Sourcing, Financing and Marketing Inventory Using Digital Channels
Learning Objectives Create unlimited access to quality used inventory Buy better in-demand inventory that sells faster in your local market Streamline inventory solutions with proper floor planning Capitalize on online shoppers and market your inventory for higher conversion
Current State of
Dealership Sales and Profitability
Wholesale Market Continuing to Grow 8.0 7.5
MILLIONS OF UNITS
7.0 6.5 6.0 5.5 5.0 4.5 4.0 3.5 3.0 1996
Source: Manheim Consulting
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
4
Infuse Speed and Efficiency in the Wholesale and Retail Vehicle Life Cycle
5
The Wholesale Process Hasn’t Changed WHOLESALE OPERATIONS (DEALER)
INVENTORY IDENTIFICATION ACQUISITION FLOOR PLANNING INSPECTION DETAIL & RECON MERCHANDISING TRANSPORTATION/LOGISTICS INVENTORY MANAGEMENT
10+ DAYS TO MARKET INVENTORY TURN
6 – 8x PER YEAR
6
ONLY
are satisfied with your current wholesale process
Source: Manheim Vehicle Solutions Study
7
Improve Your Process, Become More Profitable WHOLESALE OPERATIONS (DEALER)
INVENTORY IDENTIFICATION ACQUISITION FLOOR PLANNING INSPECTION DETAIL & RECON MERCHANDISING TRANSPORTATION/LOGISTICS INVENTORY MANAGEMENT 8
Inventory Identification and Acquisition
Use Stocking Tools to Identify In-demand Vehicles
10
Stocking Tools Allow You To:
1. Know exactly what to buy 2. Know where to buy 3. Buy at the right price 4. Do it all faster
11
Know What to Buy Gain a Higher Level of Sourcing Efficiency and Proficiency
12
Know Where to Buy Auction-neutral system Stream wholesale vehicles that fit your strategy
13
Know What to Pay Auction bid guidance on every vehicle
14
Speaking of
Faster … 15
Use Online and Alternate Channels to Buy
16
1/3
Only of dealerships attend a simulcast auction every month. 17
Online Auctions Live Extensions of the Auction — Bid & Buy like in-person
18
Online Wholesale Marketplace
24/7 Access to Inventory
19
Mobile: The Ultimate Convenience
Buy From Anywhere
20
Condition Reports and Purchase Protection Improve Buyer Confidence
21
Floor Planning
The Opportunity Maximum Cash Flow Pay-off Trade-ins Finance From Multiple Buying Channels Finance Reconditioning, Transportation, etc. Dealer to Dealer
Consumer Purchases
23
What to Look For in a Partner
Are you able to get insights and monitor performance on your phone? Do they offer seamless integration? Does your floor plan provider understand your business model?
24
Marketing
Speed to Market Correlates to Inventory Turn = Profitability
Source: vAuto
Avg. # Days to Website w/Photos
Avg. # Days Autotrader w/Photos
Avg. # Days in Inventory
DEALER A
1
1
22
DEALER B
11
9
35 26
BHPH shoppers are online
%
USE THE INTERNET
Source: NABD/Autotrader. Buy Here Pay Here Study
27
BHPH shoppers own lots of
digital devices 28
29
30
VISITS ARE FROM MOBILE Source: Buy Here Pay Here Center Site Statistic
31
Stand-alone experience with mobile enablement
32
Leads Growth 8000 7000
Leads
6000 5000 4000 3000 2000 1000 0
May'14
Jun
Jul
Aug
Leads based on tracked phone calls and emails Source: Buy Here Pay Here Center Site Statistic
Sep
Oct
Nov
Dec
Jan'15
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan'16
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
33
% CONVERSION RATE
Source: Buy Here Pay Here Center Site Statistic
34
First Step in the Shopping Process
64%
59% 49%
40%
36%
Determine Dealership/Financing BHPH Purchaser
Source: NABD/Autotrader. Buy Here Pay Here Study
51%
Find a Vehicle I Am Interested In Credit Challenged
Traditional Purchaser
35
Deliver better online shopping experiences for consumers where they are shopping.
36
K e y Ta k e a w a y s Create unlimited access to quality used inventory Buy better in-demand inventory that sells faster in your local market Streamline inventory solutions with proper floor planning Capitalize on online shoppers and market your inventory for higher conversion
Majd G. Saboura Director of Wholesale Business Development
[email protected]
