The Future to Managing Your Inventory

Amid the coronavirus crisis, the automotive industry has been just one among many to see drastic changes in function. The crowded, fast paced auctions that used to draw thousands of dealers is no longer the go-to source for stocking up on inventory. What can dealers do now to manage their inventory and meet the rising demand for used vehicles?

We recently spoke with Alex Kwanten of Ward’s about how services like CarOffer make the purchase of inventory outside of a dealer’s region exponentially easier than ever before. Although the future is uncertain, one thing is looking clearer: the days of traditional automotive auctions may be behind us.

As this article highlights, online platforms such as CarOffer are looking more and more like the future of automotive buying, selling, and trading.

Take a moment to read the story and learn how several dealers from different parts of the country are using CarOffer to manage and obtain vehicles they might not otherwise be able to get from conventional auctions.

Pricing and the Crisis [From Wards]

Tools that center on guaranteed offers based on exacting appraisal and pricing data are as challenged as the rest of the industry by the coronavirus crisis.

“This is a tough market in which to do this,” says analyst Maryann Keller of Maryann Keller & Associates. “Nobody knows where used prices are going, and when the auctions open up, dealers don’t need inventory.” 

Still, the new systems offer advantages. “You’re still avoiding the fees and transportation issues (associated) with taking your car to auction where it may not sell at all,” Keller says. “If there is another dealer who wants your car, that may be the best option.”

CarOffer founder & CEO Bruce Thompson says, “Dealers typically rely on days’ supply, turn time, etc. That data today is completely unreliable because the industry has been shut down.”

He concedes that finding accurate pricing will be difficult but not impossible in the short term.