Used Cars: Where Do They Come From

When it comes to purchasing pre-owned vehicles for Luther Automotive, there are generally three preferred methods.

Trade-Ins  

Roughly half of our vehicle inventory comes from trade-ins. Why is this important? It creates a cycle. When a guest  trades their car in, it’s three transactions. The trade to your store, their new (or used) vehicle purchase, and the sale to the next guest.    

Auto Auctions  

There are 328 auto auctions in the United States alone. 311 physical locations, and 17 online versions that are 24/7 platforms for purchasing used vehicles. Auctions represent about 30% of our used vehicle inventory. 94% of these purchases are done online without having to be at a physical auction location. Once the purchase is complete, the vehicles are transported back to the dealership via truck and trailer.   

WeBuy  

Luther/Landers buys any car, regardless of condition, age, or what the guest owes. Some guests simply don’t need or want to purchase another vehicle. Any one of our locations, or our mobile We-Buy team can buy a vehicle from a guest. 15% of our pre-owned inventory is attributed to the WeBuy program.   

About another 5% of the remaining pre-owned inventory is sourced through the Dealer Trade process which occurs when other dealerships or wholesalers contact us looking to bid and/or purchase a vehicle in our inventory.

Got questions for the Used Car Guy? Submit them here.