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Editor's Note: This is story is part of our upcoming Leading Dealer Groups print edition of Auto Remarketing. This early look at that content is being offered to CMG Premium subscribers. The Leading Dealers Groups print edition of AR will be released in July. 

Like many dealers across the U.S., Dawn Walston and the team at Titus-Will Toyota in Tacoma, Wash. — which is part of the Titus-Will Automotive Group — has faced significant headwinds from the COVID-19 pandemic.

But as dealership operations began opening back up in Washington state in May, albeit with strict regulations, some bright spots emerged for the Titus-Will team, including its used-car operations.

Walston, who is the vice president and general manager of Titus-Will Toyota, joined the Auto Remarketing Podcast in early June to talk about how the dealership and dealer group has dealt with the challenges from the pandemic as well as how business is bouncing back.

As to how the used-car side has fared for the group as business improves, Walston said: “Actually, that’s been probably the most significant improvement … And I don’t know if it was the additional federal money that was coming or the stimulus checks, but customers were really on the hunt for that car that was under $15,000, $10,000 — the lower-priced units.

“We were actually selling out of those … we did just as much in all of our used-car locations as we did last May without the COVID-19,” Walston said. “So, it was constantly keeping inventory fresh.”

One of the concerns in March and April was used-vehicle inventory sitting stagnant on lots. Titus-Will was not purchasing any vehicles and they also were not getting any trade-ins, Walston said.

“We kind of went into March with a volume of inventory. So, when the dam opened a little bit, then all of a sudden, customers are online, at home, doing their research, and then buying,” Walston said. “So, May turned out to be much better than anybody anticipated, not only in the new-car arena, but used, especially. Helped clear a lot of aging inventory.”

Of course, finding used inventory can be a challenge these days, with the lack of trade-ins and scaled-back conditions at auctions, particularly in Washington state. In addition to tapping into sources like rental-car companies and leased vehicles, Titus-Will turned to buying vehicles directly from consumers and through its peer dealer network.

“We developed a buying center on our websites, letting customers know if they needed to sell their vehicle, that we were available,” Walston said, also noting that they were buying cars from other dealers through various networks. 

Though they were not buying as many cars in general, Walston said that, “we find that a lot of times … the best sources to buy inventory is from your local community and the dealers that you do business with.”

While those in the auto industry are well-aware that consumers can sell their cars to dealerships without making another transaction, the general public might not be as aware. Educating consumers about that has been a focal point.

Walston said that, “we have taken great strides this last year to really educate customers that we are a great buying center for them … even my family and friends who have known me in this business forever still say, ‘So, you don’t have to trade it in? You just buy it directly from me?’”

She later added: “We’ve been trying really hard, by having a buying center or a website dedicated in that, to send that message” that they do purchase vehicles from consumers.

“And sometimes, we’re in the best position, because we’re going to write you a check and it’s going to clear. And you don’t have that one-on-one that you have to do with a regular person,” Walston said. “So, it’s been helpful and we’ve noticed, especially with people trying to part (with vehicles) financially, it’s a tough spot everybody’s in right now. And so, if they have that extra car that they don’t want to cover insurance on or pay for, then we’re a great source for them.”

The full podcast with Walston can be found below: