When it comes to wholesale operations, dealers can capitalize on new technology in a variety of ways to increase efficiency and maintain healthy profit margins. CBT News anchor Jim Fitzpatrick spoke with Derek Hansen, VP of Operations at Cox Automotive, about the company’s wholesale market solutions during this year’s NADA Show in Dallas.
Key takeaways:
1. Last May, Cox Automotive combined the powers of KBB Instant Cash Offer with vAuto and Manheim data, to launch Upside Direct, a digital auction solution, that enables dealers to accept every wholesale car with guaranteed profit.
2. Upside Direct is now used by over 250 dealers, and Cox Automotive has delivered over $4 million back to dealers through the platform.
3. On average, $750 of ‘upside’ is delivered for every car sold.
4. The solution has received excellent responses from users and is continually rolling out in locations around the country, like Milwaukee and the Caroline states.
5. Additionally, with the help of ProfitTime GPS, car dealers can execute their variable inventory management strategies, and know exactly what to aim for in terms of profits.
“in wholesale, the dealer takes risks—there’s always uncertainty in how and when they time [inventory] and get it to the market. The idea is we can connect these workflows to remove that uncertainty and drive more profit for the dealer.” —Derek Hansen
Notable background:
— The inaugural sale on Upside featured almost 90 vehicles, with 270 bids in the first five minutes.
Click here for more 2023 NADA Show coverage on CBT News.
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