Special thanks to Used Car Market Reports readers who recently took our survey. The survey results shed light on high priority remarketing management issues for dealers. It also digs into how dealer staff are seeing used car listing sources – which has become a growing source of customers for dealers, and can also be a challenging sales channel for dealers to manage.
How familiar are dealers with leading used car listing sources? Very familiar and aware; as far as the rankings go, they were most familiar with used car listing source providers in the following order: AutoTrader, Cars.com, Carfax, and Kelley Blue Book.
The open-end comments on used car listing sources by dealer management were very insightful to read. Most of the survey respondents were in three dealer management categories: owner, principal, president, or chief executive; used vehicle/CPO manager; and general manager. If these dealer management comments were to be organized by topic categories, they would fall in this order (in terms of how many comments were made on each topic):
What Dealers Care About in Managing Used Car Listing Sources
• Performance: exposure, lead generation, consistent and trackable traffic
• Pricing: competitive pricing right for that market area, best for market penetration
• Ease of Use: easy to navigate and read for the end-user
• Valuation: current vehicle value information for users
• Condition: accurate condition reports and vehicle photos
• Transparency: honest reporting the customers can trust
• Vehicle Listings: reasonable car listing fees, and realistic vehicle listings
As for the challenges of working with used car listing sources, dealer staff submitted a wide range of concerns. One of those concerns is that the price of the used car is over-emphasized to consumers. That doesn’t communicate the other features and distinctions of the car such as its color, equipment condition, mpg, and other factors. Fees that are being charged by providers is another significant concern; dealers understand that used car listing sources have become a growing and increasingly important channel for remarketing, but the profit margin on these transactions need to make it worthwhile.
For those reading Used Car Market Reports, here are the most important issues, by order of importance, that they want to see covered in the newsletter:
Rankings of the most important remarketing issues
1. Used vehicle value trends
2. Vehicle condition reports
4. Used inventory management resources
5. Supply volumes from off-lease, off-rental, and other sources
On the wholesale used vehicle market side, the top four most important issues are: wholesale pricing trends; online auctions and videocasts; and “Reconditioning” tied with “Vehicle inventory management.” On the retail used vehicle market side of the business, the top three topics are: retail volume and pricing trends; used car listings; and vehicle history reports.