Comments on: How Car Dealers Help CarMax Buy Cars http://www.dalepollak.com/2009/07/02/how-car-dealers-help-car-max-buy-cars/ Used Car Market - A Guide for Success Tue, 07 Feb 2012 23:17:00 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: mstiger http://www.dalepollak.com/2009/07/02/how-car-dealers-help-car-max-buy-cars/comment-page-1/#comment-10186 mstiger Mon, 10 Aug 2009 17:05:53 +0000 http://www.dalepollak.com/?p=367#comment-10186 $1,200 - $1,500 per vehicle?? Well, if that's true, that blows the "CARMAX spends much less than dealers do on recon." argument. That is by far the highest recon.-per-unit figure I have ever heard of..We spend about $300 avg. per vehicle and charge a retail labor rate. $1,200 – $1,500 per vehicle?? Well, if that’s true, that blows the “CARMAX spends much less than dealers do on recon.” argument. That is by far the highest recon.-per-unit figure I have ever heard of..We spend about $300 avg. per vehicle and charge a retail labor rate.

]]> By: mstiger http://www.dalepollak.com/2009/07/02/how-car-dealers-help-car-max-buy-cars/comment-page-1/#comment-19217 mstiger Mon, 10 Aug 2009 17:05:00 +0000 http://www.dalepollak.com/?p=367#comment-19217 $1,200 - $1,500 per vehicle?? Well, if that's true, that blows the "CARMAX spends much less than dealers do on recon." argument. That is by far the highest recon.-per-unit figure I have ever heard of..We spend about $300 avg. per vehicle and charge a retail labor rate. $1,200 – $1,500 per vehicle?? Well, if that’s true, that blows the “CARMAX spends much less than dealers do on recon.” argument. That is by far the highest recon.-per-unit figure I have ever heard of..We spend about $300 avg. per vehicle and charge a retail labor rate.

]]> By: JCreran http://www.dalepollak.com/2009/07/02/how-car-dealers-help-car-max-buy-cars/comment-page-1/#comment-9911 JCreran Thu, 23 Jul 2009 04:38:20 +0000 http://www.dalepollak.com/?p=367#comment-9911 Im sorry I got on this one a few days in. There are two ways to view the RECON thing and most dealers in my area do charge the Used Department full retail labor rate. The battle rages about front end gross and it should be better. It doesnt take much to run up a $1000.00+ recon ticket, trust me I know. If we look at the dealership as a whole, what owner in their right mind would take fixed op income and "move" it to sales? The last few months, I have been questioning my recon practices. I mentioned to a Dealer over a year ago paying the used car manager a portion of service and he looked at me like I had 2 heads. Hmmm... -John Creran Im sorry I got on this one a few days in. There are two ways to view the RECON thing and most dealers in my area do charge the Used Department full retail labor rate. The battle rages about front end gross and it should be better. It doesnt take much to run up a $1000.00+ recon ticket, trust me I know. If we look at the dealership as a whole, what owner in their right mind would take fixed op income and “move” it to sales? The last few months, I have been questioning my recon practices. I mentioned to a Dealer over a year ago paying the used car manager a portion of service and he looked at me like I had 2 heads. Hmmm…

-John Creran

]]> By: JCreran http://www.dalepollak.com/2009/07/02/how-car-dealers-help-car-max-buy-cars/comment-page-1/#comment-19216 JCreran Thu, 23 Jul 2009 04:38:00 +0000 http://www.dalepollak.com/?p=367#comment-19216 Im sorry I got on this one a few days in. There are two ways to view the RECON thing and most dealers in my area do charge the Used Department full retail labor rate. The battle rages about front end gross and it should be better. It doesnt take much to run up a $1000.00+ recon ticket, trust me I know. If we look at the dealership as a whole, what owner in their right mind would take fixed op income and "move" it to sales? The last few months, I have been questioning my recon practices. I mentioned to a Dealer over a year ago paying the used car manager a portion of service and he looked at me like I had 2 heads. Hmmm... -John Creran Im sorry I got on this one a few days in. There are two ways to view the RECON thing and most dealers in my area do charge the Used Department full retail labor rate. The battle rages about front end gross and it should be better. It doesnt take much to run up a $1000.00+ recon ticket, trust me I know. If we look at the dealership as a whole, what owner in their right mind would take fixed op income and “move” it to sales? The last few months, I have been questioning my recon practices. I mentioned to a Dealer over a year ago paying the used car manager a portion of service and he looked at me like I had 2 heads. Hmmm…

-John Creran

]]> By: dpollak http://www.dalepollak.com/2009/07/02/how-car-dealers-help-car-max-buy-cars/comment-page-1/#comment-9708 dpollak Tue, 14 Jul 2009 22:41:38 +0000 http://www.dalepollak.com/?p=367#comment-9708 Amen brother! Dale Amen brother!

