Why access to “fresh” trade-ins matters
Every dealer across the country knows that finding inventory has been more difficult than ever these past few years. But what is less discussed is how and why independent dealers in particular are fighting an uphill battle in their search for the right vehicles. And it comes down to one word: access.
While dealers of all sizes are having to find inventive ways to purchase cars, franchise dealerships still have had steady and easy access to trade-ins straight from consumers. But independent sellers don’t have such a clear path to acquiring these types of “fresh” vehicles.
Fresh trade-ins purchased directly from consumers have a twofold advantage when it comes to turning a profit at retail. One, they’re newer inventory, and haven’t been sitting out on a lot losing their buying potential. Two, there’s no middleman markup on the price that eats into their margin. So smaller dealerships aren’t just missing out on any old acquisition channel, they’re missing out on perhaps the best acquisition channel—one with low-risk and high-profit potential. It’s a huge disadvantage that’s only been made more clear in today’s inventory crunch.
A game-changing auction that brings fresh trades straight to dealers who need them most
To offer independent dealers the kind of consistent and easy access to fresh trade-ins that get great returns at retail, Cox Automotive has created some truly game-changing policies for both Upside buyers and sellers. Sellers who wholesale with Upside get a guaranteed floor price on every vehicle, plus the chance to keep a majority of the upside when that vehicle sells for more. It’s a great, low-risk deal that’s very hard to pass up for most at a time when the market is unpredictable.
Within days of taking in a trade, vAuto dealers can list it straight to the Upside auction, and have plenty of extra incentive to do it often. This is creating a one-of-a-kind stream of high profit potential cars into Upside Direct that can be accessed by any independent dealer, from anywhere in the country.
Plus, every one of these units starts bidding at 50% of MMR. Buyers can get them at a price that works for their market, and even have a chance to bring them in at a “steal” of a price. And with most vehicles eligible for complimentary DealShield coverage, Upside Direct buys are truly low-risk, high-reward investments.
With an ever-growing base of vAuto franchise sellers from across the country, Upside Direct is set-up to be a unique source of high profit potential inventory well into the future. And this reliable, direct line to consumer trade-ins won’t just help independent dealers fill inventory gaps in today’s tough market, it will help them thrive in any market.