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How to Manage and Organize Your Dealership?

Prepare your used car dealership for success by mastering dealership management and setting the foundation for long-term profitability.

 

Managing a successful used dealership business requires more than just selling cars—it’s about having the right structure and a solid management plan in place.

So, let’s see how you can improve your dealership management and boost your dealership performance. We’ll start with the foundation of every successful business: clear goals and objectives.

Set clear goals and objectives

Running a business with no objectives is almost like driving in a new city without a map. There are some landmarks to navigate you, but you’ll still find yourself lost without clear directions.

That’s why you should set specific goals to guide your dealership’s success.

For instance, if you’re running a newly-opened used car dealership, you could start with a goal of selling ten vehicles a month. Some other objectives that can help you grow include:

  • Growing your customer base by 20% within the first year
  • Keeping customer satisfaction above 90%
  • Maintain an inventory of 20 cars
  • Achieving a 15% profit margin by the end of the year
     

No matter what your needs are, goals like these give your team something clear to aim for and make it easier to track progress. Speaking of your team, that’s another vital component in your dealership structure, and we’ll talk about that next.

Build a high-performing team

Whether you’re a small operation or have multiple departments, hiring the right people is crucial for your dealership performance.

That’s precisely one of the key aspects of dealership management: you should make an effort to hire staff who are skilled and reliable, starting from your office team and all the way to your sales personnel.

Only that way will you be able to receive positive reviews like this one, praising your professional team.


It’s not just about being friendly to customers—your team should also be able to close deals and bring in revenue. Hiring people who can build relationships with customers and seal the deal is what will keep your dealership profitable.

Customer-centric approach

Being customer-centric means making it easy for customers to buy from you. Whether you’re selling cars to businesses or dealing in parts, your goal should always be to simplify the process for your buyers.

We believe in this approach ourselves, and that’s why the visitors on our website are greeted with an overview of a clear and simple buying process, from browsing to bidding and pickup.


That way, we ensure that our customers have a smooth buying experience that keeps them coming back.

Utilize a robust inventory management system

Another crucial part of an organized dealership is keeping your inventory in check. As we like to say, inventory management is all about having the right cars at the right time.

If you’d like to avoid problems with overstocking and understocking, you could make inventory management easier by using specialized software.

Platforms like vAuto or MotorDesk can help you track your stock, monitor sales trends, and even suggest when it’s time to restock or rotate your inventory.

Image source: vAuto

 

With the right inventory management system, managing your cars becomes much more straightforward, saving you time and keeping your dealership running smoothly.

Provide only the best for your customers

And now for the easiest win: the quality of your stock. If you’re looking for advice on how to run a successful used car dealership, your best bet is to provide used vehicles that your customers can rely on.

Your dealership may be focusing on luxury models, affordable options, electric cars, or refurbished vehicles. Regardless of your specialization, if your stock is top-notch in terms of quality, you’ll be able to stand out from the competition.

Of course, managing a successful dealership starts with sourcing high-quality vehicles, and that’s something we can help with.

 

Source high-quality used cars with eCarsTrade

The fact that you’re reading about dealership management tells us that you value efficiency and profitability.

Browsing and purchasing ex-lease cars through eCarsTrade is designed to be just that—you can use our platform to bid on high-quality cars from Europe quickly and securely.


You can choose between open auctions, blind auctions, buying at fixed prices or from our own stock.

Each of these methods will help you stock your dealership with inspected and documented cars that will attract your buyers.

Once you’re equipped with high-quality used cars, you’ll have the strong foundation you need to manage your dealership effectively.

Streamline operations for profitability

Now, there’s more to profitability than buying cars for a good price and selling them at a markup.

To truly maximize your profits, you should invest in tools and systems that make day-to-day operations smoother. For instance, you can automate many aspects of your dealership management by using specialized software.

With the right platform, you can streamline areas such as:

  • Inventory management
  • Car pricing management
  • Order processing
  • Accounting
  • Customer relationship management
     

Still, don’t forget that there are more ways to boost profitability besides vehicle sales.

Our article about the ways that dealerships make money lists offering financing options, extended warranties, selling parts, and handling trade-ins as additional revenue streams. So, don’t forget to take full advantage of these opportunities to increase your dealership’s profits.

 

Check out our guides on increasing profitability in the automotive business!

Increasing profitability sounds good? We agree.

That’s why we’ve prepared a few guides that you can use to take your dealership to the next level.

You can learn how to increase your dealership’s profitability and sales with strategies like competition benchmarking and providing post-sales support.

And if you’re looking to boost your online presence, you should definitely check out our guide on the latest online marketing strategies to attract even more buyers.

With informed, deliberate strategies like these, you’ll be on your way to growing your dealership, increasing profits, and staying ahead of the competition.

Mitigate risks with insurance and compliance

Accidents happen, and when they do, having the right insurance can save your business. Whether it’s coverage for your physical lot or the cars in your inventory, it’s important to be fully insured.

Similarly, a used dealership business has to ensure that it’s operating entirely legally.

Complying with local and EU regulations is another important step in protecting your business from legal and financial issues. This includes everything from meeting environmental standards (especially with emissions regulations for used cars) to buyer protection laws.

The European Commission does not hesitate to fine automotive companies, so it’s better to stay safe and avoid costly penalties.

Continuous learning and training - not limited to your sales staff

Training the new car salespeople who join your team is often the first thing that comes to mind.

However, continuous learning shouldn’t be limited just to those who directly interact with customers—you should also educate your support staff, marketing teams, as well as your top-level managers.


Regular training helps your entire team stay up to date with the latest sales tips, customer service skills, and knowledge about the cars you’re selling. This means happier customers and, in the end, more sales.

Data-based decision making - adjust to automotive trends

Decisions based on gut feeling may be alright in day-to-day life, but if you’re running a business, you’ll need to rely on data to guide your choices.

When you track and analyze your dealership’s performance, you can get valuable insights that help you adjust to trends and your customers’ preferences.

You should also study the data available outside your company. For instance, reading about the European EV market in 2024 can help you adjust your stock in accordance with what’s currently popular and profitable.

So, whether you’re using internal data (like sales trends) or external data (like market reports), you’ll be better equipped to make smart decisions.

If you’re looking for specific steps to incorporate data-based decision making into your dealership, here’s what you can consider:

  • Sales data: Identify your top-selling cars and slow movers. Then, tweak your inventory and marketing to focus on the cars that are really in demand.
     
  • Analyze market trends: Stay ahead by checking out industry reports and local trends, like the growing popularity of hybrid vehicles, so you can keep your dealership competitive.
     
  • Financial insights: Take a look at your numbers regularly to see where you can boost profits or cut unnecessary costs.

Dealership management doesn’t have to be complex

Running a successful used car dealership doesn’t have to be overwhelming. By focusing on clear goals, building a reliable team, and staying data-driven, you’re already on the path to success.

Throw in reliable, quality vehicles sourced at eCarsTrade, and you’ll have the foundation for a dealership that runs smoothly.

With the right cars and efficient processes, you can build a business that can thrive year after year. We’re looking forward to working with you!

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