Traditional car buying process gets a modern makeover, with dealers accelerating their approach to a speedier transaction process.

In the ever-evolving automotive landscape, the used car market has seen a notable shift in recent times. According to iSeeCars, prices have stabilized after a fall of up to 7.3% in June 2024.

The used-car department plays a significant role in the overall operations of franchised dealers. On average, franchised dealers sell 75 used vehicles for every 100 new cars they deliver. This sector is becoming increasingly important, particularly as the average 1- to 5-year-old used car now costs $31,624, a 1% increase from a year ago.

In response to the challenges in acquiring used cars, particularly since the COVID-19 pandemic began in early 2020, dealers are adopting strategies from used-car giants like CarMax and Carvana. These strategies involve buying cars directly from consumers to help replenish used-car inventories.

John Luciano, dealer principal of Street Volkswagen, notes that cars with 90,000 miles are doing well in terms of book value. He also emphasizes the worth of a low-mileage pre-owned vehicle, stating that they are significant in the market.

Dealers are also willing to lower the price of a new car to facilitate getting a desirable quality trade-in that will do well on the used-car lot. Working the service lanes with an eye toward buying vehicles has become popular among dealerships. Service advisers ask customers if they want their vehicle appraised, opening the conversation about selling the car.

This approachable strategy, along with a trained personnel and a "light" word track, aims to approach customers about buying their cars without offending them. Dealerships are getting increasingly good at acquiring used cars, as stated by Tim Jackson, former president of the Colorado Automobile Dealers Assn.

As new car prices continue to rise, used cars have become a more viable option. Trade-ins and off-lease acquisitions continue to be the primary methods for replenishing pre-owned stock, but some people prefer to sell a vehicle rather than trade it in or sign up for a new lease.

According to Andrew DiFeo, dealer principal at Hyundai of St. Augustine, dealers who are good at acquiring used inventory will succeed in this market. The stability and potential growth in the used car market indicate a promising future for dealers who adapt to these changing strategies.

Traditional car buying process gets a modern makeover, with dealers accelerating their approach to a speedier transaction process.