This rebroadcast of the 2018 NADA presention of a Cox Automotive study shows why Inventory Acquisition Services for Dealerships is one of the hottest trends being implemented at successful used car dealerships. As one dealer put it, "When it comes to trying to find inventory I'd rather have a commercial fishing long-line than a cane pole. The more eyes I have on auction inventory the better results I am going to have." Zulia Lopez - One Stop Autos
1. *Source: 2018 NADA Show presentation by Susie Heins VP, Enterprise Dealer Partnerships| Cox Automotive
Game Changers Driving Wholesale
Efficiency & Inventory Velocity
Presented by
Easy Auto Buying
The information we are about to share was compiled from surveys and
studies conducted by cox automotive and presented at the 2018 NADA show.
2. Did you know that more than 50% of used car dealerships do not
subscribe to the full suite of vAuto products or similar services?
Here is a few fun facts to start us off.
3. What is more surprising is that according to a survey conducted amongst
vAuto Performance Managers company wide, 90% of all users are not
deriving the maximum benefit from their tools. Less than 75% subscribe
to all service platforms or know how to get the most out of each tool.
4. On-line processes reduce cost, increase efficiencies and provide more
transparency for dealership owners.
Traditional Wholesale Buying and Selling is inefficient.
5. REVIEW MACRO
TRENDS
we are seeing and
learn how they
impact dealers.
SHOW HOW THE
NEAR FUTURE
WILL LOOK
for efficient used
car inventory
management
leveraging data .
SHARE WHAT
GAME CHANGING
DEALERS ARE
DOING TODAY TO
propel used vehicle
efficiencies and
speed to market to
drive profits.
EXPLAIN HOW
EZ AUTO BUYING
services can help
you implement and
capitalize on these
powerful trends.
1 2 3 4
12. A Cox dealer sentiment survey indicates On-line
Marketing Conditions, Getting the right inventory
& Strong Competition are dealers biggest concerns
13.
14. Dale Pollack - Founder of vAuto
and author of industry best selling books Velocity, Velocity Overdrive and Like I See it.
“In the used car segment were mega dealers
are attempting to control the market through
volume buying, High Volume Professional
Acquisition companies that know how to play
that game will thrive by providing smaller
dealers the ability to compete and allow their
used car managers to focus their time on
desking more deals and closing more sales.”
17. The not so distant future will look different
1
Alert Dealer
2
Click to Buy/Bid
3
Upload to Site
18.
19. 1. Set volume & ROI goals
• Used to New Ratio: From 1:1 to 1.25:1
• Improve Turn: From 8 to 12
• Gross Return on Inventory: From 100 to 120
• Cycle Time (Recon & Transportation) : 12 days to 7
• Aged Inventory (under 30 days): From 70% to 55%
2. Have a strategy with goals for each of the following..
• Acquisition
• Pricing
• Reconditioning
• Merchandising
Game Changers: Used Inventory
30. WHAT IS EZ AUTO BUYING
EZA?
EZA is the evolution of the same
data driven buying platform used
at 10 out of 10 of the nations top
volume used car dealers.
31. How do you get from here to there ->
Partner with us and become the used car leader in your market.
EZ AUTO BUYING,
32. How do you get from here to there ->
BASIC ON-BORDING PROCESS AND SUCCESS FORMULA
Assess, Plan, Integrate, Execute, Review, Revise & Repeat
RECON WHOLESALE LIQUIDATION LOT
200 DAYS+ AGING
50 DAYS AGING
30 DAYS AGING 45 DAYS AGING 45 DAYS
10 DAYS AGING 15 DAYS AGING 20 DAYS AGING
5 DAYS AGING
5 DAYS AGING EQUITY SHEILD
AWAITING
TRANSPORT
HOW DOES IT WORK?
• First step is to assess the health of your
current inventory and create a custom buy
plan while formulating an exit strategy for
any less than desirable inventory.
• Integrate to your existing DMS to
implement live market pricing to drive VDP
views which in turn will increase sales.
• We find you the best deals on in demand
vehicles and buy them right so you can list
then 90% to 95% price to market with an
5% to 10% margin built in front end gross.
