Dealers’ toolkits used to be a lot simpler. Salespeople relied on a couple of major pricing books, industry experience, and maybe a few common sales strategies.
How times have changed.
Modern technology has turned dealerships of every size into complex operations. On top of that, online competition is forcing dealers to use new digital tools just to keep up.
Fortunately, these tools can help dealers do more than just stay afloat. The right platform can actually help dealers accelerate their turn while increasing profits.
But with so many options on the market, it can be tough to know which ones are right for your operation. Below, we’ve outlined 6 essential software tools modern dealers need in their toolkit.
#1: Accurate Pricing & Appraisal Tool
When your competitors are competing in a race-to-the-bottom on price, it might seem like your only option is to do the same. But sacrificing your gross margin just to stay competitive isn’t a recipe for success.
That’s why an accurate vehicle appraisal and pricing tool is so important. These tools help you price new inventory effectively for your local market. That way, you hold onto your front-end gross while still bringing in buyers.
Benefits:
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- Helps you earn more profit on each vehicle
- Increases value of trade-ins with accurate appraisals
- Boosts turn by letting you price effectively for your market
What to Look For:
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- Real-time market data (not just information from pricing books)
- Price calculator that factors in multiple pricing variables
- Mobile VIN scanner
Popular Tools:
#2: Inventory Optimization System
Boosting inventory turn and front-end profits requires more than just pricing inventory effectively. You’ll need to stock the right vehicles for your market as well.
That’s the difference between inventory management and optimization. The best tools track sales, turn rates, and pricing age for your entire inventory. This data can then be used to stock more of your dealership’s best-selling products.
Benefits:
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- Boosts turn & profit through better stocking decisions
- Lets you earn more on each vehicle through better syndication
- Helps you identify and take advantage of profitable niches in your local market
What to Look For:
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- Sales and inventory performance reports
- Local market insights
- Automated syndication
Popular Tools:
#3: Online Auction Bidding Tool
Once dealers find the right cars, they need to buy them at the right price. Inventory shortages are making that more difficult than ever.
Dealers can expand their search for profitable inventory with an online auction bidding tool. These tools provide access to auctions nationwide and allow dealers to place bids directly through the platform.
Benefits:
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- Lets you find the best deals & prices nationwide
- Uses your inventory data to identify profitable cars
- Helps you avoid extra costs such as transportation costs, auction fees, etc.
What to Look For:
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- Access to local and national auctions
- Built-in bidding functionality
- Price lists based on real-time market data
Popular Tools:
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- VINCUE
- vAuto Stockwave
- Adesa DealerBlock
#4: Digital Marketing Platform
Effective ad placement is what brings new buyers to the lot. But vehicle marketing isn’t as simple as it used to be.
Traditional marketing channels are getting more expensive and less effective each year.
Dealers can maximize their ad spend and reach by using a digital marketing platform to run their own online advertising instead.
Benefits:
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- Cheaper than traditional marketing channels
- Uses targeting to bring in customers actively looking to buy
- Boosts customer loyalty by sending buyers directly to your VDPs instead of third-party sites
What to Look For:
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- Automated ad creation
- Website building & optimization tools
- Detailed metrics and reports to help you track ROI
Popular Tools:
#5: Sales-Ready Automotive CRM
Today’s buyers are gravitating towards online marketplaces and away from dealerships. Delivering a superior customer experience is the best way for dealers to appeal to this new breed of car buyers.
That’s where a Customer Relationship Management (CRM) tool comes in. These platforms help your team stay on top of communication with new leads. This lets your sales staff provide the level of attention modern customers have come to expect.
Benefits:
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- Boost sales by quickly following up with leads
- Streamline communication between your staff
- Easily manage appointments and tasks
What to Look For:
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- DMS integration
- Automated email and text replies
- Mobile-friendly application
Popular Tools:
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- DealerCenter
- Salesforce
- VinSolutions
#6: A Comprehensive DMS
Increased turn and profits come from optimizing your dealership’s front-end. But managing your back-end is just as important to achieving sales success.
Most dealer management systems (DMS) can handle certain front-end tasks. However, they’re most critical in ensuring that your service and F&I departments continue to run smoothly.
Benefits:
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- Manages most F&I operations (warranty information, credit checks, etc.)
- Helps you track service requests & status
- Keeps you compliant with industry regulations
What to Look For:
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- Cloud-based functionality
- Vendor integration
- Easy-to-use interface
Popular Tools:
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- DealerSocket
- Perq
- DealerTrack
Simplify your toolkit with an all-in-one digital dealership platform
Any one of these tools can help improve your dealership’s sales performance. However, utilizing all 6 is the only way to achieve higher gross and turn for your operation.
But 6 tools also means 6 separate logins. Having to switch between multiple tools during a sale can actually end up hurting your team instead of helping them.
The solution: an all-in-one digital dealership platform.
VINCUE offers dealers powerful pricing, appraisal, inventory, and precision advertising tools within a single platform. When used together with a DMS and CRM, VINCUE helps dealers sell faster without sacrificing profits.
Ready to revolutionize your dealership’s toolkit? Request a demo today.
