Cash for Clunkers crush dirt lots

August 20, 2009

Dale – we talked last year after reading your book. I put a plan in action Jan. 1 this year. The first 5 months I increased sales by 7 units per month average. June increased 11 units and July increased 15 units. I have turned some units in 3 to 14 days. Recon time down from 10 to 5 days. This is the problem, my average retail price is $4,200. This month, it looks like sales are going to be really low. I have about 14 more units in stock than I need. I feel good about what I have, didn’t pay crazy money for the units, but if C4C doesn’t stop with 3 billion, where does this put my inventory? Out of the 28 units, I am only getting trade ins on 18% of them. Thanks for your time I know you’re very busy.   Karonel

Karonel, congratulations on your recent performance improvement. I’m not surprised that your sales in August have been down. The new car dealers, and particularly the low priced new car dealers are seeing all the action.

More importantly, however, I’m very concerned about the availability of future inventory for you. The types of cars that you need are being stacked up and destroyed like cord wood on new car dealer’s lots all over the country. I don’t have a suggestion, and I’d like to know if anyone else can advise my friend Karonel.

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