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MyDealerOnline

"Sell Before You Buy"

Tricks of the Trade for Improving Inventory Acquisition from Auctions

Auto industry guru, Dale Pollack, recently wrote an article in AutoRemarketing on "four ways to turn auctions cars into advantage" at used-car dealerships. Pollack suggests the following recommendations for dealers to instrumentally source auction cars:

  1. Know exactly what to buy
  2. Know where to buy
  3. Buy at the right price
  4. Do it all faster

Any professional in the pre-owned industry knows that acquiring profitable, quickly-sold inventory requires a lot of skill and a little bit of luck. Unfortunately, predetermining the exact make, model, year, mileage, etc. of car that the next customer who walks onto your lot is going to want is not technically an equation that one can figure out easily beforehand. Honing down on particular skills and taking advantage of certain technologies that provide various inventory sourcing solutions will help dealers learn how to acquire top selling cars from auctions.  

The first strategic alteration to devising a profitable vehicle acquisition strategy is knowing exactly what to buy. Although some dealers may argue that part of the fun of auctions is relying on professional knowledge and taking a bit of a gamble to win a bidding war, why not combine those two thrills with a touch of car-specific precision? As technology continues to connect consumers to a greater selection of vehicles, dealers should also leverage their own technological resources to acquire a varied selection of vehicles to fill their lot.

In a congruent AutoRemarketing article, DealerSocket's, Michael Waterman, mentions that, “As the “traditional” customer continues to evolve and has significantly more choice, it’s critical that managers leverage a fully integrated inventory management platform to ensure that science, rather than anecdotes and gut feeling, is driving their vehicle-acquisition strategy.” There are a plethora of inventory management tools available for dealers, as well as unique inventory providers, such as MyDealerOnline. MyDealerOnline eliminates the guess work for dealers at auctions and allows them to bid on vehicles that customers already intend to buy. With the ability to display thousands of auction vehicles on a dealer's website using MyDealerOnline's platform, customers can actually request to order a car that is not even on the dealer's lot. With customers already requesting particular vehicles at auctions, it is simply the dealers job to go retrieve those vehicles. Dealers know exactly what to buy with MyDealerOnline's technology. 

Knowing where to buy is another key factor to sourcing inventory from auctions. As more and more competition enters the pre-owned sector, particularly with the influx of franchise dealers, independent dealers must acclimate by increasing their sources for inventory. "With increased competition to acquire auction cars, many dealers recognize they need to expand their sourcing efforts beyond the local auction," states Pollack.

Closed auctions make it increasingly difficult for independent dealers to compete with their franchised counterparts. A proactive alternative is resorting to online auctions, where independent
dealers can attend multiple auction lanes remotely. MyDealerOnline provides access to remote auctions straight from the dealer's website. Not only do dealers have access to thousands of offsite auction vehicles, but their customers can also choose from pre-owned vehicles at these remote auction locations.

Source: NIADA Independent Dealership Action Report Fall 2015

 

Another recommendation is using bidding precision and discipline in the lanes to ensure buying at the right price. Even the most competitive bidders need to stick to their maximum bid in order to guarantee a worthwhile profit. "Careful examination of a vehicle's daily profitability is a dealer's secret weapon," claims Waterman. Dealers now have access to tools that calculate each vehicle's profit potential before even making a bid. Imagine collecting a down payment on a vehicle and having a customer decide the maximum price they want you to bid on an auction vehicle?! Make that scenario a reality with MyDealerOnline, where dealers put the buying decision in the consumers' hands. Dealers are able to preset their profit margins and let the customer determine how much they are willing to pay before the vehicle is even purchased. 

The last key to profitable inventory acquisition is doing it all faster. The longer a car collects dust on a dealer's lot, the less potential for a profitable return that car provides. Rather than gathering aging inventory, have a customer lined up on the retail side straight from the wholesale line. MyDealerOnline serves to bridge the gap between wholesale and retail, connecting retail shoppers to wholesale vehicle suppliers. Shortened sale cycles allow more time for selling and less time bidding on the wrong cars. With a few strategy tweaks to inventory acquisition, along with the help of technologies like MyDealerOnline, independent dealers can maximize profits and improve inventory purchases for their dealership's advantage. 

To learn more, visit mydealeronline.com

 

Tips to Turning Inventory in an Infiltrated Market

1 week, 1 month, 2 months, uh oh, don't say it; 3 months you've had a car sitting unsold on your lot. Once you've hit that three month threshold with a car you thought was going to be the next quick sell, you know it's time to start looking at other options for getting that vehicle off your lot. The unit starts aging, the return on investment begins declining and your stuck with a car that nobody seems to want. 

