Dealers are witnessing a major change in inventory acquisition as most auto auctions have migrated over to solely digital platforms. Additionally, there are a huge number of businesses offering dealers online digital services these days.
While all these platforms wouldn’t be possible if there wasn’t a demand to support them, it’s also true that the increase in online competition makes it more difficult for dealers inventory to stand out. With so many different options available, how do dealers decide which marketing platform will produce the best returns when offering aged or unwanted trades for wholesale?
While the utilization of new technology can increase the selling radius of certain units, they won’t always increase its exposure. For that reason, savvy dealers understand the need to employ multiple avenues for wholesale including local auctions (both online and in-lane), as well as utilizing some of the numerous phone apps that have become popular as of recent. Yet, in spite of all these wholesale tools available, I still see dealer principles shoot themselves in the feet over and over again by limiting their wholesale resources.
In my on my over 30 years in the automotive wholesale industry, I constantly see seasoned dealers repeatedly making the biggest mistakes when wholesaling rather than choosing the proper platforms to employ in order to gain the highest margins.