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Why We Don't Charge Auction Fees

Jun 01, 2017





In the business world, sometimes the word disruptive is overused. Not every new technology or concept disrupts the way industries operate. In that regard, the DealersLink Marketplace truly has been and continues to be a disruptive technology.

As the first dealer-to-dealer marketplace in the United States (in fact, we coined the term dealer-to-dealer), this platform provides members with access to over $1 billion in used-vehicle inventory, and continues to save them millions of dollars in auction fees.

The Marketplace has been so successful and deals in such volume that we are occasionally asked, Why don't you do away with the no-fee model and just take a cut like the other auctions do?

The simple answer is that it's not who we are. We don't think of ourselves as a technology company that happens to work in the auto industry. Rather, we see ourselves as being part of the dealer community.

If you read the first part of our blog series on the history of DealersLink, you'd know that our founder, Mike Goicoechea, grew up in a dealership. He saw firsthand how hard it was to run a successful dealership and how profit margins could vary widely from month to month, affectig the livelihood of dealership employees and their families.

He also saw how auto auctions nickel and dimed dealerships, and how those fees added up. One of the basic philosophies of DealersLink is that we will always be an advocate for dealers, and will strive to develop innovations that will allow our members to do the following:

  • - Participate in a trading network that allows unlimited buying and selling without any buy or sell fees.
  • - Reduce wholesale transaction costs and increase retail grosses.
  • - Team up with other members to expand all members' inventory offering to their customers without adding flooring expense.
  • - Buy, sell and trade aged units without paying wholesalers.
  • - Save time by not having to go to as many physical auctions.
  • - Save time and money on reconditioning by selling clean, retail-ready inventory.
  • - Protect front- and back-end grosses.
  • - Have input by being able to suggest new features and options.

We know that our products increase dealership profits, but how much profit potential is gained depends on how much they use it.

In one case study, one of our Power Users realized total annual savings of $177,300 ($94,800 from auction savings plus $82,500 in lot-ready-time savings) and an extra $939,460 in total annual profit ($856,980 from retail profit plus $82,500 in wholesale profit). And that's just one example.

DealersLink succeeds when our members succeed, and our dealer-to-dealer Marketplace with no fees is the foundation of that success. That's why we're committed to it.


Weld County Case Study

The following study shows actual profit and savings from Weld County Garage, increasing their annual returns by over $1,000,000.



DealerLink: Dealer Direct Marketplace Case Study from DealersLink