Digital Auto Marketing is Not the Future, It’s the Present
Adapting to a New Digital Marketplace
Because of the recent pandemic, buyers and sellers are now forced to accept and learn new ways of doing things. While the shift to digital has slowly gained ground, the recent closing of auto auctions across the country due to the COVID-19 outbreak will give both dealers and auctions a pretty good look at how the immediate conversion to total digital commerce works in the automotive marketplace.
While it’s been speculated and remains to be seen how much of the industry’s wholesale auction volume eventually will go digital, it has been growing over time. Presently at Manheim Auto Auctions, over 48% of transactions are now online, and more than half of sales are now online at Adesa.
Manheim has stated that its digital volume is up 17% year over year. Off-site transactions, including mobile, are up 72% this year to date. Manheim is investing $200 million in digital efforts over the next two years to enlarge its digital footprint. The writing on the wall is that all the major auctions are looking to convert the majority of their transactions to digital platforms in an effort to reduce the costly overhead of running cars through the physical lanes, overcoming newcomers competing in the market.
With new fast-moving technology, selling vehicles online as opposed to in-lane can be a challenge for dealers if they don’t know the auction ropes. Remote buyer’s decisions are 100% based on the vehicles CR. The grade and images make the determination of whether a buyer will even consider bidding on your vehicle. Additionally, the after-sale process can get frightening when you consider the three different sets of arbitration rules based on if the buyer purchased your vehicle in-lane, via simulcast, or through OVE.
AMP Remarketing’s Digital Selling Solution
AMP Remarketing has partnered with Manheim PA to launch a new Digital Event Sale to begin in May 2020. It will offer buyers the opportunity to procure only Frontline and CPO-Ready inventory directly off franchised dealers’ lots. All vehicles will reach a broader market through a national marketing campaign attracting more buyers, meaning more competition for sellers vehicles.
AMP will be giving all buyers a $200 transportation rebate on all purchased vehicles, as well as a 14-Day Buy-Back Guarantee to kick off the upcoming Event Sale. AMP has also negotiated a $300 Flat Sell fee with Manheim PA. for the first 25 sellers who sign up with AMP on any and all units, as well as onsite comprehensive CR’s to include over 20 images and R/O’s for better transparency.
Dealers will be able to list aged units for auction while still remaining on their lots until the morning of the sale making them constantly available for retail and floor plan checks rather than stranded at the auctions. When the vehicle is sold, the selling dealer will have 3 days in which to ship it to the auction or the buyer will have the option to pick the vehicle up at the selling dealers lot, thus saving the dealer transport costs.
AMP is inviting all new car franchised dealers to take a FREE 30-Day Test Drive to AMP UP YOUR PROFITS!