Assessment & Analysis of the Current Used Vehicle Market
by Michael Pochan, Lecturer, CEO, Software Engineer and professional educator with Carnegie Mellon credentials.
WHAT IS THE SITUATION?:
1) Auction Sales Volume Dropping as much as 40%:
2) Finding the Cars Customers Want online :
3) Auction Channel is Now migrating Online:
4) Mercedes Benz Credit selling off-lease vehicles directly online
WHAT TO DO ABOUT IT:
Be aware of trend & consider adopting online bidding & auctions.
Mecum Auctions & other auctions are taking on-phone bids also
Top 30% of UC dealers continue to find cars for customers online.
Franchise & Independent Dealers & UV buyers should take a minute & review the implications of the increase in online used vehicles sales.
Dealers and Used Vehicle Marketers Becoming Alarmed by Rising Inventories
The high number of unsold vehicles across the industry retreated slightly, but
78-day supply was the highest number for summer selling season since reached 85 days in 2009.
Half of the total unsold cars and light trucks in May were either General Motors, Ford or FCA
See, Ingest, and act on the stats and content of the Automotive News industry alert.
Current Car Buying Process is in Peril
87% of Americans dislike something about car shopping at dealerships
61% feel they’re taken advantage of while there.
86 % of car shoppers conduct online research before visiting a dealership
Vehicle buyers are increasingly seek to accomplish entire purchase online.
Reality: Consumers have no choice but go to a Dealership.And they don’t like it.
Dealers need to do more to work with buyers who seek to buy on line
Traditional dealer business model could be in peril
See positioning & recommended action-ables from Mike Pochan, Founder of LeaseTek and respected automotive industry leader and analyst