With sales at all-time highs for the past couple months at Powersports and Motorcycle dealerships across the country and new inventory allocations remaining low for the foreseeable future due to a lack of production, it’s critical to change the strategy at the dealership and focus on used inventory. The challenge comes with how to find this inventory. Traditionally, we would take used inventory on trade, but with lower new vehicle sales, the trade-ins are dwindling. The simplest of answers is to attend auctions like NPA either physically or online. Below are 5 strategies outside of going to the auction.
- Build a Relationship with the local automotive dealerships. Auto dealers are constantly asked if they can take a motorcycle or atv on trade. Their typical answer is, “we don’t”, because they don’t have a source to move them. An easy way to do this, is to take your card to all the local dealers around you. You will be the one and only call for buy figures in the future and it could lead to a handful of more units bought each month.
- Leverage ebay for new listings. In the motorcycles category, there were 148 new listings added in the last 24 hours across the country and that was just motorcycles! I am sure this is a combination of dealer and by owner, but that is a lot of opportunity to tap into. You can set up searches by vehicle type, make, and distance if you don’t want the entire country and save the search. From there, just add email alerts when new inventory is added. You will have a daily feed of new inventory to scan through in under 15 minutes to see if there is anything to buy.
- Leverage Cycle Trader for local classified listings. Similar to ebay, you can do a search (either locally within XX miles of your zip or nationally). On the left side bar, click on seller type and change it to private seller. You can then save the search and subscribe to email alerts. You can do the same on ATV Trader and PWC Trader.
- Facebook Ads. Target customers that are interested in motorcycles (or PWCS, etc) with an advertisement to get a valuation on their bike. You can drive this traffic to your website trade in form or Trade-In Widget. LotVantage leverages these ads for dealerships across the country to put trade in forms on steroids with submission rates at 4x without advertising (budgets around $500/mo).
- Store Buying Events. Host a buying event at your store on a Saturday and appraise every bike that comes in. These customers have a high intent and desire to sell their bike. Build an event on Facebook and put an advertising budget behind it. You can check out the LotVantage case study HERE on how we helped a H-D dealer buy 16 bikes in 1 day.
We’ve learned a lot of things through these past few months and have adapted many strategies to initially keep business afloat and then capitalize on the influx of business. It is now time to adapt to what will be our new normal for the second half of the year. Building a used inventory strategy can be the backbone to your success.