Dealer Remarketers Need to Go Old School and New Tech

Did you hear that Hen­drick Auto­mo­tive Group just chose Man­heim as its exclu­sive remar­ket­ing part­ner?

In this day of mobile devices, upstream remar­ket­ing, online auc­tions, and inven­to­ry man­age­ment, wouldn’t you say that phys­i­cal auc­tions might sound a bit….. old school?

So why would the nation’s sec­ond largest pri­vate­ly held deal­er­ship group make this deal?

Here are a few used vehi­cle mar­ket trends that might answer these ques­tions…..

Rea­son #1: Hen­drick Auto­mo­tive Wants to See More Remar­ket­ing Growth:
Hen­drick Auto­mo­tive, based in Char­lotte, NC, owns sev­er­al new vehi­cle brands – most notably Acu­ra, BMW, GM divi­sions, and Hon­da. New and pre-owned vehi­cles are both get­ting a lot of focus these days, as is the case for most fran­chised new vehi­cle deal­ers. Hen­drick Auto­mo­tive needs more staff train­ing and resources to take on its increased vol­ume in used vehi­cle sales. Man­heim is deliv­er­ing the used vehi­cle sales chan­nels and a vari­ety of busi­ness solu­tions such as remar­ket­ing train­ing for the deal­ers’ used car direc­tors; and set­ting up on the first Deal­er Trade Oper­a­tions, which are closed-vehi­cle exchanges giv­ing indi­vid­ual deal­er loca­tions to get the right cars to the right lots.

Rea­son #2: Auc­tions Have a Lot More Tech­nol­o­gy to Offer these Days
Just like Hen­drick Auto­mo­tive has found out, the major auc­tions are ramp­ing up their tech­nol­o­gy offer­ings. A few months ago, ADESA and Chrysler Group LLC Remar­ket­ing built on their rela­tion­ship to launch a new and improved ver­sion of the Chrysler Direct online vehi­cle remar­ket­ing web­site for fran­chised Chrysler Group deal­ers. Chryslerdirect.com is pow­ered by tech­nol­o­gy from OPENLAND, an ADESA sub­sidiary. Deal­ers have been pleased to view and pur­chase online from the Chrysler Group port­fo­lio of used inven­to­ry pri­or to these vehi­cles being offered at com­pa­ny closed auc­tions. Also, inven­to­ry that used to be only avail­able on the dis­count­ed Chrysler Online upstream auc­tion site is now acces­si­ble on the Chrysler Direct plat­form. Chrysler need­ed the lat­est in remark­ing tech­nol­o­gy that ADESA has to offer.

Rea­son #3: Deal­ers Need to Best of Both Worlds in Auc­tions and Tech­nol­o­gy:
As Black Book’s Ricky Beg­gs told us ear­li­er this month, deal­ers are still going to phys­i­cal auc­tions to get a real world expe­ri­ence of the vehi­cles and mar­ket envi­ron­ment – they need to feel what the atmos­phere is like out there. At the same time, Black Book is mov­ing for­ward in new tech­nol­o­gy offer­ings, launch­ing Black Book Dig­i­tal at the NADA con­ven­tion. Black Book’s sec­ond-gen­er­a­tion mobile appli­ca­tion offers a new design with sim­ple-to-use fea­tures to help auto­mo­tive pro­fes­sion­als make smarter deci­sions. Deal­ers and their remar­ket­ing pro­fes­sion­als want the best of both worlds – the get out to phys­i­cal auc­tions when­ev­er pos­si­ble and to have their mobile devices con­nect­ed to the most accu­rate and reli­able vehi­cle data.

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