Pub. 62 2021-2022 Issue 1

20 social distancing, cleaning vehicles after inspections, and distancing, all without human contact. Dealership buyers and used car managers can buy anytime from anywhere, including their homes. When a car sells, ACV handles all the titling and payment. ACV Transportation can also transfer and deliver the car. A couple of states, like Pennsylvania, shut down dealerships completely during COVID. Most did not. However, dealers suddenly had their dollars tied up in depreciating cars even though there were plenty of buyers. Where possible, we were asked to go to closed dealerships and list cars to free up cash as dealers adjusted their inventories for lower demand during COVID. We managed COVID impacts on our business and our dealer customers by meeting daily internally about state regulations. Our association partnerships helped ACV stay current in all of the States with their requirements. It was a very fluid process. We met about 8 a.m. or 9 a.m., updated the spreadsheet, and passed it out to the field daily. Is ACV able to make contactless deliveries? Absolutely. We do it every day. COVID allowed us to fine-tune the process. What are the main benefits of the pricing structure? Is it unusual to offer such a transparent system to buyers and sellers? It really is unusual. In my lifetime, there was never any transparency in the fees, and fees changed rapidly. At ACV, we post the tiered fees on the website. The maximum fee to buy a car is $350, plus the transportation cost from A to B. How does ACV make life easier for dealers? The website says it allows dealers to focus on their retail business. How does that work? The biggest frustration with wholesale is resolving problems, but we are like consultants who extend what the dealership can do for their customers. ACV is an extension of our dealer partner. When a problem arises, and they do at times, we resolve 99% of the problems quickly, the right way, even with COVID. When companies work with us, the director or manager can take the burden of wholesale and push it over to us. Then they can go back to managing deals and people. Time is money, and ACV frees up managers’ time. Dealers currently have fewer people working for them, but those people are doing more. Technology is fabulous, and it builds great processes, but you still need people. If you are our customer, you don’t have to worry about transportation costs or representing your cars on an auction block. You can relaunch a car after adjusting the price, set filters to look at specific vehicles, and automatically put in a bid while doing other things. Our market covers four time zones. If it is 9 p.m. on the East Coast, it’s only 6 p.m. on the West Coast ACV’s success is very simple. It depends on our reputation. We had to prove our process would work at first because nobody knew what the company was about, but our reputation now is second to none. That’s part of the reason I went to work with the ACV Team. 1. We have a tremendous wealth of auto knowledge. 2. We offer great products. 3. We strive to give our dealer partners a fabulous experience. 4. If there is a misstep, ACV runs to fix mistakes instead of running away from them. What makes ACV revolutionary? A large part of it is technology. The system is more efficient and less expensive than physically sending cars to an auction, partly because you don’t have to pay transportation costs to get a car there or bring it back if it doesn’t sell. Also, physical auctions can be shut down by COVID. Technology coupled with the auction volume expands the dealer market. More views mean making more money and making it faster, which improves cash flow. We have a feature called Audio Motor Profile (AMP). Some dealers know the sound of an engine better than inspectors do, and they can diagnose a problem with the belt or engine knock just by listening. AMP plays the sound of an engine at 1,500 and 3,000 RPMs from a cold start. We allow every bidder to use it as it is part of every vehicle condition report. It is in the ACV app. ACV inspectors take more than 40 photos of each vehicle inspected, including the dipstick and oil cap. Each inspection has an OBD II scan showing open codes. Vehicles also receive a paint meter reading and tire depth measurement, all adding accuracy and transparency. Buyers enjoy the in-depth third- party inspections, which builds a loyal buyer base. Our patented Virtual Lift allows a bidder or buyer to see a car’s  STU ZALUD — CONTINUED FROM PAGE 19 ACV’s digital auction lists vehicles green, yellowor red. Greenvehiclesareeligible for arbitration. For an extra$75, you can purchase GoGreen, which we believe is the first sell-side insurance offering.