Dealer Discovery: Why “Total Gross” Matters Most In Used Vehicles

08.01.2014

I had an e-mail exchange with a Chicago-area Honda dealer the other day that I think is relevant for all dealers, especially those who have adopted the Velocity Method of Management. The dealer asked two important questions—What’s the optimal percentage of used vehicle inventory that should be maintained under 30 days of age?, and, What’s [...]

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vAuto Dealers Shine On AutoRemarketing Top 100 List

07.29.2014

It made me happy the other day to peruse AutoRemarketing’s Top 100 (Franchised) Used Car Dealers for 2014. As I was going down the list, I kept seeing familiar names—stores where vAuto has played a role in helping dealers take their used vehicle operations to the next level. All told, we counted 43 vAuto customers [...]

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Forecast Alert

07.22.2014

Numerous reports are filtering in from across the country citing geese delivering root beer. Sightings have confirmed that these are not drones, but in fact real geese. Consultation with forecast analysts confirms the fact that there is a 100% chance of root beer delivery from coast to coast. Experts advise all affected populations to immediately [...]

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Are You Asking The Wrong Question About Used Vehicle Reconditioning?

07.17.2014

I received a note from a Velocity dealer asking for guidance to trim $100 to $200 from his reconditioning costs, part of a broader effort to increase used vehicle profitability. It should be stated that this dealer is a smart operator who’s already wrung significant costs out of his reconditioning processes. He’s reduced mark-ups on [...]

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Achievement, Ambition and Blind Faith with Brian Benstock of Paragon Honda

07.16.2014

Last Friday I had the privilege of conducting a mid-year review with the management team of Paragon Honda, Paragon Acura and Honda of White Plains, New York. All three of these dealerships are under the management and control of Brian Benstock. My experience with Brian and his management team on both Friday and Saturday were [...]

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3 Ways The “Profit Per Day” Metric For Used Vehicles Falls Short

06.30.2014

Several dealers have asked me recently about the value of measuring the “Profit Per Day” of their used vehicles. As I understand it, the metric is determined by dividing a unit’s front-end gross profit by its days in inventory (e.g., a retail unit that generates $1500 in profit after 30 days would translate to $50 [...]

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AutoSuccess Podcast: 13 Minutes Of Velocity Fundamentals

06.27.2014

AutoSuccess has posted a 13-minute podcast that covers several used vehicle pressure points for dealers and my views on how they should be addressed to maximize sales and profitability. You can download the mp3 or listen to the podcast here—it’s a quick refresh of Velocity fundamentals for interested dealers.  

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A Cause For Concern For Dealers Who Over-Rely On F&I Income

06.23.2014

I’ve been struck by a couple trends emanating from dealer F&I offices: 1. Loans are longer. A recent Automotive News report noted that the average length of a car loan runs 66 months, the highest on record for Experian, which tracks the data. In addition, the report calls 72-month loans the “new normal,” and loans [...]

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A 3-Step Plan To Prepare For The Sales Model of The Future

06.19.2014

I’ve been getting more inquiries lately from dealers asking about the merits of a one-price sales environment at their dealerships. The dealers have seen reports in automotive trade press about groups like Sonic Automotive adopting this non-traditional approach to provide a more efficient, cost-effective and customer-friendly process for selling new and used vehicles. In some [...]

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Growth, Speed and Future-Focused Insights From A “Black Belt” Dealer

06.06.2014

I love it when I have the honor of talking shop with Brian Benstock, general manager and vice president at Paragon Honda and Paragon Acura in New York. As an early adopter of the Velocity Method of Management®, Benstock comes as close as anyone to perfecting the art and science of retailing used vehicles successfully [...]

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