CARY, N.C. -

As we continue our series of features from the Power 300 issue of Auto Remarketing, we turn to a Q&A with Avi Steinlauf, chief executive officer at Edmunds.com.

In this story, Steinlauf discusses the grassroots technological ventures at Edmunds, the off-lease environment, the growing online retail space, the certified pre-owned market and more.

Auto Remarketing: One of the things that sticks out to us about Edmunds.com is the grassroots work you have done in the technological space with events like Hackomotive, Fastlane accelerator and sponsoring the DataFest programs on college campuses this year. What are some of the top benefits for Edmunds.com from these efforts, and how do you see some of these technological advancements impacting dealers?

Avi Steinlauf: These types of programs demonstrate our unrelenting commitment to innovating to build a better car-shopping experience for both buyers and sellers. We have an exceptionally talented staff here at Edmunds that works toward this goal every day, and we also recognize that there are many start-ups and other young innovators who have great ideas that deserve exposure, too.

By giving them access to our resources, we hope that they can better test their products and ideas to see how they stand up to a larger marketplace. The way we see it, if these ideas and innovations can prove themselves out, then the entire industry stands to benefit. These emerging technologies are playing an important part toward helping dealerships keep up with — and perhaps even shape — America’s evolving car shopping behaviors. It’s truly one of those “rising tide lifts all boats” scenarios.

AR: A key point that has been brought up a few times in used-car analyses from Edmunds.com and others is the impact of increased off-lease volume, particularly on resale values. What are some ways you have seen the industry (be it dealers, lenders, OEMs) manage this risk?

AS: Lenders can move used vehicles around to different auctions houses where they may fetch a higher price. For instance, full-size pickup trucks might be sold for more in Texas than in San Francisco, due to those markets’ differences in demand.

Lenders will also want to keep auction prices high so they will ensure vehicles going through auction house are in top condition. They will also have them lined up properly as to not miss an opportunity for a sale.

Automakers, meanwhile, will try to optimize the schedule of lease returns to ensure they aren’t flooding the market at one particular time. They could also move up the lease returns to be earlier in the year so the newer vehicle can sell for more money. Wholesale values tend to be the highest in the spring, so selling vehicles in the right time of year could also be beneficial.

AR: How much of the dealer-consumer relationship and car-buying process do you see moving online, and what role does Edmunds.com play in that process?

AS: It’s clear that we see more and more shoppers moving to mobile devices to perform many of their shopping activities. The share of mobile traffic to Edmunds, for instance, has doubled in the last two years.

Our job is to provide important tools for dealers to better meet the needs of these mobile shoppers. We recently made our CarCode SMS texting technology freely available to all dealers to make it easier for them to receive, manage and respond to incoming text messages, which is increasingly becoming a critical mode of communication for many shoppers, especially millennials.

We also make our wealth of data available through our API so that dealers can more easily leverage it on their own sites to better inform and connect with their shoppers.

One important point I want to make, though, is that the in-dealership experience still plays a very important role in the car buying process, even with younger tech-savvy shoppers. A recent Edmunds study found that 64 percent of millennials said that they prefer face-to-face interaction with dealers as opposed to remote communications, and 96 percent said that it is important to test drive the car before they buy it.

AR: Lastly, we talked recently to Jessica Caldwell of Edmunds.com about how consumer awareness should help drive continued growth in certified pre-owned. Through the interactions that Edmunds has with both dealers and consumers alike, what are some opportunities dealers might have to further educate consumers about CPO?

AS: Not all customers may be aware of CPO and its benefits, so something as simple as signage at a dealership or clear designation on inventory listings can get more shoppers to ask about the program. A strong CPO brand helps (e.g. L/Certified from Lexus), so consumers know there is something tangibly different about these vehicles.

Dealers also have an opportunity to preach the benefits of CPO when they connect with incentive-driven shoppers, such as those who come to them through our Used+ product. A shopper who is enticed by exclusive pricing, a $200 gas card, a 30-day warranty and free roadside assistance will almost certainly be intrigued by the extended benefits that CPO programs can offer.

Other features in this special section include:
4 questions with NextGear’s Brian Geitner
4 questions with NADA Used Car Guide's Larry Dixon
4 questions with Infiniti CPO manager Sam Liang
4 questions with Black Book’s Anil Goyal
4 questions with Autotrader president Jared Rowe
4 questions with Geoff Parker of ADESA Cincinnati-Dayton 
4 questions with Hudson Cook chairman Tom Hudson