Page 35 - GIADA-Dec 2017-Final

AUCTIONS

Even though he contends he’s old-fashioned, Bruce Jewer of Jewer Family Holdings turns “The nice thing about it is that we can buy
Wilkes maintains a strong website and lists over $1.3 million to $1.4 million a month cars at virtually any auction and they’re
his cars on third-party sites. and contends dealers have to turn their automatically floorplanned that day,” he
inventory no less than nine times a year to be said. “They automatically get rid of the
“When customers come in, they’ve already profitable. He maintains that pace because liability on our floorplan and wire the profit
searched the Internet,” Wilkes said. “They he has a system set up with his auction that into our account that very night, and that’s a
already know what they want when they helps speed his vehicles to market by getting cash flow help.”
come in, so it saves a lot of time. Going the vehicle auction-ready for any type of
digital definitely pays dividends for us.” sales channel. Dealers who need transportation, like the
Auto Store Group’s Joe Wilkins, can order
TAKING GUESSWORK OUT OF ACQUISITION “I pay for a 7-day pre-sale inspection, it in a few clicks from the auction – or
Scott Frankel, one of the owners of Houston a condition report, recon and a proper online. Wilkins uses a digital self-managed
Wholesale in Albuquerque, N.M., is among a cleanup,” he said. “It doesn’t matter whether transportation platform that matches dealers
growing number of dealers who use multiple a vehicle has 20,000 miles or 120,000 miles, with U.S. carriers.
channels to buy and sell cars. I apply the same process to each and every
vehicle so the dealers don’t have to do it. “From my phone, I post a load and what I’m
Many of those dealers use inventory “I sold around 700 cars in 2016, and I didn’t willing to pay,” he said. “I get calls back in a
stocking tools to help them navigate those have to buy a single one back in arbitration.” few minutes.”
multiple channels. Frankel, who specializes
in sourcing vehicles for military personnel at Jewer said that’s a big advantage when selling For dealers who don’t want to go the self-
nearby Kirtland Air Force Base, uses vAuto’s digitally. managed route, there are full-service
Stockwave to find in-demand vehicles for transportation and logistics providers
his market. “Dealers know the vehicle has been cleaned integrated with many auction locations that
up and they can see from the condition can handle all the details of getting your cars
The tool helps Frankel determine the report what they’re getting,” he explained, from point A to point B -- another key to the
maximum he can afford to pay for a vehicle, “which is a vehicle that won’t need a bunch anytime, anywhere auction cycle.
while factoring in transportation, recon and of work that they can sell immediately.”
other costs. ANYTIME, ANYWHERE MEANS MORE
Condfition reports are also hugely OPPORTUNITY
While Frankel does the majority of his important to Music City Autoplex’s Van “If you’re not Internet-savvy, you are
business at physical auctions, he also Stewart, a disciple of simulcast auctions probably not a very successful car dealer, or
wholesales digitally. who gets a condition report on every car he you’re old-school and you’re not growing,”
sells and runs. Wilkins said. “You have to be willing to
“I don’t put $15,000 Camrys online,” he said, embrace technology and embrace changes
“but if I have a 2006 Jeep Wrangler with “If you sell online, you have to have good in order to grow.”
50,000 miles and a 4.9 condition, I’ll be able condition reports,” he said. “If you are a No matter your preferred auction channel,
to sell it the online wholesale marketplace.” buyer and you have a CR on a vehicle, you’re there is a way for you to get quality wholesale
going to get a really good feel for what that vehicles. That said, your competitive
THE ERA OF BUYING CONFIDENTLY car is like.” advantage comes from using as many
One of the primary reasons auctions have channels as possible to speed your vehicles
been able to move to a 24/7 cycle is buyers’ THE ERA OF BUYING CONVENIENTLY to market and streamline your operations to
ability to view condition reports online To support the 24/7 auction cycle, it takes reduce costs.
and get purchase protection. That level of bringing all the pieces together – from
transparency is really unprecedented and has presale activities like CRs through the actual Even if you’re an avid fan of the physical
significantly moved the digital marketplace in-lane or digital sale all the way to helping auction and believe the only way to get the
into an upward trajectory. dealers fund and transport their vehicles. right cars is to kick a few tires, the digital
efficiencies in today’s modern auction
Condition reports boost buyer confidence Top floorplan providers are offering locations can help you do business in
for any auction channel, but they’re especially seamless integration with auctions to a much more efficient, effective and
effective for digital buyers. Even so, many provide financing for the entire acquisition profitable way. n
buyers mitigate their risk altogether with process, from purchase and inspection to
assurance products like Cox Automotive’s title services and transportation. Alan Lang is divisional vice president, mobile
DealShield or ADESA Assurance, which lets and local auctions for Cox Automotive. He
them return a vehicle for a full refund. For Stewart, it’s all about cash flow and can be reached at Alan.Lang@coxautoinc.com.
saving time.

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