Maximizing Profits with 7 Strategies to Sell Old Inventory in the Vehicle Dealership Industry

The vehicle dealership industry is currently navigating a period of unprecedented change. Factors such as rising inflation, ongoing challenges from the COVID-19 pandemic, and evolving consumer preferences are reshaping the landscape of vehicle sales. These shifts are compelling vehicle dealerships to reevaluate their traditional sales strategies, particularly as they confront the persistent issue of aging inventory on their lots.  However, this challenge also presents a unique opportunity when looking for strategies to sell old inventory  

With the right strategies, vehicle dealerships can transform yesterday’s unsold vehicles into today’s hot-ticket items. This article explores effective methods for revitalizing sales and turning old inventory into attractive, profitable deals. Let’s dive into the innovative tactics that can help you succeed in this dynamic market environment. 

1. Minimum Commission

Incentivize your sales team by offering minimum commission or a spiff for moving older vehicles. This strategy aligns the financial goals of your team with those of the vehicle dealership, pushing them to actively promote aging inventory for faster turnover. 

Salespeople often focus on vehicles that earn them the most commission. With attractive bonuses attached to older models, you harness their ambition to give extra attention to the vehicles that need it most. 

2. Email Marketing Campaigns

Effective email marketing campaigns are crucial vehicle dealership sales techniques. They keep customers in the loop and position older inventory as desirable. One campaign worth trying is equity mining, which identifies customers who can trade up to a new vehicle with favorable financing. These campaigns have higher conversion rates because they tap into existing relationships. 

Use marketing automation to personalize consistent campaigns that nudge customers toward a purchase decision. Promote trade-in bonuses, lower payments, and exclusive offers to ensure your older inventory is always top of mind. 

3. Paid Ads as Strategies to Sell Old Inventory

Paid ads expand your reach and draw fresh eyes to older inventory. Link ads directly to your inventory page and consistently target new buyers through monthly campaigns to keep your vehicles in the spotlight. 

Social media platforms are also ideal for targeted, localized campaigns. Facebook or Instagram ads let you geotarget potential buyers and sharing video walkthroughs or testimonials can boost engagement and credibility. Engage your local community by sharing vehicle dealership events or special promotions that make old inventory irresistible. 

4. Focus on Salesmanship

Salesmanship is crucial to clearing old stock. Train your team to emphasize the unique features and benefits of each vehicle. Confidence and comprehensive knowledge help address customer concerns while showcasing the value of each model. 

Highlight cost savings and practical features like fuel efficiency and reliability. Guide your sales staff to anticipate objections and creatively position the vehicle’s best qualities, whether it’s a distinctive look or unique technology. Personalizing the pitch ensures a positive customer experience. 

5. Leverage the Internet

Harness the reach of the digital world to sell old inventory: 

• Online Listings: Provide comprehensive details and competitive pricing for every vehicle. High-quality photos and engaging descriptions will capture potential buyers’ interest. 
• Social Media: Showcase older models with compelling photos, videos, and customer testimonials on Facebook and Instagram. Social engagement fosters word-of-mouth marketing that can amplify your reach. 
• SEO: Optimize your website with relevant keywords to improve search visibility. Consider search phrases like “affordable used sedan near me” to capture potential buyers browsing for their next purchase. 

An optimized online presence ensures your vehicle dealership remains relevant and appealing when customers search for deals. 

6. Special Promotion Strategies to Sell Old Inventory

Creative promotions provide urgency and excitement around old stock. Offer limited-time discounts, seasonal incentives, and holiday specials that encourage quick decisions. 

Give promotions a catchy theme to resonate with your audience. A “Flash Sale Friday” or “Year-End Clearance Event” can draw attention and boost engagement. Make sure these are promoted aggressively across digital channels to create maximum buzz. 

7. Lower Price

If all else fails, consider lowering the price to make older vehicles more appealing. This step should be taken cautiously and strategically, after assessing market trends to avoid unnecessary profit loss. A gradual price reduction strategy can be effective. Incremental drops over a set period can prevent a sudden steep cut that might signal low quality. Monitor competitors to ensure your pricing remains competitive. 

 

These strategies to sell old inventory can transform yesterday’s vehicles into valuable sales. From harnessing your team’s motivation to leveraging digital marketing, it’s all about aligning your approach to the customer’s mindset and creating urgency through salesmanship and promotions. 

For more in-depth insights from industry experts, check out this episode of the Dealercast Podcast for a detailed roadmap to optimize vehicle retail.