It’s that time of year again, time to reflect on all that we should be thankful for.

First and foremost is our life and health. It’s much easier to focus on all that’s wrong in the world.

Now, down to business. You know that tension that always seems to be there between your sales and service departments?

If you are a franchise dealer, you likely understand and appreciate the distinct advantage even having both departments gives you over an independent dealer who doesn’t have that luxury.

If you sell new cars, you have the ability to take in trade some 2- to 6-year-old vehicles, with a high percentage coming from your own brand. This not only gives you higher quality vehicles, but you know that models that sold well new will sell well used. Having this built-in supply line also means that you can have a robust certified pre-owned program.

For dealers without the new-car business, your trade-ins are typically older, higher-mile models. This causes you to search in the open market and competitive auction space for less desirable inventory with the additional cost of shipping.

If you have a service department, you literally can create your own “used-car factory.” When you create service loyalty from your new-car customers, magic happens.

Not only are you able to drive service revenue but you are able to create your own supply line of the perfect inventory for your used car operations.

When a new-car customer becomes a regular service customer and gets their regular service and maintenance done at your location, they become 86% likely to return to buy their next new vehicle from you.

When they buy a new model, they’ll likely trade in the one they bought from you last time, only now it is “homegrown” inventory, which is the fastest-selling, most profitable inventory there is – but you already knew that part. By the way, those “homegrown” models also make the perfect CPO vehicles.

So in this time of giving thanks, let’s slow down …  and catch our breath … and realize just how much there is to be thankful for.

–Just The Fax

By Robert Grill, Carfax Senior Partner Development Manager

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