At AutoSavvy we are constantly working with our retail team to determine the vehicle that we want to buy, and more importantly the cars we don’t want to buy. If you’re not familiar with AutoSavvy, let me quickly introduce us. AutoSavvy is the largest retailer of branded title vehicles in the United States. We have retail locations from coast to coast and have sold more than 70,000 branded title vehicles. We have more than a decade’s worth of data to pinpoint exactly the type of vehicles we need to purchase and stock to optimize our operation. We’re constantly evaluating what to buy, which helps us understand which cars you should build.
So, how do you pick the right car to build?
It’s probably the most important question any successful rebuilder can ask. We’re sure that you’ve spent time considering this question. We’ll share some of the answers that we’ve come up with.
First, why does purchasing the right car to rebuild matter?
Well, it’s the very first step in making sure your build is set up for success. Our team was visiting a builder in Phoenix, Arizona last week. He had about 15 units on his lot. Of those 15 units, 10 had been sitting for more than 6 months. Our team reviewed each vehicle’s Make, Model, and Trim, and realized the desirability of these units was not the motivation to buy at the auction. This builder was buying solely off of the auction price of the vehicle, trying to spend the least amount of money possible. Whatever profit he thought he was going to gain by buying the ‘cheap one’, he lost as the unit aged due to a lack of desirability.
Builders will generally buy what they like.
For example, you might buy the car you like to drive. That’s not always what’s most desirable in the market. The driving force in your purchasing decision should be market research. Consider everything about the vehicle. Trim, interior material, drivetrain, seasonality, demand, supply, damage, and price point. Leave emotion and attachment out of the decision. You may love a certain make and model, but if consumers don’t want it, then it’s probably best to leave it at the auction and turn a profit on another.
Most states will publish a registration list from which you can see what cars are selling, and which cars are the most popular. Looking at competitors can be helpful too – What are they buying and turning? You can also reach out to us. We’re always willing to connect and share some additional data and information. Using these resources is the best way to buy highly desired vehicles which result in higher profits for you.
Good luck with your current and future builds. Please comment here if you’d like to connect and discuss what you’re working on, and how to improve. We’d love to know how you decide which cars you should build.