Sourcing vehicles locally has become more difficult for dealers in 2020. After a major spike in supply early in the year, leases are being paid off in record numbers and dealers are holding on to more inventory, causing a sourcing strain across the industry.
While some see this strain as a major obstacle, I’ve been focused on enabling dealers to leap over it with ease by bridging the digital divide for our customers. With KAR Global’s shift to digital auctions, we’ve granted dealers greater access to vehicles and more profit opportunity, enabling them to work more efficiently than ever before.
Here’s how going digital is changing the way we look at sourcing inventory.
There’s more access to vehicles than ever before
Pre-COVID, the average dealership was choosing from about 650 vehicles when purchasing in person, usually from just one auction. The Buyers who are embracing digital are now accessing thousands of vehicles digitally from multiple geographies. Plus, they’re now purchasing all throughout the week, no longer tied to any specific location or sale day.
That’s because KAR Global has integrated our marketplaces, giving you easier and faster access to more vehicles. For example, ADESA.com enables you to source vehicles from ADESA Simulcast®, ADESA Simulcast+℠., ADESA DealerBlock, ADESA DealerBlock Prime℠ and now TradeRev. With these integrations, you’re given 24/7 access to over 60,000 vehicles daily.
We don’t just show you vehicles; we show you opportunities
There are a lot of platforms and a lot of vehicles to choose from, so how do you navigate it all? Well, we’re here to make it easy. By leveraging DRIVIN’s data and technology, we’re recommending vehicles tailored to your buying behavior and with the greatest profit opportunity for you.
These industry-leading features match dealers with nearly 50% more vehicles that can turn quickly while earning you a sizable profit. These vehicles bring in an average margin of $2,500 and turn in 35 days, which is 40% faster in comparison to market averages.
So remember, when you’re looking at our recommendations, either on ADESA.com or via a personalized email, no one else is seeing those same exact matches, because they’ve been curated specifically for you.
Distance is no longer a barrier
Before shifting our auctions to digital, dealers typically purchased “in person” from just one physical auction. After going digital, these same Buyers are now averaging purchases from roughly three different physical locations.
We are now seeing Buyers “digitally” attending new auctions in different states. For example, our Indianapolis auction is currently selling to Buyers (not just bidders) from 24 different states. That’s because in many cases, there’s significant vehicle price variation between markets, meaning you can find vehicles cheaper in other markets, off-setting transportation costs.
And with advancements in our inspection technology and training matched with products like ADESA Assurance — our optional 21-day vehicle return guarantee — dealers can buy with confidence from across the nation.
Digital means greater efficiency
Our goal has always been to not just give you greater access to inventory, but to also streamline your business. With integrated marketplaces and dashboards to support them, dealers can remotely participate in and easily monitor an unlimited number of lanes.
We’ve also designed plenty of tools to create efficiencies. For example, in just a few moments you can set up alerts to notify you of wins, being outbid, watchlist vehicles approaching the block and so much more.
However, nothing streamlines your buying experience more than Proxy Bids on TradeRev and AutoBids on ADESA. By setting the maximum amount you’re willing to pay (visible only to you), our system will automatically bid until you win the vehicle or your highest bid is exceeded — whichever comes first. With this simple tool you don’t even need to monitor the auction. You can set it, forget it, and focus on other key aspects of your business.
And while there’s greater marketplace access through digital, the experience is still quite similar to in-lane. In fact, it’s remarkably familiar.
Simply put, digital auctions aren’t here to disrupt your business, they’re here to help you accelerate it and KAR Global is here to be your partner on that journey, every step of the way.
The opinions expressed in the Go Digital series are the opinions of the authors only and not those of KAR Global.