Pub. 19 2020-2021 Issue 3

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E 3 | 2 0 2 0 18 new jersey auto retailer REMEMBER WHEN? BY MIKE WATERMAN Remember when? That is a phrase many of you reading this can identify with. Remember when you would tape six sheets of legal paper together to make a full-page newspaper ad? You would spend hours with your ruler, pencil and current list of inventory to build out the ad for the upcom- ing run on Sunday. Remember when you would appraise a car with your NADA, Galves, Kelley or Black Book in your back pocket? I’ll paint the picture — you’re sitting at your desk, flipping through the guidebook figuring mileage adds or deductions and equipment adds. All the while, you’re asking yourself the same questions — Do I need this car? What could I sell it for? I know the Volvo store down the street has a couple — what does he have those priced at? Then came the internet and websites, and dealers were now able to reach more “ups” more often and MUCH more efficiently. Then came inventory management systems. We could enter the VIN and get a whole slew of information on the vehicle in sec- onds. Dealers got exponentially better at what they stock, what they pay, how to price and how to compare markets locally, regionally and nationally. Remember when you would pick up the phone and call several of your friends to “bank” a trade because you needed more mon- ey to put the deal together? Remember when you would drive three hours at 4 a.m. to get to the auction right when the gates opened so you could crawl around 80-90 cars, make notes, look up values and maybe buy 10? Well, those days are finally over. The “Digital” evolution in wholesale is here! What has changed, you ask? In today’s digital marketplace, many new tools completely changed how you can transact as a business, bringing more trust, transparency and efficiency to the buying and selling process. I will start with the most important part of what we do: buy cars for the front line. This is where most mistakes were made before digitization. First, there is the right car at the wrong price. Those you can survive because, although your average gross will suffer a bit, the car will eventually sell. The second is the wrong car. Why? The wrong car usually comes into stock for two reasons. Most often, we put too much money in it to make a deal and have no wholesale option unless we want to lose money. Plus, our buyers claim it was a “steal” at the auction. Neither are good for your retail front line. Next, let’s address vehicle trades. Did you know there are hun- dreds if not thousands of dealers today who have raised their win rates on trades by double digits — and assumed ZERO risk? How is that possible? The new marketplace is thriving online in whole- sale. If you want a real offer with a legitimate check attached to trade in, launch the car to thousands of potential buyers and 20