Differences Between Online Dealer Marketplaces

by | Jul 15, 2020 | Uncategorized, Used Car, Wholesale | 0 comments

Covid19 forced closures at auto auctions across the United States. This brought many dealers to dip their toes into online dealer marketplaces for the very first time.

Through it all, dealers’ wholesale demand and auto auction pricing held strong. It’s now apparent that sourcing vehicles with a digital marketplace is imperative to supply dealership inventory needs.

Dealerslink is the originator of the first dealer-to-dealer marketplace. Today, there are plenty of choices for dealer-only online marketplaces. These include Manheim digital marketplace, ACV auto auction, Carmax auctions, Hertz Dealer Direct, Adesa online auction, BacklotCars, and SmartAuction, to name a few.

So how does the DealersLink marketplace differ from other online dealer auctions and marketplaces?

In the video below, Dealer Consultant Garrett Smith takes us through a couple of buying scenarios on the DealersLink Marketplace. Smith highlights two differences between DealersLink and other dealer-only online auto marketplaces…

Here’s a recap of the two main differences between DealersLink Dealer-to-Dealer Marketplace and other online dealer marketplaces…

Difference #1: How the dealer-to-dealer sales transaction process works

One of the main differences between DealersLink and other dealer marketplaces is the way the transaction goes down. On other dealer-to-dealer car sales platforms, when a buying dealer clicks the Buy-It-Now button, he owns the vehicle. This process lacks safeguards. It results in problems for both the buying and the selling dealers.

The buying dealer has no opportunity to validate or reconsider his decision. Likewise, the selling dealer must immediately produce the vehicle for the buyer. If not, they must pay a penalty, an “un-buy fee.”

On DealersLink, there’s a validation process before the deal is sealed. When a buying dealer clicks the Buy-It-Now button, it doesn’t instantly close the deal. Instead, it submits a buy bid. The selling dealer then has time to track down the vehicle and make sure it’s still available and in the same condition.

Once confirmed, the seller generates a purchase order within DealersLink to be signed by the buyer. The buyer then has 48 hours to review the deal to make sure it’s still the right vehicle for them. Once the purchase order is digitally signed, the deal is complete. The buyer then arranges payment and transportation.

Difference #2: The condition of the vehicles in online dealer auctions

The second key difference between the DealersLink Marketplace and other online dealer auctions is the vehicle condition. This difference in condition also means a difference in both the time to frontline and the actual cost of the vehicle.

Most dealer-only online auto auctions take about 30 days from closing to be front-line ready. Once the vehicle is shipped, it will need to run through the shop, receive needed repairs and maintenance, and get freshened up. Once retail-ready, then it’s time to post stickers, take photos, and place the vehicle on the front line.

This 30-day timeline carries a cost with it. Not only are there floor plan costs, but also opportunity costs. The faster you can turn your inventory, the more deals you can make. Additionally, there are added hard costs of reconditioning. In the end, the closing auction price is not the true cost of the vehicle.

DealersLink works a little differently. All vehicles are listed in retail-ready condition. In most cases, it’s less than two weeks from signing the purchase order to the front line. No need to run them through the shop. No need to refresh them. You simply transport the vehicle to your lot, replace the stickers, take the photos, and it’s ready for front-line retail.

This means you can buy with confidence with DealersLink. The buy price you submit is the real purchase price. No worries of bad condition surprises devouring your margin. No need to tack on the costs of shop time and refresh time. And by cutting the time to the frontline in half or even a third, you can do twice as many deals.

The best online dealer-only car auction

DealersLink is unique among online dealer marketplaces. The deal process is more secure. The vehicles are front-line ready. So the buy price is the true acquisition price, and the vehicles can be marketed and sold much faster.

There’s much more to DealersLink Marketplace than this. Here are a few of the additional advantages you get:

  • No auction or transaction fees – ever
  • Tie into nearly 300 live auctions listed back of book
  • First-access to Hertz and Dollar Thrify rental fleet inventory
  • Access a vast consumer market selling their vehicles
  • Easily quote and track shipping, integrated into DealersLink

Learn all the benefits of sourcing your inventory with DealersLink marketplace, see the Marketplace Buy page.

Ready to see the nation’s largest dealer-only online auto marketplace for yourself?

Sign up for a fast-n-easy live demo today.

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