Reasons to pursue the preowned market – December 4, 2006
December 4, 2006
Filed under Features
Higher gross profit potential than new motorcycles
Gross profit margins of 25 percent or more are attainable.
Establishing pre-determined margins on your used motorcycles allows you to have control over the gross profit margins.
Since every used motorcycle is unique in some way, pricing is seldom influenced by competition from other dealers.
Increased volume in new motorcycle sales
Taking trade-ins increases sales of new motorcycles.
Used motorcycle inventory attracts additional customers. Some of these will convert into new motorcycle purchasers.
Used motorcycle purchasers often trade up to new motorcycles.
Increased floor traffic
Used inventory creates additional price points that attract new customers.
Used inventory provides an expanded model selection that opens new markets to your business.
Increased sales of F&I products
Used customers buy F&I products just like new buyers.
Used buyers are more likely to purchase extended protection than new buyers.