Pub. 1 Issue 3

VIRGINIA AUTO DEALER www.vada.com 34 Dealers Are Turning to Online Wholesale (Why All Online Auctions Aren’t Created Equal) BY Derek Hansen VP, OFFSITE SOLUTIONS MANHEIM 4 D ealers traditionally don’t consider their wholesale acquisition and disposition strategies as revenue- generating opportunities. But today’s wholesale vehicle landscape gives you many ways to generate revenue and protect your margins. At every turn in the used vehicle lifecycle, there are opportunities to increase speed and protect your margins by looking beyond retail to nd opportunity and potential pro tability in your wholesale business. Here are four reasons you should consider buying and selling online. Reason #1: Online wholesale brings e ciency that impacts your bottom line By far, the progression of today’s wholesale vehicle marketplace – from exclusively physical auctions to digital options that are literally available at your ngertips – is the most sure re way to maximize your bottom line and ght margin compression. For franchise dealers with a lot of trade-ins you need to dispose of, the digital marketplace is simply the smartest, most e cient way to sell directly from your lot. Not only do you eliminate shipping costs, you’re exposing your inventory to more buyers than ever possible at a physical auction. e result? More bids, higher returns and less time your capital is tied up in a vehicle. Conversely, if you’re a buyer, you can nd the exact car you need, quickly and e ciently in your own backyard, boosting your bottom line simply by avoiding travel and shipping costs. Reason #2: e online marketplace is becoming less risky e wholesale marketplace only works if buyers can trust that what they see and buy shows up precisely as described and depicted in the listing. Thanks to technology, the way cars are inspected and imaged is driving a level of confidence in vehicles that simply didn’t exist until recently. Now, you can view objective, detailed vehicle condition reports plus video and