Buy and Sell Cars from an Online Auction? No Way!

16 Dec

Guest Blog PosHadden, Dougt from:
Doug Hadden, ADESA

It’s hard to believe, but I still hear used car managers, GMs and owners tell me they refuse to buy vehicles from an online auction! If it was 1990, I could go with it. The reality is, it’s 2014 and those who still think online acquisitions are something those ‘geek types” do, will be left to sift through the leftovers. I’m not saying there will be an end to the brick and mortar auctions, there will always be a need for those. What I’m saying is, if you want to find the best possible selection of vehicles, the ones that have high retail demand, you better figure out how to make online acquisitions part of your regular buying routine.

There are many dealers that have successfully conquered buying and selling wholesale in the digital realm. It’s not as hard as you may think to set up a “war room” as some of my dealer friend’s have affectionately named the office where they have multiple monitors to bid and buy remotely at live auctions. They also bid and buy on static EBay style auctions day and night!
Is this something you can flip and switch and make happen overnight? No! But all you have to do is sit down and make a plan.

Plan to set aside the time understand the differences between online and in lane. Make a plan to get training and support from your on line auction. Make a plan to set up policy and procedures within your dealership’s wholesale team regarding on line purchases. Plan on making a couple of mistakes on your first purchases (it’s ok, it a learning curve). But most of all, plan on being able to find the cars you need to meet your used vehicle departments retail plan!

Learn more at Doug Hadden’s NADA Workshop:

Digital Whoelsale

1/22/2015      2:00pm – 3:15pm      3005W
1/24/2015      8:30am – 9:45am      3006-3008W

3 Responses to “Buy and Sell Cars from an Online Auction? No Way!”

  1. Tom Lombardo December 16, 2014 at 2:12 pm #

    Great advice — we follow the auto and heavy equipment industries very closely and the latter aggressively buys and sells online — often internationally, which can be the best place to sell their pre-owned equipment.

    Pay close attention to your counter party’s ranking, because it comes from people with whom he’s done business. Imagine if your dealership’s entire reputation was based upon Yelp — at these auctions, that’s what his ranking is.

    You’ll get one too when you accept delivery and pay on time.

    Doug, we’ve got a whole paper about changes in the auto industry, and we’d love to meet you at NADA. It’s going to be an amazing show!

  2. bruce mcconnell January 14, 2015 at 5:28 pm #

    You want dealers to buy more cars at online auctions? I am registered with a large dealer group as their buyer and here are a few tips. First, allow Auction Genius access to MMR on their glance screen. Get over yourself that MMR is the competition. I don’t care. It keeps me from engaging with Adesa.
    Second, make the condition reports relevant. There should be a 3.0, 3.25, 3.5 and so on. And….there should be a level where a 2013 Equinox listed as a 3.0 is devoid of roof dents. Nice that the auction rep pointed it out in the comments, but 3.0 or some number of condition should have a dent free guarantee I can trust.
    Third, the state that the vehicle is titled in should be on the front bid screen easy to see. I don’t like having to search to see if the rental I want to buy is another Hawaii car with rusty frame, pitted windshield and oxidized paint.
    Fourth, a tab where the bidder can enter a manual bid/offer would be most helpful.

    With that said, Manheim is far easier to purchase online than Adesa. I usually only buy from Adesa when in person. Online Adesa sales are like college dorm food. That brown thing is just “mystery meat.” Lots of problems that I hear constantly at sales. Sound sometimes works and other times not. Keep in mind I have a 70 mps connection with a lightening quick processor for online streaming. Adesa liveblock just does not work that well. Sorry.
    Bruce McConnell



    […] 1/22/2015 2:00pm – 3:15pm 3005W 1/24/2015 8:30am – 9:45am 3006-3008WClick here to read the original post on the NADA Convention & Expo […]

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