Reduce Standing Time
Y is amount saved based on the fact that a car costs a dealership 80 euros a day
X is number of days that a car gets online earlier / number of cars. Second bar is for four dealerships
Every day counts when it comes to reducing "standing time" for used cars at your dealership. The Rotoview app can help you cut these days significantly. How? First, it allows you to upload cars instantly—no more waiting for the camera expert. Anyone with a phone can do it right away. Users of our app typically get their cars online 4 to 10 days faster, leading to a direct reduction in standing time. Check out below to see how much this can save you as a dealer!
The 30/60/90
Rule in Used Car Management
Over the years, we've seen big improvements in used car management, particularly with standing time policies. What was once rare is now routine, but is it enough? I think it's time to rethink our approach. Simply reviewing a car's standing time after thirty days is no longer effective, and here’s why:
1. A More Dynamic Market
The used car market has become increasingly fast-paced, with more companies aggressively buying and selling. Large volumes of similar vehicles entering the market simultaneously can drive prices up or down, heavily influenced by local supply
2. Systems Lag Behind Market Prices
Many residual value systems fail to keep up with daily price changes, leading to misguided pricing strategies. Relying too heavily on automated discounts can erode profits across the board.
3. Volume Over Value
There’s a tendency to prioritize sales volume over profitability, particularly with the shortage of 3-5-year-old cars. This volume-first mindset can compromise your market position.
How to Adjust your car advertising Strategy?
In General:
Don’t react impulsively to every price shift from competitors. Instead, critically assess your inventory every twenty days to maintain healthy margins.
41–60 Days
Urgent Action Required: If leads are still scarce, it’s time for decisive action. Ensure the car is easy to find and well-presented online. If that’s not enough, significantly lower the price and ramp up promotions, like top ads or social media, to boost visibility and drive the sale.
0–20 Days
Optimal Presentation: In the first 20 days, focus on presenting the car online with strong visuals, an accurate description, and a competitive price. Highlight any unique features, especially for well-specified vehicles, and don't hesitate to price slightly above market average. This can significantly boost returns.
61–80 Days
Address the Issue: If a car hasn't sold in over 60 days, something is wrong. A truly attractive car at a good price shouldn’t sit that long. Consider selling it at cost (purchase price plus general costs)..
21–40 Days
Sell or Adjust: This is the critical period for selling. If leads are strong, aim to close the deal. If leads are lacking, analyze why—consider pricing, regional competition, and how your car compares. Decide whether to sell based on the car's features or adjust the price to be more competitive. If your price is above market average, it's time to lower it.
81+ Days
Final Alarm: If a well-presented, competitively priced car still isn’t selling after 80 days, it's time to refresh your stock. Consider selling at cost or even a small loss to free up capital for more attractive inventory.