In a move aimed at reshaping the wholesale automotive market, Cars Commerce has announced the acquisition of DealerClub, a digital platform designed to streamline dealer-to-dealer transactions. Brian Kramer, Executive Vice President of Cars Commerce, and Joe Neiman, President of DealerClub, join us on the latest episode of Inside Automotive to discuss how the acquisition will enhance efficiencies for dealers and further integrate with Cars Commerce’s existing tools like AccuTrade.
Brian Kramer emphasized that Cars Commerce naturally fits with DealerClub by leveraging its network of 20,000 dealerships and integrating tools like Dealer Inspire websites and AccuTrade. This merger aims to provide dealers with a more efficient, low-overhead platform to buy and sell vehicles without the burdens of traditional auction systems. The goal is to reduce inefficiencies in the wholesale process, offering a seamless experience with minimal operational complexity.
Meanwhile, Joe Neiman highlighted the industry’s shift away from physical auctions, citing the time constraints and risks involved in transporting vehicles. He pointed out that every time a car is moved, it faces potential damage or loss, which online auctions help mitigate. DealerClub enhances this digital transformation by bringing seller reputation into the equation, which ensures transparency and trust in wholesale transactions.
A key advantage of the DealerClub and AccuTrade integration is the ability to connect franchise dealers, who typically have more trade-ins, with independent dealers, who excel at retailing used vehicles. Kramer shared a real-world example from the NADA Show, where a dealer, George Saliba of J&S AutoHaus, purchased a vehicle through AccuTrade and resold it on DealerClub within 30 minutes. This efficiency underscores how technology can optimize wholesale operations.
Neiman further clarified that DealerClub promotes ethical business practices, setting itself apart from platforms that facilitate vehicle dumping. The platform relies on a reputation-based system, similar to TripAdvisor, where ratings and reviews influence dealer credibility. This approach ensures that only reputable dealers thrive on the platform, naturally filtering out unscrupulous sellers.
For dealers looking to maximize their reach, Neiman stressed the importance of listing vehicles on platforms like DealerClub, which offer extensive reach and risk mitigation. The process is simple—signing up takes just 15 minutes, and dealers can directly represent their vehicles instead of relying on third-party condition reports. This level of control, combined with a commitment to process-driven operations, allows dealers to optimize wholesale profitability and maintain strong industry relationships.
"In the world of wholesale…. relationships matter. Relationships are paramount. So when you look at the folks that survive in wholesale and thrive in wholesale, it's because they do good, honest business for the long haul. And it's so easy to jump into wholesale and do bad business and get away with it for a while. We are on the forefront of a paradigm shift, saying enough is enough.." – Joe Neiman
