Wholesaling – Multi Site Dealer Groups, Are You Taking Advantage of Every Opportunity?

To many times we have discovered that many multi site dealer groups are actually wholesaling against their other sites in order to achieve the maximum value for trade-ins and used car stock at auctions or sourced via wholesalers. In today’s age of attempting to maximise ever dollar, this in theory sounds ridiculous, let-alone the fact that this is actually happening in reality.

So the most recent example is where a large dealer group principle has told us about where one of their sites traded a car in for $19,000 (their local wholesaler was the best underwritten price) and the same company in a different location bought this same car from the wholesaler for $20,500 as they had a retail customer that wanted a similar car for retail money (this was the explanation for the other site paying such a variant in price but at the time didn’t know where the wholesaler had sourced the car from) to which they were able to do a retail deal and make the appropriate profit – lucky!

So for the sake of a phone call in the case of the wholesaler or in another angle some will look at this as lacking of internal communications of multi-site dealer groups, the wholesaler made a nice profit of $1500 for the cost of a phone call, or again from the other angle the dealer group lost $1500 profit for not having a better internal wholesale process. The wider effect of the second instance (the dealer group losing out) is that potentially how many more of these cases are happening, not to mention getting rid of stock that other sites within your dealer group may want to buy or at least underwrite the wholesale price so they get to source better stock and keep it within the group, therefore reducing the need to have full time staff on the road constantly buying from external sources when if they were to look at using technology, this situation could easily be overcome, not to mention the reduction of costs of complete “buying” teams sourcing stock full time and reducing your operating costs across the board!

So what if you could implement a web based system that would instantly notify every one of your used car managers/buyers at each of your dealerships nationally, each time your trying to trade a car and do a deal allowing them to instantly reply to the requester either by phone or email therefore allowing you to build a used car wholesale network for your dealer group as well as an open national market of licensed motor dealers?

This will allow all of your sites nationally to stay connected and source stock from within while at the same time maximising your used car/trade-in stock position, while making sure your sites aren’t wholesaling stock against each other therefore cutting into profits purely because your internal dealer network isn’t joined up, and allowing for stock that no-one internally wants to be purchased externally to a national audience. For more information please contact our sales team or click here.

 

 

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