Travis Wise, VP of Sales
There is no denying that the COVID-19 pandemic has wreaked havoc across multiple sectors. And the automotive industry is no exception. Following the news of the outbreak early last year, an international consulting firm, AlixPartners, estimated a drop of 36 million new vehicle sales globally. Unfortunately, the prediction has been true. As per the market statistics, auto sales in the U.S. alone dropped by 47 percent last year—plummeting demand for cars and causing many panicked car dealers to dump their inventories—in an all-out frenzy.
However, those deep in the trenches of the automotive industry believe the current situation is not going to remain all doom and gloom for car dealers. While the pandemic triggered a sudden dip in new car sales, it also created more demand for used cars. If we are to believe the industry trends, one factor driving this used-car demand is consumers who are concerned with the hygiene of public transports but don’t want to invest in costly new cars amid the pandemic. What does this mean for auto dealers? It means that they still stand a chance of reinvigorating their dealership businesses if they start selling the in-demand used cars at the right time, and for the right price.
So where is the hiccup, one may ask? Well, it’s important to keep in mind that this consumer interest in used cars is coming after most auto dealers have dramatically reduced inventories of both old and new cars.
As a result, many of them are now underequipped to handle the rebound and growing market demand for used cars.
“Nevertheless, direct vehicle trading between different dealerships can be a great way for auto dealers to gain inventory in the present landscape. This way, auto dealers can ensure customers never leave their shops empty-handed,” said Travis Wise, a thought leader in the automotive industry and the VP of sales at DealersLink.
And this is exactly what DealersLink is helping car dealerships achieve. DealersLink—a leading name in the automotive industry—offers innovative inventory solutions to facilitate auto dealers in trading used cars with unprecedented ease.
A Simplified Approach to Dealer-to-Dealer Sourcing
Wise points out that it is imperative for auto dealers to properly appraise vehicles after carefully reviewing auto market data points and expected selling prices. Only then can auto dealers make sure that they’re either buying or selling a car at the best possible price, thereby maximizing their profit. “This is precisely where our company comes in. With our fully immersive car sales management software, auto dealers can evaluate, and trade used cars against different market data like never before,” Wise adds.
In order to simplify the car appraisal process, DealersLink has developed an end-to-end inventory appraisal platform called FastBook. DealersLink scans over 50,000 online dealership sites, to collate the most accurate true market data and easily appraise any vehicle. This real-time retail data can help auto dealers in assessing whether they’re pricing a trade-in correctly and forecasting the right profit margin. Furthermore, for auto dealers continuously trading used vehicles, the DealersLink Marketplace and the Trading Desk feature, help facilitate this. Auto dealers can use these features to sell their cars directly to another interested dealership without incurring hefty auction fees and transportation costs associated with traditional auction transactions.
With such powerful and intuitive solutions, DealersLink is in a continuous innovation cycle always strengthening its offering by adding a plethora of industry-first features. Wise believes the current demand for used cars can be expected to continue for another 3-4 years. At that point, consumers will feel safe about investing in new cars and the market equilibrium will return through the availability of new cars, rental cars, and lease returns. Until then, it is crucial for local car dealers to keep their inventory stocked and to capitalize on the growing demand for used cars in the current landscape. “With our impeccable dealer-centric reputation in the industry, we are laser-focused on helping auto dealers thrive and create a positive impact on the U.S. automotive market,” concludes Wise.