COMMENTARY: Quality images can help dealers sell vehicles at auction
The automotive industry is in the midst of a pressing challenge. Auto dealers are grappling with the issue of their inventory languishing on the lot for extended periods. This situation is not just a minor inconvenience; it’s a significant threat to the dealership’s cash flow and overall profitability. The need to expedite the movement of vehicles to wholesale auctions has never been more urgent.
Dealers can no longer afford to wait, sometimes for weeks, to take high-quality photos of vehicles. However, dealers must also balance the value of third-party condition reports by quickly posting “retail” photos for online auctions. Swift action is required to ensure that the cars are sold at auction promptly and profitably to maximize return on investment.
A recent survey by Redline Automotive Merchandising underscores a crucial element in this process: the significance of clear and well-executed photos. The survey findings highlight that high-quality images can notably boost the perceived value of a car on the retail side. This discovery holds equal weight in the wholesale market, where visual disclosure is pivotal in attracting wholesale buyers and driving up the sale price.
In the context of wholesale auctions, a vehicle’s presentation is paramount. Dealers must leverage the power of good photography, appropriate disclosure, and third-party credibility to make their vehicles stand out in a crowded market. Professionally taken photos can showcase the car’s high-value features, condition, and overall aesthetic appeal, which are critical factors buyers consider.
As part of a detailed condition report, well-done photos help create a positive first impression and influence a buyer’s decision, often leading to higher bids and faster sales.
However, the need for speed should not compromise quality. Dealers cannot allow vehicles to sit on the lot, waiting for the perfect photo opportunity. The goal is to move the vehicle to virtual auction as swiftly as possible to reinvest the money and sustain cash flow. This urgency necessitates a streamlined process for capturing high-quality images, which should be an integral part, not an afterthought, of a high-quality wholesale condition report.
The correlation between good photos and vehicle value is clear. High-quality images can enhance a vehicle’s marketability, making it more appealing to potential buyers and likely to fetch a higher price.
On the wholesale side, this translates to quicker sales and better returns. If the quality of your wholesale images is less than your retail images, you’re losing value at auction. Dealers who recognize and act on this need for speed and quality will find themselves better positioned in the market.
As auto dealers face the challenge of prolonged inventory times, the need to quickly post vehicles to wholesale auctions has become more critical. Redline’s survey underscores the importance of high-quality photos in enhancing vehicle value, a factor that applies equally to the wholesale market.
Dealers must prioritize swift action, leveraging good photography to make their vehicles attractive to buyers and ensuring quick sales. By investing in the right processes, dealers can enhance efficiency, reduce lot times, maximize returns, maintain a healthy cash flow and stay competitive in a fast-paced market.
Ryan Matejka is the COO of Redline Automotive Merchandising.