Selling aging units by the end of November is VITAL. Book values of these units are expected to decline rapidly starting January 1st and considerably more throughout 2025. As book values decrease, the finance-ability of these units also diminishes, leading to reduced margins, tougher negotiation processes, and buyer-financing challenges.
The shelf-lives of these vehicles is nearing the "best-by" date, so it's important to address this challenge with prompt action. A prompt, positive response to these challenges will ensure a more profitable holiday season.
Rising Inventories Compound The Challenge
It's wise to start addressing areas of focus. With inventories on the rise, this means that holding onto these old units for too long could result in them lingering in stock longer than is ideal. This situation can lead to increased storage costs and the risk of these units becoming outdated or less desirable as newer models are introduced.
But this isn't a problem. It's an opportunity to apply your staff effectively and close out 2024 with some of your strongest numbers yet.
Merchandising Overcomes Aging Inventories
Marketing is vital, obviously, but it can't overcome back-burner merchandising tactics. Great holiday messaging needs even BETTER follow-through once shoppers get to your store, so let's tackle merchandising best-practices you NEED to implement this holiday season.
Showroom Focuses
Your holiday messaging should be echoed through your showroom setup and decoration. Strategize these decorations and styling with your admin and office staff.
Additionally, whatever top tier, luxury 2024 models you've got left - the best of the best should line your showrooms AND your marketing creative. That means you're able to attract buyers on 2 fronts and properly display all of your expiring inventory effectively.
Filling showrooms with these units can create a sense of urgency and encourage quicker sales, helping to clear out old inventory and make room for newer models.
Structuring Your Lot
With luxury and top-tier vehicles sprucing up your showroom, that leaves top-trim models to line the lot. Every driver passing by and everyone entering your lots will get that spectacular first impression of seeing your best looking 2024 models FIRST.
And don't forgo great signage. Decals and banners guiding your buyers to your 2024 closeout specials is crucial. Make sure they know where your deals are.
Merchandise THEN Market
Why this order? You don't want to market 24s and hide them in the back lot. Once you've structured your dealership to show off the models best suited to move quickly, push your messaging.
It is crucial to actively promote and push these older units to the forefront of your messaging. By doing so, you can ensure they are attracting what you're displaying most on the lot. This aligns your messaging and properly equips your sales agents to get these units in buyer's driveways.
This strategy involves not only placing them in high-visibility areas but also highlighting any unique features or benefits they may offer compared to newer models. This approach can also enhance the overall shopping experience for customers, as they are presented with a wider range of options and may feel more compelled to make a purchase decision sooner rather than later.
Key Takeaway
As book values decline and finance-ability becomes more challenging, the window of opportunity to move these vehicles is narrowing. By leveraging strategic merchandising, you can create a sense of urgency that not only clears out older inventory but also boosts your dealership's overall sales performance. Structuring your lot and showroom with top-tier models, aligning marketing efforts, and ensuring a seamless customer experience will drive quicker sales and stronger margins. With the right approach, you can turn this potential challenge into an opportunity, ensuring that 2024 ends on a high note and sets the stage for continued success in the year ahead.
Want to take your marketing to the next level with custom strategies designed specifically for your dealership? Reach out today for a free market analysis, and let’s work together to maximize your sales and clear out aging inventory before the year ends!