Trends show that sales in the used-car market have, in fact, increased over the years and will continue to do so with 38.3 million used-vehicle sales industry wide in 2015, the best annual tally in eight years, according to Edmund's 2015 Used Vehicle Market Report. Even so, are used-car dealers turning vehicles quickly enough to reduce profit loss? According to Dale Pollack, founder of vAuto, "The average market days' supply for many dealers’ used vehicle inventories is creeping toward or past 100 days. Typically, this critical metric, which indicates how quickly a dealer’s used vehicles are likely to sell in a local market, hovers near 80 days." So, what's causing cars to sit longer on used car dealers lots? Well, first of all, the supply side is flooded with inventory given the reintroduction of fleet and off-lease vehicles into the market. With a higher supply of inventory, demand lowers, and inventory turn rates decline.

Pollack offers three recommendations for helping dealers increase their inventory turn rates: 

1. Minimize acquisition mistakes- Appraise auction and trade-in vehicles with a clear view of their market potential. Looking for a guaranteed way to reduce acquisition mistakes? MyDealerOnline's auction inventory aggregation tool allows customers to browse off-side auction inventory from your website, where they can express interest and even place a deposit on a car ready for bid or buy at an auction. Imagine going to the auction already knowing which vehicles your customers want buy!? 

2. Match pricing to market conditions- With a high influx of vehicles on the supply side, you must match your inventory with competitive pricing models. With MyDealerOnline, you can set your own profit margins and dealer fees, buy cars at wholesale value and sell them to the eager customer at a reduced retail value because you did not have to finance the vehicle or wait for it to sell on your lot. 

3. Reduce average inventory age- Reduce each vehicles's days to sale in order to increase used vehicle performance and profitability. If you already know which auction vehicles consumers are interested in via MyDealerOnline's lead generation tool, then you have the opportunity purchase and sell a vehicle all in the same day. 

"Sell Before You Buy" can truly become a reality with MyDealerOnline. Turn inventory faster than you can flip a pancake and keep your profit margins high in a supply heavy market. 

MyDealerOnline Receives $1M in Funding to kick off the New Year | Business Wire

LANGHORNE, Pa.--(BUSINESS WIRE)--MyDealerOnline®, Inc., the only digital product that allows car dealers to broker wholesale auto auction inventory straight from their own websites, is starting the new year off strong after receiving $1M in funding just before the close of 2015. With recent developments like new product features, prosperous partnerships and industry recognition, MyDealerOnline successfully secured financial support from the same group of investors as prior funding rounds. Now totaling $3.25M in funding, the additional $1M allows MyDealerOnline to focus on increasing its subscriber base, fostering growth among new and existing partnerships, and expanding its efforts internationally.

Tech startup, MyDealerOnline, receives $1M in additional funding to revolutionize the auto remarketing industry.

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MyDealerOnline’s revolutionary technology has yet to be introduced to the automotive remarketing industry. A B2B service developed as an advantageous tool for remarketing vehicles, MyDealerOnline provides dealers with a greater inventory selection without increasing their working capital requirements or overhead availability. Contrary to popular websites designed to bypass dealers like Beepi and Vroom, MyDealerOnline works directly with dealers to help them satisfy consumer demand. “MyDealerOnline helps dealers engage with more retail customers by offering greater inventory selection to a wider audience,” states Scott Stephens, Vice President of Business Development. Even with the infiltration of automotive marketplaces online today, consumers still rely on dealers not only for purchasing vehicles but also for trade-ins, warranties, services and other add-ons available only from the professionals.

MyDealerOnline aims to revolutionize the car buying process for both the consumer and the dealer. Dealers can obtain more customers and sell cars without upfront capital investments while consumers have more options shopping at their local dealer. With inventory secured from local auctions surrounding Greater Philadelphia, nationally and auctions overseas, MyDealerOnline provides an opportunity to revolutionize automotive remarketing for dealers everywhere.

About MyDealerOnline®

MyDealerOnline® is a revolutionary digital product that allows car dealers to broker wholesale auto auction inventory straight from their websites. MyDealerOnline removes the guessing game from the wholesale car buying experience and enables dealers to “Sell Before You Buy.”

Contacts

MyDealerOnline, Inc.
Carly Fitzpatrick, 215-289-0500
cfitzpatrick@alteso.com

Source: MyDealerOnline Receives $1M in Funding to kick off the New Year | Business Wire

"Sell Before You Buy"

Have you ever gone to the car dealer and not found the car you were looking for? 76% of consumers start their car buying process online, making it almost impossible for a used car dealer to have the car they want to purchase. We are filling the void by providing virtual inventory to the dealer's website.

MyDealerOnline is a wholesale to retail product that allows a used car dealer to sell a car before buying it which is no out of pocket cost to them. We partner with auction houses and take their available inventory feed and place it on the used car dealer's website. MyDealerOnline takes the guess work out of the car buying experience and allows you to "Sell Before You Buy."