It goes without saying that in order for your bhph dealership to attract customers in your market, your dealership must house inventory choices that are appealing to even the most discerning subprime buyer. In order to remain a viable option against the competition, many dealers are utilizing online vehicle auctions as their marketplace. Internet marketplaces have been outperforming and even replacing brick-and-mortar companies in many areas of commerce, and the auto industry is certainly not immune. In this business, it pays to stay up-to-date and that include the way you stock your inventory.
This is especially true where online vehicle auctions are concerned because the potential benefits offered are enormous. The ability to buy inventory without visiting a physical auction house is making it easier than ever for dealers to find the vehicles they need. More than that, it allows for fast turnover, which is of vital importance in the auto industry. By putting a wide selection of inventory at the fingertips of dealers both large and small, online vehicle auctions ensure that those whose options were once limited can now have a better chance of viewing and acquiring better stock, which in turn helps to even the proverbial playing field.
It’s no wonder, then, that online vehicle auctions are growing. Internet wholesale auto sales have increased from 900,000 to 1.4 million since 2016 while physical auctions, while still prominent, have been steadily declining. In fact, some online vehicle auction companies have become giants in the industry. For example, ACV Auctions is one of the biggest players on the scene. As their name suggests, the company specializes in online vehicle auctions, but along with wholesale vehicles they also provide a platform for dealer-to-dealer sales as well – and they’re very successful at both. ACV Auctions has been expanding nationally at an explosive rate. On average, they sell a stunning 10,000 wholesale vehicles each month and are continuing to grow in over 140 territories.
ACV’s CEO George Chamoun credits the company’s reliability and trust-worthiness for their growth.
“Thousands of dealers around the country are turning to ACV Auctions as the trusted, transparent digital marketplace to buy and sell their wholesale inventory,” he explained.
That is certainly not the only company experiencing such growth in the online marketplace. Founded only two years ago, BackLotCars has practically exploded onto the online vehicle auction scene this year. At the beginning of 2019, they had 7,500 users, and had received $8 million from venture capitalists. Earning $100 million in one year, BackLotCars has grown so quickly that it has attracted even more funding. As of April of this year BackLotCars had raked in a stunning $25 million in their Series B funding. That is beyond phenomenal for a company that didn’t exist three years ago and gives some indication of just how much online vehicle auctions are expected to grow.
By offering a more convenient way to buy wholesale cars, and in the process making it easier for smaller dealerships to compete for inventory, online vehicle auctions are changing the way auto auctioning works. Companies like ACV Auctions and BackLotCars are expected to keep growing exponentially over the next several years and BHPH dealerships vying to maintain competitive inventory in their market should consider using online vehicle auction platforms as a more convenient and transparent option. After all, this is the way of the future, and BHPH dealerships don’t want to be left behind.