September 9, 2019
SQUEEZE EXTRA SALES WITH USED CHASSIS
As new chassis supply dwindles and lot inventory becomes squeezed, truck dealers are having to get creative in order to satisfy their commercial vehicle customers. In many instances, those that have the inventory will end up getting the sale. So as a commercial truck dealer that normally maintains a well rounded selection on your lot, where do you turn when new chassis are hard to come by? The answer may be already sitting on your lot.
Pre-owned (or in some cases “certified”) trucks are a viable solution to your inventory problem when chassis cabs and box-deletes are hard to come by from the factory. Repurposing pre-owned class 2 and class 3 trucks, especially those that have lower mileage, and investing in upfits for them provide a boost to your ready-to-work inventory. In fact, there are an increasing number of used vehicle dealers that focus solely on purchasing pre-owned trucks and utilize them for truck body upfits, only to sell them as fully contented work truck packages.
The challenge with this is finding the right pre-owned inventory. Not only will you be looking for specific models that are compatible with truck bodies from a technical standpoint (GVWR, bed length, etc), but also for the right price that will afford you the opportunity to make profit. Investing in new truck bodies for these trucks may seem like you are eliminating the chance to make money, however it is much the opposite. Upfitting with a new truck body provides you the ability to increase the price and pad your margin.
So, where do you find these low mileage, pre-owned trucks? There are several places you can start looking. The first place is at auctions, specifically ones that feature a large volume of vehicles from vehicle rental companies. Other options include engaging with other dealers for trades and getting active with obtaining high quality, local trade-ins.
Consider selecting your highest volume upfit choices for the pre-owned trucks such as service bodies, flatbeds, gooseneck bodies and box bodies among others. This will ensure you have the greatest chance of quickly moving your pre-owned upfit inventory and maximize your profit potential.