If the chaos of the last four years has taught us anything, it’s that predicting the future comes with uncertainty. Still, there’s plenty of data to suggest that 2024 will bring stable wage and credit conditions that keep demand strong. Cox Automotive expects small gains in the used-vehicle market, despite limited availability. These top tips can help independent dealers seize the opportunities those trends may create.

“Our goal is to provide dealers with advice and solutions that help them thrive in any environment,” said NextGear Capital President Scott Maybee. “Our team members work alongside independent dealers every day, providing expert insights to help them make more informed decisions and drive profitability for their business. These tips reflect the knowledge, expertise and value they bring to every client relationship.”

• Share your services. Let buyers browsing your online offerings learn as much as possible from your vehicle photos. For example, do you buy cars off the street and not require the seller to buy a car? Do you provide extra services? Adding text with images ensures the viewer gets all of your messages.
• Respond to your Google reviews. If they’re good, thank the reviewer. If they’re not so good, address the concern and show empathy. You are being evaluated just the same as you assess your customers.
• Maintain financial records and don’t overextend yourself. Be aware of how much credit you have — especially if you have multiple floorplan lenders — and stay away from hard money lenders who drain a dealer’s cash flow daily. Also, ensure you understand where adjustments need to be made to offset rising costs. 
• Use the Lienholder Loan Payoff program. NextGear Capital can help you close more deals and accept more trades while maintaining your cash reserves and keeping your focus on selling cars.
• Put urgency into selling. Time is money, so treat your first renewal as a “payoff due” to keep from getting stuck holding units that aren’t a good fit. Price vehicles based on market value and not how much you have in the unit. All deals may not be winners — if you don’t move metal quickly you can’t win at all.
• Stay informed about software options for managing your floorplan. These tools are constantly evolving. Look for solutions like the NextGear Capital mobile app that help you be efficient and enable you to easily stay on top of your commitments. Features that give you a clear view of due dates or that can help with audits and reconciliation save you time and money.
• Word of mouth is a gold mine. Invest in a strong CRM to stay connected and drive sales. At the sale, be transparent and create a great customer experience that will help drive repeat business. Remember, this is likely the second largest purchase of their life.
• Build a strong team culture and invest in your employees. The team is the backbone of the dealership; you can’t grow without the right staff. Find ways to invest in your team – new benefits don’t always have to have huge costs. 
• Stay on top of industry insights. Keep your finger on the pulse of the automotive world, using the myriad of resources available online, including dealer groups you can join.