COMMENTARY: Accelerating used-vehicle sales in 2020

The adoption of innovative technologies is helping to propel dealerships through turbulent times and is fast becoming the new way to do business. From inventory management to virtual-based retailing, dealerships are now effectively tapping into markets that were once untouchable and improving the customer experience like never before. 

 

How does the wholesale vehicle sector pivot to transformative digital solutions? 

 

Before adopting new digital solutions, used-vehicle managers must address a few key areas to reduce the friction in the wholesaling process: having access to inventory on and off the dealership lot; shipping vehicles efficiently; and minimizing arbitration rates and potential adjustment situations. 

 

With the advent of online auction marketplaces, dealers have been able to streamline this wholesale process by showcasing vehicles to potential buyers while decreasing the time and costs it takes to sell their vehicles. 

 

To most effectively utilize online auction marketplaces, a seller must focus on transparency. In doing this, they establish a trustworthy bridge for buyers. 

 

Wholesalers who provide a complete and consistent description of the vehicle on a condition report are ahead of the game. These condition reports, when conducted by trained technicians, help facilitate successful vehicle transactions during the wholesale process while smoothing out the process with fewer arbitrations and potential adjustment situations. 

 

Convenience and confidence in inspection services is worth every penny when buying and selling used vehicles. Inspections, specifically those from a third-party, are critical in the process because they credibly convey as much of a vehicle’s information as possible between the buyer and seller. 

 

In fact, vehicles that undergo third-party inspections are three times more likely to sell than a dealer disclosure or self-inspect, according to industry sales data.

 

Additionally, vehicles with a third-party inspection sell in less than one-half the time as vehicles without an inspection. After the inspections are complete, the dealer is tasked with accurately pricing the units for wholesale, and deciding where to post the units.  

 

Streamlining the wholesale process through online marketplaces is a worthwhile solution for used-car managers looking to increase sales and values while minimizing costs. An effortless and tactful way dealerships can manage their used car inventory is through a multi-platform selling tool. 

 

Multi-platform selling tools simplify the sales process by creating access to multiple wholesale marketplaces through a single platform. The benefits include:

 

• Improved sellers’ success rates;

• Significantly expanded potential buyer base for sellers;

• The option for third-party inspections boost buyers’ confidence in vehicle condition;

• Inefficiencies are removed from the wholesale automotive sales process;

• Lowered sales channel and logistics costs to buyers and sellers; and

• Reduced days to sell, thereby reducing depreciation costs.

 

Ultimately, multi-platform selling allows online wholesale marketplaces to collaborate indirectly, which is great for everyone.