Breakeven – Know It and Manage It

If you had more cars on the lot – could you sell them? Simple math suggests that if you sell more cars, dealership profits increase. If it was that easy we would all be retired and relaxing on our private island. One thing is for sure. You have to know your numbers, especially time to breakeven. Breakeven, sometimes referred to as “days on the street,” is the number of weeks before you recoup the cost of the vehicle. This simple math can triple your profits….Read Article

BHPH Dealer – Tips for Selling to Millennials

More than $1 Trillion in Purchasing Power

Mr. Gary Page, chief executive officer of SDA:  According to research from Autotrader, Millennials are the most diverse, most educated, most socially conscious and most tech-savvy group the world has ever known. While there are dozens of conflicting research reports available about why or why not millennials are buying cars. One thing is clear, these buyers are different, and BHPH dealers should be prepared to sell to this large demographic. They are getting more mature, financial capable, and their needs for vehicle ownership is increasing as they age. Even though the BHPH millennials have unique circumstances, they tend to share many of the same attitudes.  Click here to read the article.

USED CAR NEWS – SDA Sees More Demand

Used Car News:  How has your company performed this year?

Mr. Gary Page, chief executive officer of SDA:  This year has been pretty busy.  We had one competitor leave the business and there have been fewer funds available from banks.  That’s been good for our business.  If capital is tightening up, that is good for us.  The demand side has been strong.  More dealers are moving into buy -here, pay-here.  It’s always slower in the summer, especially in Florida, but our numbers are up.  Everyone should be doing well right now.  Click here to read the interview.

 

2018 – The Year for Healthy Growth

You’re starved. You order the large meat lovers. You only need 2 slices, but you eat the whole pizza. The next day is tough and you knew it would happen. Habits like these are unhealthy and can often lead to terrible consequences.  Funding your Buy Here Pay Here dealership is much the same. History suggests that leveraging the business too deeply through excessive borrowing can be unhealthy if not deadly. Dealers need to retain part of their portfolio to fund the business and protect for the unknown. [Read more…]

Customer Loyalty – It’s NOT about the Best Price

If recent research is accurate, loyal customers provide 60-70% of annual revenues.  Traditionally, Buy Here Pay Here dealers invest most of their time and a significant part of their budget towards marketing and acquiring new customers.  If you consider these facts, we may be miss-allocating precious time and money. [Read more…]