Purchasing used cars directly from the public is quickly gaining popularity. However, some small vehicle dealerships are not ready to compete in the private party acquisition, citing increased competition from the big players. Yet, when done right, you have all the reasons to engage with private car sellers. Read on to know why you should consider this option.
1. You Get Lower Prices at Private Party Acquisition
Private party acquisition will offer you the best price possible. Many private sellers have an inflated opinion about their car's value since they usually research the 'asking' price ads instead of focusing on the final asking price. As a result, they give you plenty of room to negotiate, and you can also choose to walk away. In case the private seller wants to sell it urgently, you have a stronger position. Still, a private seller will not include add-ons, which would drive up the costs of used cars. As a dealer, it offers you an opportunity to make higher profit margins.
2. Private Car Sellers Have Well Kept Cars
Generally, not all private car sellers offer their vehicles in well-maintained and clean conditions. However, most car owners sell their used vehicles independently with all the service and maintenance records up to standard. Even better, the car seller will give you the vehicle history report if you have any concerns.
3. Private Party Purchases Give You More Clients
Apart from acquiring cars at a convenient price, you also have a chance of increasing your customer base. Many small dealers spend a lot of time marketing, yet this could be an opportunity to bring in that new client. When buying a used car in a private party acquisition, you interact directly with the car owner. When the client needs to purchase another vehicle, they will most likely opt to buy from your dealership. That said, when purchasing used cars, it's a golden chance to develop a rapport with the owner. When they need service or a vehicle, you will be their first option.
4. You Get More Variety
As a dealership, you want to have as many car varieties as possible. In private party acquisitions, car sellers will avail themselves a wide variety of cars. This way, you have more options to add to your collection. Note that car buyers are always looking for more variety to make comparisons before making a final decision. Therefore, by acquiring different used car vehicles, you have more chances of attracting clients.
If You Can’t Beat Them, Join Them!
If you run a small car dealership, make sure you take part in private party acquisitions to enjoy the advantages outlined in this piece. At VETTX, we use software to pull out private sellers in your locality. Our team then narrows down the best deal and keeps your team focused on it, saving you money and time. Contact us today for more information about our services.