Derek Hansen, Vice President, Offsite Solutions, Manheim
WHEN MARGINS AREN’T WHAT THEY USED TO BE
We know dealers are under pressure in the retail side, margins are compressing, and increasingly they’re looking to save costs where they can. And often, that didn’t include the wholesale process, the auction.
But more and more, we’ve created tools, particularly with Manheim Express, that make it easier than ever before for a dealer to list a car, have insight into the market evaluation of that car, improve the trade-in process and the liquidation of that wholesale vehicle all right from their lot, without transportation costs, reducing their holding cost. All of those savings hit right to the bottom line that will improve the net performance of your dealership as you think about that compression and improving your margins.
For a good used car operator, you want to make sure you are maximizing the return on those vehicles you are taking in and minimizing the cost, and that is what Manheim Express was designed for. It is literally the power of the Manheim Marketplace in the palm of your hand.
Manheim has been known as the leading wholesale marketplace in the United States for more than 70 years, and we can bring all of that audience, those eyeballs, and the name and trust that Manheim stands for, right to you, right to your lot. Now you don’t have to wait for sale day; you can get the car listed instantly. Literally, within a matter of minutes.
We also have cutting edge technology that allows you to create a 360 image of that vehicle, fill out the inspection or disclosure questions, and it gives trust and confidence to buyers who are seeing that.
NEW MANHEIM EXPRESS BUYER EXPERIENCE
As of this NADA, we are happy to announce we released a new buyer experience within Manheim Express that allows all of the Manheim buyer base to log into Manheim Express, see those cars, see the revolutionary imaging, buy them, and come get them straight from your lot. It cuts down your holding cost, your transportation cost, and it gives you better knowledge and insight into the number you can put on each and every car that comes on your lot as a trade-in.
We’re really transforming the wholesale auction industry and we’re doing it with the name and trust that Manheim stands for and with that audience of the marketplace. And we can bring that to you wherever you are. Whether it’s a dealer taking trades, whether it’s aged inventory, whether you have a holding yard–now you have the ability to list those cars wherever you are.
Lots of our franchise dealers use vAuto as the industry’s leading management software, and we’re happy to announce the integration with Provision that allows all of those used car managers to be able to list the cars straight from vAuto. No more logging into a different tool, no more looking between books, now you have that visibility of what the Manheim Express Guaranteed First Bid is and have the ability to list that straight to Manheim Express right from within vAuto.
It’s one step easier. You’re already in vAuto managing your inventory, looking at market and supply, looking at pricing, and now, should you choose to wholesale that vehicle, you can do it straight from within vAuto. You know what you’re into the car for, you know what you want to list that for. You can continue to try and retail it on your lot, and should you sell that car you can pull it down off of the wholesale marketplace and vice versa, should you sell it wholesale, you can pull it off your retail lot and have it ready for your wholesale buyer to come to pick up. We’re streamlining that process to make it as easy as and efficient as possible which allows our dealers more time to focus on retailing and improving their sales and margins and not to be tied up with their wholesale process.
DIGITAL IS TRENDING
We’re still working with our economists, given the changes we’re seeing with the SAR, and right now there’s a lot of sensitivity with the economy, but we do know from the trends that we’re seeing more and more of our dealers are using digital and digital tools as the way to sell wholesale inventory or to purchase wholesale inventory. If you’re not using the digital wholesale channels, you’re missing out. As a seller, you’re missing out on potential buyers. And as a buyer, you’re missing out on potential vehicles.
We saw over 75% growth in dealer volume that was sold from outside of our auctions last year. So it is an incredibly hot channel when we look at the way you can transact within the Manheim Marketplace. And we’re excited to continue to develop the tools to make it easier than ever before.
It changes where you think inventory is available. You want to make sure you’re getting access to the best vehicles as soon as they’re listed to get the earliest crack at the right inventory for your lot to give you the best opportunity to sell those vehicles. And that’s where digital comes into play.
KBB DRIVING LEADS
KBB presents tremendous value as that is the brand consumers know and recognize, and we’re excited to partner with them. As KBB brings that consumer to your lot, now you have an easy and seamless option to also send it away. Manheim Express presents that option in partnership with a KBB ICO (or instant cash offer process). We really see them as beneficial to the dealer and complementary and bringing more leads and fresh trades to your lot, allowing you to choose whether you want to take that vehicle in and retail it or if you want to wholesale it, again having the easy path to send it to the auction or list it digitally.
CUT THE WASTE
Cut down on holding costs, cut down on transportation costs, and bring more buyers to get a better return and improve the bottom line for the wholesale process.
Download the app now: www.manheimexpress.com.