sell the new one.
Fischer Honda in Ypsilanti, Michigan seems to be an early adopter in what Grand View Research calls "investing in used car management." That's no surprise. It has to protect and enhance the Honda brand.
The dealership had designed the position of Pre-Owned Manager. That is Curtis Gambrell. His responsibilities are broad.
On a macro level he oversees the inventory. It's large, extending from mini Smart cars to giant SUVs. He also has to ensure that the sales team has a service mindset - and the behaviors to go along with that.
On the micro level there are the million details which are part of the acquisition, marketing, sales and registering of pre-owned cars. In this era when pre-owned cars are in demand that has become more complex.
For example, attracted by the Honda brand and a super-special discounting, a resident of Illinois might come in to the MI-based dealer for new car. The trade-in, of course, is registered in IL. The new car would be registered first in MI. The person buying that trade-in could have come in from Ohio. Three states are involved in those transactions. Daily, Gambrell is on the phone with state Department of Motor Vehicles sorting all that out.
Also on a micro level is maintaining what might be called "High Emotional Intelligence" encounters with all purchasers, both those who bought new and those who bought pre-owned cars. They are the pipeline for the future of the dealership. Not only could they bring in their teenager or spouse to kick the tires. Their word of mouth (or, more accurately, of mouse) is key to sales. Actually, word of mouth has been so important in marketing that, even way back in 2010, McKinsey issued a white paper on fresh ways to measure it.
What should dealerships anticipate in new kinds of regulations? The list could actually be infinite. It's not premature for them to talk with their lawyers. Green will likely be an issue.
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