A dealer that has taken 100% control of his own destiny
Keith, congratulations on your success.
Last Month our stores finished with 3.3% net of sales at the Chevrolet store, 4.3% at Ford, 1.7% at Imports and 5.7%at Hyundai/Kia. Our volume is lower than last year. However, the decrease in flooring expense and much lower inventory levels because the cars are turning faster are benefits we have not yet talked about. We now have $2,000,000 in used car inventory turning 16.8 times per year and the average days in inventory is 22 days. Our investment per car is decreasing rapidly so we are able to stock more cars with the same amount of cash. We just paid off our last car at our floorplan source, we now own all of our used inventory free and clear. In my ten years as a dealer and all my years as a GM I have never been able to do that. Fast payment makes fast friends.
We bought our first proxy bid cars this week and are building our inventory to increase sales. We are working with Auto-Trader, Cars.com and TK websites to increase our online exposure. We are decreasing our traditional advertising. Our service process is being polished to meet the steady increse in volume we hope to see in the near future. We are ready. Any increase in volume will have a huge increase in our net profit because of the high gross percentage in the used car and service departments.
As soon as the smoke clears from the GM and Chrysler mess, I truly beleive dealers that are well capitalized and ready for the market will have explosive growth and profit potential. The question is who will be ready?
Thanks for all your help over the last few months.