8:00 am, October 3, 2022
As the saying goes, time is money. This concept can be applied to all manner of scenarios, but in the world of remarketing it is vital.
Every vehicle a dealer wants to dispose of is potential profit locked up in the form of metal.
But the longer the vehicle remains unsold, the less profit potential that vehicle has.
Every day, the vehicle will be depreciating while also taking an increasingly expensive spot on the forecourt that could be used to retail higher-margin vehicles.
Selling faster also helps with cash flow that drives revenue and can be reinvested into further profit opportunities.
The profit earned per vehicle has never been more important than it is in today’s market, which is constrained by weak supply and inconsistent consumer demand.
Dealers must extract every penny they can from every asset they have, so more and more emphasis is being placed on the performance of their remarketing channels.
Historically, dealers have been limited to selling through physical auction houses or trading locally, but the physical process is cumbersome.
From start to end, the process can include vehicle collection at the dealership, transportation to the sales destination, inspection, refurbishment, valeting, imaging and allocating to an auction.
That’s all before waiting for the actual sale.
Unsurprisingly, this all means that it can take weeks to sell a vehicle at a physical auction, meaning slower returns and potentially less profit.
By removing the processes that burden physical auctions and putting control back into dealers’ hands, digital auctions help dealers to speed up their remarketing process enormously, earning more profit faster.
Dealer Auction marketplace director Kieran Teeboon said: ‘With Dealer Auction, it takes an average of just 2.9 days to sell a vehicle.
‘That means dealers can get cash back into their pockets faster, beat any losses caused by depreciation and free up more space for vehicles that will earn an even greater margin at retail.
‘Not only that, but vehicles sell for four per cent more on average through our platform when compared with traditional remarketing routes.
‘The way we do this is simple.
‘Our smart platform actively connects the right stock to the right buyer, sending stock alerts when vehicles have been added that match their criteria and letting them know which vehicles are popular in their area.
‘Our 5,000-plus buyers can search and buy vehicles at any time, meaning stock gets more bids on average.
‘Vehicles are sold faster and more profit is generated. It’s a no-brainer.’
To help illustrate the benefits of switching trade disposals to a digital platform, Dealer Auction has developed a profit calculator that shows how much trade profit dealers could be missing out on.
Teeboon said: ‘Many of us within the team come from a dealership background, so we understand how important it is to have the right tools available to generate every bit of profit possible.
‘That’s why we developed the profit calculator – to support dealers in making the right decisions for their business.
‘We truly believe that Dealer Auction is the right platform for dealers to get the most out of their trade disposals.
‘But don’t just take our word for it. I urge you to try out the profit calculator to see how much additional profit selling through Dealer Auction could make your business.
‘And if you like what you see, do not hesitate to get in touch with us. We’re always happy to talk with you and share more information.’
