Page 12 - GIADA july2020

HOW TO GET STARTED

WITH ONLINE AUCTIONS

By Zach Klempf, Founder & CEO, Selly Automotive

Independent dealers are in a race against Some dealers are understandably con- ry strategy. What are the characteristics of
time. cerned about using online auctions. How your best customers, and which vehicles do
can you buy a vehicle without being there they purchase most often? Which vehicles
The mission: Find the best used car inven- to physically see it, touch it, and inspect it? are the hardest to sell and the least profit-
tory, at the best prices, before the competi- able? Where is the opportunity in your lo-
tion does. While that’s a fair concern, there are thou- cal market to win new business?
sands of vehicles sold online every day, with
The challenge: Demand for used vehicles shockingly low arbitration rates. Modern With hundreds of thousands of wholesale
has never been higher. Plus, there is not online auction platforms give you the tools vehicles available online, it’s critical to nar-
enough time in the day to source inventory. to properly evaluate vehicles before pur- row down your possible options. By audit-
chasing. Dealers can finally trust what they ing your current inventory, you’ll have a
For some dealers, finding quality inventory find online. better idea of what vehicles to target.
has become a major challenge and almost
unsustainable. Lower margins and longer Online auctions can be intimidating to 2. MAKE A BUYING PLAN
turn rates are putting dealerships at risk. first-timers, but with a little guidance, any- The next step is to make a detailed buying
one can tap into this powerful market. Fol- plan. Your buying plan should be an active
That’s why many independent dealers are low these three steps to start using online document that you update before every vis-
turning to online auto auctions. auctions today: it to the auction, whether physical or on-
line.
Online auctions give dealers a larger vari- 1. AUDIT YOUR INVENTORY
ety of inventory, making it easier to find Online auctions are not much different from Your buying plan should include invento-
the right vehicles at the right prices. Plus, physical auctions. In both cases, the first step ry levels in each vehicle category, as well
dealers can bid, buy, and sell vehicles from is to take a look at your own inventory. as your purchasing goals for that day or
the comfort of their home or office. There’s week. It’s also wise to create buying criteria
no more time wasted attending physical Your first job is to evaluate the strengths for evaluating each purchase. For example,
auctions. and weaknesses of your current invento- if you don’t want to buy vehicles with over

10 | GIADA Independent Auto Dealer JUL/AUG 2020