Purchasing the Inventory

• 1). Whether you are purchasing from auction, wholesalers or appraising trade-ins, research all retail values to make sure you can sell the vehicle at a price that will make a profit. Sign-up with major auctions in your area and obtain the list for the vehicles running in the auction lanes prior to auction day. Run all vehicle history reports, review pictures if provided and check all used car wholesale and retail values before purchasing a vehicle.
  
  
• 2). Employ someone extremely knowledgeable or experienced to appraise vehicles before purchase. Auctions offer limited time to review a vehicle, so make sure your buyer knows how to check for accident damage and how to quickly determine mechanical problems. If your assessor is experienced, he can determine prices for repair to help you with proper buying costs. Based on your research before the auction, you should have already decided the maximum price you'd pay to own the vehicle.
  
  
• 3). Follow the same procedures when accepting trade-ins or purchasing from a wholesaler or rental company. Follow your appraisal guides, run a vehicle history report (a bad history report can reduce selling price) and include necessary repair costs to determine proper retail values and profit. Know the market. Obviously, large sport utility vehicles (SUVs) will not sell well during a rise in gas prices.
  
  

Selling

• 1). Advertise your vehicles as much as possible or affordable. Use Craigslist for free advertising that reaches thousands in your area and always include pictures. Sign up with major dealer advertisers, such as AutoTrader or Cars.com. Purchase advertising spots in your local newspaper and always advertise your inventory in local print publications, such as a free auto guide.
  
  
• 2). Provide a link to your inventory website in all advertisements. Price your vehicles aggressively to create interest or do not put a price on them at all to create an opportunity to talk to people looking at your vehicles. Get traffic into your store.
  
  
• 3). Ensure that all of your vehicles are clean and in good running condition. Vehicles should have already been repaired before a customer drives it. Keep your lot and showroom looking professional to make a good first impression. Keep an effective key-organizing method in place to cut down on lost keys and customer waiting time.
  
  
• 4). Mark-up the pricing on vehicle inventory. Leave some prices off of the windshield or do not price the vehicles at all. Unfortunately, many people do not care if you offer the lowest price imaginable for your vehicle. Many want to feel that they are receiving a discount. Explain to customers that complain about pricing that window stickers are only starting prices.
  
  
• 5). Know your inventory inside and out. If you do not put prices on the window, tell the interested customer who wants a price that it is thousands above what you would normally ask, within market reason. Tell the customer you can make the price worthwhile if she likes the vehicle. If you properly marked the price, you should have no problem taking thousands off to satisfy your customer while retaining a decent profit.