Comments on: Welcome To Velocity… http://www.dalepollak.com/2008/04/06/welcome-to-velocity/ Fri, 21 Nov 2008 17:54:24 +0000 http://wordpress.org/?v=2.5 By: ruggles http://www.dalepollak.com/2008/04/06/welcome-to-velocity/#comment-21 ruggles Fri, 02 May 2008 01:42:06 +0000 http://dalepollak.octadyne.net/?p=19#comment-21 I have a question for Dale and any other contributors to this blog regarding the fact that the Internet has changed what we can charge for used cars. There is NO DOUBT that it was common policy to take a new trade or purchased vehicle and mark it up an amount, say $3000. to $4000. or higher in a hi line store. This practice was used as justification to charge full boat retail for internal reconditioning because, after all, all you do is mark up the inventory figure and the buyer pays it. As a side note, CarMax does not mark up recon and internal work. Is this practice going to have to be re-examined? Should the service department's best customer not get a discount? Or is the priority to bush the sales department and put them at a disadvantage versus the volatility of the market. Its enough of a challenge to keep water out of the used car inventory as it is. Having to wholesale cars because one can't afford to recon them is costly. I've heard it said that retailable $8,000. to $12000. dollar units can't be bought or traded for, they must be made through recon. What do others think about this? I have a question for Dale and any other contributors to this blog regarding the fact that the Internet has changed what we can charge for used cars. There is NO DOUBT that it was common policy to take a new trade or purchased vehicle and mark it up an amount, say $3000. to $4000. or higher in a hi line store.

This practice was used as justification to charge full boat retail for internal reconditioning because, after all, all you do is mark up the inventory figure and the buyer pays it.

As a side note, CarMax does not mark up recon and internal work.

Is this practice going to have to be re-examined?
Should the service department’s best customer not get a discount? Or is the priority to bush the sales department and put them at a disadvantage versus the volatility of the market. Its enough of a challenge to keep water out of the used car inventory as it is. Having to wholesale cars because one can’t afford to recon them is costly. I’ve heard it said that retailable $8,000. to $12000. dollar units can’t be bought or traded for, they must be made through recon.

What do others think about this?

]]> By: tbarg http://www.dalepollak.com/2008/04/06/welcome-to-velocity/#comment-2 tbarg Wed, 09 Apr 2008 13:53:34 +0000 http://dalepollak.octadyne.net/?p=19#comment-2 Saw Dale's keynote speech at CPO. It was awesome. Saw Dale’s keynote speech at CPO. It was awesome.

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