Dale

]]> By: dpollak http://www.dalepollak.com/2009/07/02/how-car-dealers-help-car-max-buy-cars/comment-page-1/#comment-19215 dpollak Tue, 14 Jul 2009 22:41:00 +0000 http://www.dalepollak.com/?p=367#comment-19215 Amen brother! Dale Amen brother!

Dale

]]> By: carbuyer http://www.dalepollak.com/2009/07/02/how-car-dealers-help-car-max-buy-cars/comment-page-1/#comment-9704 carbuyer Tue, 14 Jul 2009 21:07:57 +0000 http://www.dalepollak.com/?p=367#comment-9704 Brandon- That is a common misconception about Carmax and their buyers. They absolutely are held accountable for their purchases. Their purchases are closely monitored by a very experienced management team. It may seem like they just have a blank checkbook and will ring the bell on all purchases but that is not true. Their whole business model is based on turning their inventory. Frankly if you don't have turn in your vocabulary you are dead in the water in the retail market today. Brandon- That is a common misconception about Carmax and their buyers. They absolutely are held accountable for their purchases. Their purchases are closely monitored by a very experienced management team. It may seem like they just have a blank checkbook and will ring the bell on all purchases but that is not true. Their whole business model is based on turning their inventory. Frankly if you don’t have turn in your vocabulary you are dead in the water in the retail market today.

]]> By: carbuyer http://www.dalepollak.com/2009/07/02/how-car-dealers-help-car-max-buy-cars/comment-page-1/#comment-19214 carbuyer Tue, 14 Jul 2009 21:07:00 +0000 http://www.dalepollak.com/?p=367#comment-19214 Brandon- That is a common misconception about Carmax and their buyers. They absolutely are held accountable for their purchases. Their purchases are closely monitored by a very experienced management team. It may seem like they just have a blank checkbook and will ring the bell on all purchases but that is not true. Their whole business model is based on turning their inventory. Frankly if you don't have turn in your vocabulary you are dead in the water in the retail market today. Brandon- That is a common misconception about Carmax and their buyers. They absolutely are held accountable for their purchases. Their purchases are closely monitored by a very experienced management team. It may seem like they just have a blank checkbook and will ring the bell on all purchases but that is not true. Their whole business model is based on turning their inventory. Frankly if you don’t have turn in your vocabulary you are dead in the water in the retail market today.

]]> By: Craig Belowski http://www.dalepollak.com/2009/07/02/how-car-dealers-help-car-max-buy-cars/comment-page-1/#comment-9561 Craig Belowski Fri, 10 Jul 2009 14:43:23 +0000 http://www.dalepollak.com/?p=367#comment-9561 Very well said. When looking at a vehicle based on a "can we sell it and make a profit in 30 days or less" basis it changes the game. There are 2 different markets to pay attention to. The wholesale market was traditionally where the most educated consumers operate…..in today’s efficient marketplace the retail consumer tends to be the most educated at least when it comes to what is available and what is a “fair” price. The used car market of today is trending more towards a true efficient market, however there are still lots of wholesale buyers making decisions on “herd” mentality and hunches and I’m sure if we look at their inventories they are riddled with retail problems. Very well said. When looking at a vehicle based on a “can we sell it and make a profit in 30 days or less” basis it changes the game.

There are 2 different markets to pay attention to. The wholesale market was traditionally where the most educated consumers operate…..in today’s efficient marketplace the retail consumer tends to be the most educated at least when it comes to what is available and what is a “fair” price. The used car market of today is trending more towards a true efficient market, however there are still lots of wholesale buyers making decisions on “herd” mentality and hunches and I’m sure if we look at their inventories they are riddled with retail problems.

]]> By: Craig Belowski http://www.dalepollak.com/2009/07/02/how-car-dealers-help-car-max-buy-cars/comment-page-1/#comment-19213 Craig Belowski Fri, 10 Jul 2009 14:43:00 +0000 http://www.dalepollak.com/?p=367#comment-19213 Very well said. When looking at a vehicle based on a "can we sell it and make a profit in 30 days or less" basis it changes the game. There are 2 different markets to pay attention to. The wholesale market was traditionally where the most educated consumers operate…..in today’s efficient marketplace the retail consumer tends to be the most educated at least when it comes to what is available and what is a “fair” price. The used car market of today is trending more towards a true efficient market, however there are still lots of wholesale buyers making decisions on “herd” mentality and hunches and I’m sure if we look at their inventories they are riddled with retail problems. Very well said. When looking at a vehicle based on a “can we sell it and make a profit in 30 days or less” basis it changes the game.

There are 2 different markets to pay attention to. The wholesale market was traditionally where the most educated consumers operate…..in today’s efficient marketplace the retail consumer tends to be the most educated at least when it comes to what is available and what is a “fair” price. The used car market of today is trending more towards a true efficient market, however there are still lots of wholesale buyers making decisions on “herd” mentality and hunches and I’m sure if we look at their inventories they are riddled with retail problems.

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