Profit margins are tighter than ever in today’s car market. The days of easy $3,000+ profits on every used car are mostly gone. But the core principles of “buy low, sell high, and turn fast” are still key. To succeed, you need smart merchandising.
What is Vehicle Merchandising?
“Vehicle merchandising”—we hear it all the time, but what does it actually mean? Simply put, it’s everything you do to make your cars more attractive to buyers. It’s about showing off your inventory in a way that grabs attention and sparks interest, both online and on your lot.
It is the art of presenting your vehicles in the best possible light. Beyond just listing a car, you show its unique selling points and create a connection with potential buyers.
There’s a lot of confusion around this term. Many “solutions” claim to be merchandising tools, but they’re really more about other aspects of the business. Things like appraisal tools, CRM systems, and even sending your inventory feeds to different websites are important, no doubt. But they’re not merchandising itself. They’re support functions.
True vehicle merchandising is about the vehicle itself. It’s about the quality of your photos, the descriptions that bring the car to life, and the videos that give shoppers a virtual tour. That’s what makes a car stand out. And that’s what we’re focusing on in this article: the strategies that directly impact how appealing your vehicles are to the people who are ready to buy.
Here are seven vehicle merchandising strategies to boost your profitability:
1. Think Local, Act Global (But Mostly Local)
Sure, some dealers are going national, but most sales still happen locally. So, nail your local market first. Analyze your leads and deliveries to find the sweet spot between local and broader demand. Focus on acquiring vehicles that are hot sellers in your area.
This is where an AI-powered inventory management system like Lotlinx VIN Manager can be a game-changer. It analyzes massive datasets to pinpoint local demand and suggest the right vehicles to acquire. Then, expand your reach by listing your inventory on online shopping sites. This way, you’re meeting local needs and tapping into a wider audience.
2. Price Smart, Not Just Cheap
Pricing is everything. Ditch the gut feeling and use data to drive your pricing strategy. It needs to be scalable, so you’re not relying on a few “pricing gurus.”
Think about dynamic pricing, like gas stations or airlines—adjusting prices based on demand and other factors. AI vehicle inventory management software can analyze market trends and competitor pricing in real-time to optimize your pricing and limit markdowns. A smart pricing strategy maximizes revenue and keeps things consistent, no matter who’s setting the prices.
3. Price for the Customer, Not Just Yourself
Shoppers look at price tags first. So, give them what they want! Show multiple price options: the sticker price, and estimated monthly payments. Even better, automate the display of cash, loan, and lease prices where you can. Lotlinx can even personalize these offers based on individual customer profiles and preferences. This makes your listings more appealing and grabs those shoppers who are ready to buy now.
4. Turn Trade-Ins into Treasure
One person’s trade-in is another person’s dream car. Don’t just wholesale those trade-ins! Advertise them on online auction sites, buy-here-pay-here sites, even Craigslist. You’ll often get better prices than wholesale and keep your advertising costs down. Just remember to use VIN-specific vehicle history reports and market analysis to figure out which trade-ins to prep for retail and which ones to liquidate.
5. Automate Your Ads
Stop wasting time manually posting ads. Automate the whole process for every car in your inventory. Segment your inventory by type, model, trim, mileage, price, age—so you can target the right buyers on the right platforms. Lotlinx automates this, going beyond simple traffic generation to deliver shoppers who are in-market and highly engaged.
Dealers using Lotlinx have seen significant improvements, including a dramatic reduction in cost-per-shopper and cost-per-VDP view compared to traditional methods. Lotlinx drives low-funnel shoppers directly to your VDPs on your website—not leads on third-party sites—resulting in increased time on site and a surge in new visitors. Lotlinx syndicates your inventory across Google, Facebook, Instagram, and over 130 other sites, but always brings those valuable VDP views back to your domain, giving you full control and transparency.
Click here to watch our video on how to maximize your dealership’s ad spend.
6. Make Your Listings Pop
In a crowded online marketplace, you’ve got to stand out. Your listings need to be more than just a list of features. They need to be engaging, unique, and compelling. Work with your website provider to come up with fresh ideas for showcasing your inventory. If they’re not bringing new ideas to the table, maybe it’s time to find a new partner.
7. Videos: The Secret Weapon
Photos are good, but videos are gold. Walk-around videos give shoppers a much better experience, making your listings more engaging and helping you close more deals. Plus, videos give your SEO a boost—search engines love them.
Lotlinx VINtv is the first end-to-end video inventory solution designed to help dealers increase sales, lower operational costs, and improve customer experience. It uses AI to automatically generate short, engaging video ads for every vehicle in your inventory, pulling details directly from your listings and distributing them across major platforms like Google, Facebook, YouTube, and OTT streaming services.
VINtv’s hyper-targeting delivers ads to shoppers 20x more precisely than traditional marketing tech, maximizing your reach and ROI. Investing in a good video solution—especially one powered by AI like VINtv—is a no-brainer these days.Volume is vanity, but profit is the fact. Visit Lotlinx to see our packages, and sell more cars faster.