• Begin digital marketing with custom photos
within 3 days of acquisition.
• Focus on reducing recon cycle times to
under 1 week!
33. How do you get from here to there ->
CORE REPORT – FAST TURNING INVENTORY
34. How do you get from here to there ->
CORE REPORT – HIGH GROSSING INVENTORY
35. How do you get from here to there ->
CUSTOMIZED BUYING PLAN TO GUARANTEE MAXIMUM DEAL TURN AND PROFITS
Target acquisition cost such that can be priced 95% to market with a 5% front-end margin built in!
36. Are you familiar with Live
Market Pricing?
For us technology is common sense.
We use proprietary software that
allows us to search thousands of
automotive websites every hour to
determine the lowest 10% of prices
in the market place for cars like
ours, same equipment, same
mileage and same condition.
We then dynamically re-price your
cars on every website as often as
daily in some cases so every pre
owned car is priced at the lowest
10% in the market place period!
Your BDC department will love this
part of our program!
EZ AUTO BUYING,
EZA
Buy Price
$11,429
37. • Old Age Liquidation Program and your inventory never leaves the
lot to maximize retail opportunities.
• Receive hundreds of bids and even sell with out auction fees
through our dealer-to-dealer network.
• Know exactly what it will bring at auction because exit plan is in
effect from day 30 to day 60.
• Get thousands of bids a week and determine which one you
take, with lower fees and free transportation.
• Never have to worry about arbitration and avoid no sell fees.
• Our average wholesale transaction is 5% above MMR.
EZ AUTO BUYING,
Run a wholesale business inside of your retail business
Please note that this service is offered with and exclusive 20 mile radius and a 50 car per month minimum does apply. For more information call 833-392-8867
38. EZ Equity Shield
60 DAYS / 500 MILES
• EZ Equity Shield Insures actual original auction price up to 60 days for $469 fee
• There will be a monthly fee of $595.00 to monitor website pricing, reconditioning, and pictures with Equity Shield.
• Pricing guidelines must be strictly adhered to for EZ Equity Shield to remain in effect.
• EZ Equity Shield does not cover, transportation, or reconditioning, detail, packs, etc. EZ Equity shield will cover acquisition and auction fees.
• Vehicle must be reconditioned, detailed, pictured, and online within 5 business days of delivery to dealership. Vehicle must have no major repairs or body shop is needed to be on
the EZ Equity Shield program.
• Vehicles will exclude Salvage, Rebuilt, Flood, Previously Stolen, and Lemon-Law or Manufacturer’s Buy Back. (Previous Accident, Structural, or Airbag is at dealer discretion.)
Dealer will determine how aggressive they want us to buy, but certain cars may not qualify to EZ Equity Shield program. However, every car that qualifies must have it.
• EZ Auto Buying (E.Z.A.) Will arbitrate with auction for dealer. We are familiar with Manheim and NAAA Arbitration Policies. In most cases we will know the auction manager from
years of relationship building. We are professionals and know how to get things done.
• Must be competitively priced on line under 100% Adj % Market V-Auto and Specialty Items with be on an individual basis, using V-Auto and auto distance to be fair with both
parties.
• At 45 Days Dealer will lower price to 95% Adj % Market. If Dealer doesn’t lower price the EZ Equity Shield protection will be void.
• At 60 Days price will be lowered to auction original purchase price.
• After 65 Days Competitive Inventory Acquisitions , C.I.A. will live auction to the highest bidder on OVE, Manheim, Adesa, or EBay Motors will buy the vehicle. The difference
between the original auction purchase price and the auction sell price will be reimbursed to Dealer as stated in agreement if dealer elected Equity Shield.
39. COMPETITIVE INVENTORY ACQUISITIONS,
TO GET STARTED CALL US AT
833-EZ-AUTOS
that is
833-392-8867
or email: info@ezautobuying.com
CIA’s Proprietary Acquisition Platform boast some of the best buyers in the industry and integrates real time data from vAuto and all of the top on-line car markets and leverages the power of artificialintelligence to do in-depth analysis on every major auction site and identify the best vehicles to buy for your market.
