We recognize how important it is to mitigate your auction risk exposure in the current market. There is nothing worse than paying transport and auction fees on a vehicle that rolls unsold through an empty auction lane. As an answer, we have released the zero-risk LiquidationLink. All units must be aggressively priced below NADA Trade. It is the final step in the Dealerslink® inventory modeling life cycle, a system designed to leverage transaction efficiency, eliminate auction fees, reduce auction risk exposure and maximize sales opportunities for all Members. Please take a moment to review our process and learn more about the new LiquidationLink.
Process Overview
1. Inactive/Retail Units – This is your retail strategy and no other dealers have access to your inventory. You have the ability to match your units to dealer Want Ads for a quick sale.
2. Active Units – If a unit remains unsold following your retail-only period, use a profit-sharing strategy. By activating a unit, you immediately increase the opportunity for receiving cash on a profitable sale. This is the standard unit on the Network and price levels typically split retail and wholesale ranges as both dealers are sharing in the transaction.
3. Buy-Bid Units – The Buy-Bid indicator is the third step in the process and notifies other dealers that you are more motivated to sell. This is a “break-even” strategy designed to avoid loss and quickly recover cash. Dealers are asking for a bid on a reconditioned, front-line ready unit, and the price levels are approaching auction rates to reflect these changes.
4. LiquidationLink™ – This is a zero-risk exit strategy and occurs when the unit has not been retailed, no other Member has delivered an active buyer, and the Buy-Bids received were not accepted. Units sold on LiquidationLink™ are only days away from being sent to auction or a wholesaler and the dealer is using his last resort to liquidate the unit without incurring transportation costs and sell fees. Pricing on LiquidationLink™ should match auction pricing, and must be under NADA Trade, as it is a fees avoidance measure rather than a profit center.
To learn more about Dealerslink®
CONTACT: Travis Wise at 877-859-7080 x302 travis.wise@Dealerslink.com
