How to Build a Smarter Used Bike Operation (And Stop Losing Margin)
From sourcing to sales, here’s how to turn used inventory into your dealership’s biggest profit engine.
In this Motorcycle & Powersports News Power Player spotlight, I sat down with Brian Yankney to talk about one of the biggest missed opportunities in powersports: used inventory.
If you're running a dealership, you already know that floor planning new units is expensive, risky, and often dictated by the OEM. Used bikes? That’s your lane. And if you do it right, it’s also your highest-margin opportunity.
We talked about sourcing strategies, building systems, creating digital ads that actually work, and how to turn your trade-in process into a true buy center. Let’s break it down.
1. Used Bikes Are a Profit Center-If You Treat Them Like One
Used inventory isn’t a backup plan. It’s your opportunity to buy low, control pricing, and create margin. But only if you:
- Know where to source from
- Know how to price them
- Have a plan to sell them quickly
That’s why we created the MotoHunt Profit Accelerator. It outlines five key sourcing strategies:
- Wholesale (dealer-to-dealer)
- Auctions (NPA, regional)
- Service department buys
- Private party sellers
- Website trade leads
Every dealership should be tapping into all five. The best operators treat this like a department-not a side hustle.
2. Turn Your Service Department Into a Goldmine
Most dealers overlook service as a source of used inventory. But those RO write-ups? They’re full of opportunity.
You’ve got:
- Riders coming in for major services
- Customers with aging units that don’t want to invest in repairs
- Techs spotting bikes that should be traded or sold
If your sales manager isn’t connected to your service department, you’re leaving deals on the table.
3. The Buy Center Model: Sales in Reverse
Selling bikes is organized. Buying them should be too.
At MotoHunt, we built the Buy Center to help dealers manage all their acquisition efforts in one place:
- Track offers from Craigslist, Facebook Marketplace, and private parties
- Collect leads from website trade-in tools
- Organize inbound ROs that could be trade candidates
This isn’t a spreadsheet. It’s a system. And when dealers use it right, they save time, improve response rates, and close better deals.
4. You Don’t Make the Money When You Sell the Bike-You Make It When You Buy It Right
Pricing a used unit starts before it hits your floor.
You need to factor in:
- Market comps (local and national)
- Sales velocity (how fast do they turn?)
- Reconditioning costs
- Pack fees, doc fees, and margin targets
We created a pricing tool we call the “war chest.” It’s a one-pager that brings all those data points together so a sales manager can make a smart decision at the point of acquisition.
If you’re still guessing-or worse, just using gut feel-you’re putting your gross profit at risk.
5. Don’t Just Want More Leads. Work the Ones You Already Have
Dealers love to talk about getting more leads. But most aren’t even working the ones they have.
You’ve got website traffic. But how many leads are leaking through a generic trade form? How many units are sitting online with:
- Stock photos
- No price
- No description
- No urgency
The digital showroom matters. That’s why we built tools to help dealers:
- Auto-populate Google and Meta ads with real inventory
- Rotate in fresh trades the moment they go live
- Run low-cost, high-frequency campaigns that match buyer intent
Meta builds awareness. Google captures intent. Both work best when the inventory behind them is clean, live, and priced right.
6. Trade Leads Are Different-Treat Them That Way
A trade-in customer isn’t just a buyer. They’re also a seller.
If your sales team is calling those leads like any other “get quote” submission, you’re killing conversions. These leads need a different tone. A different follow-up. A different conversation.
We use a tool called TradeCycle to replace generic website forms with an interactive widget that:
- Collects VIN, mileage, and condition info
- Routes the lead directly into the Buy Center
- Helps dealers appraise and manage the conversation properly
Some dealers even route these leads to a separate buyer rep or inventory manager. Because that’s what it takes to handle them right.
Final Thought: 2025 Winners Will Be Organized, Data-Driven, and Customer-Focused
Used inventory isn’t getting easier. It’s getting more competitive. And with new unit margins thinning, this is where real profitability will come from.
If you want to win in 2025:
- Get your sourcing strategy organized
- Use systems that track and improve decision-making
- Merchandise your inventory like your paycheck depends on it (because it does)
- Run digital ads that are inventory-driven, not vanity-driven
The dealers who build these muscles now are the ones who will thrive when the market shifts again.
This post is based on Jacob Berry’s Power Player Spotlight interview with Motorcycle & Powersports News. Be sure to follow the Dealership fiXit Podcast for more strategies and insights from the front lines of the industry.