Sourcing the right used car inventory remains a major challenge for dealers. OPENLANE is a digital wholesale marketplace built to address that directly. The platform gets dealers to the right car with less friction and more confidence.
Joining us on today’s episode of Driving Solutions is Justin Zane, Senior Vice President and President of U.S. Marketplace and Services at OPENLANE. Zane says OPENLANE’s goal is to make wholesale easy so dealers can be more successful.
The state of used car sourcing
Digital wholesale has expanded the playing field for used car dealers. The average vehicle sold on OPENLANE ships over 400 miles. Dealers are no longer confined to two or three local auctions to stock their lots.
There’s another benefit on the sell side. Wholesale vehicles leave the local market entirely. They don’t land at a competitor down the road.
Zane says when it comes to off-lease inventory, the majority of whatever hits the broader market has already been filtered through the platform first.
Getting dealers what they actually want
Dealers want the right inventory, quickly. They want the cars they buy to arrive looking exactly like what they purchased. When something is off, they want a smooth returns process and a real person to help.
"(If I'm a dealer) I want to receive the inventory that I think I got, that I think I ordered. I want to make sure when it lands at my lot, it looks the way it was supposed to."
Zane says OPENLANE backs that up with industry-leading protections for buyers and sellers. Dealers using OPENLANE’s transport option start the return window when the car lands, not when they buy it. For a vehicle shipping from across the country, that’s a meaningful cushion.
The off-lease solution to sourcing
The majority of off-lease vehicles flow through OPENLANE first, Zane says. Dealers on the platform get an exclusive first look before the inventory reaches physical auctions or any other digital channel. For dealers chasing 30,000 to 50,000-mile units, that early access matters. Those vehicles rank among the most attractive on the market today, given today’s affordability pressures.
The timing works in the dealers’ favor. Zane sees strong demand lining up with the wave of off-lease vehicles returning to circulation.
“We love that off-lease inventory coming back into the fold. We really do. I think it times really well. I think there’s a big desire for that.”
Putting AI to work for dealers
AI applications are a growing trend in the auto industry, with uses in nearly every process. But Zane says AI isn’t replacing the fundamentals of how dealers buy and sell cars. It helps buyers and sellers find the right inventory faster, he says.
Zane experienced the AI approach to car buying himself. He needed to buy his daughter a car. He used AI to narrow the search. He still test-drove four vehicles and bought something different from what the search turned up.
“That purchase is still an emotional purchase. It’s a big purchase. And I’m in the car world, and it can still be intimidating,” Zane said.
Zane says OPENLANE puts AI to work in specific, practical ways. Audio diagnostics flag engine issues by sound. Physical damage detection is growing in adoption. A predictive pricing tool, demoed at NADA, helps dealers forecast vehicle value 30, 60 and 90 days out.
Finding a fit for every buyer
Dealers are thinking more carefully about every purchase, Zane says. Net costs, sourcing distance, and purchase guarantees are all front of mind now.
High-mileage units are no longer the liability they once were. Dealers put 90,000-mile vehicles straight on the retail lot, Zane says. The cars are simply better built than they used to be. Newer models retain contemporary styling longer, keeping older inventory competitive.
Large franchise dealers are retailing vehicles they would have wholesaled a few years ago. The affordability squeeze pushes them to find margin wherever they can.
Despite the pressure, Zane says inventory is available at every price point. The range runs from $750 units to six-figure exotics. The opportunity is there for dealers willing to source strategically.
Fixing the pain of having too many choices
The inventory problem has flipped. Too much choice can be as difficult to navigate as too little, Zane says. Dealers worry less about finding inventory and more about missing the right unit in an oversized marketplace.
Filters and search tools help, but they raise their own question. When you narrow the results too much, good cars could get left out. Zane says OPENLANE is focused on broadening what dealers see in a search without overwhelming them.
“Our purpose is to make wholesale easy, so our dealers can be more successful,” Zane says.
