Vehicle Acquisition Network connects private sellers and dealerships in their market to facilitate the sale of private party vehicles. It’s a concept that has been around for quite a while. What makes us unique is that we have developed a solution that makes the process scalable, efficient and effective.
Why Your Dealerships Wants (And Needs) to Connect With Private Party Sellers
As the pre-owned segment becomes increasingly competitive and fast turning inventory is more scarce than ever, connecting with private sellers offers a competitive edge. Working with private sellers provides dealerships the opportunity to diversify their pre-owned sourcing strategy to include an often-overlooked channel of inventory.
The value of an additional means to source inventory is evident. Auctions have become more competitive and trade ins are unpredictable. Even our service drives have limited potential as these vehicles are more difficult to acquire at a competitive price. Each of these channels contain inventory that may not be what we are looking for and focusing on these limited channels stifles the development of a fast turning, diversified pre-owned inventory.
Cultivating a process to acquire private seller vehicles in your market provides a steady stream of acquisitions from sellers that is diversified, more competitively priced and directly sourced due to the sellers being local and willing to bring the vehicles directly to the dealership.
Three Bonus Benefits to Private Seller Acquisition
Above and beyond the value of identifying an additional source of pre-owned inventory that is more competitively acquired there are additional reasons dealerships should be considering pursuing the private party vehicle market.
- Private seller vehicles are not only more competitive in terms of price, they are acquired at the dealership which reduces additional costs. Auction fees, transportation and associated holding costs are eliminated from the acquisition price with these vehicles.
- Developing a business case to seriously pursue the private seller market essentially creates a new profit center that, if run efficiently, becomes a self-sustaining department within the dealership. An investment that pays for itself in inventory and wholesale profit.
- Connecting with private sellers in market creates a new way to connect with consumers and develops relationships that a dealership may never have had the opportunity to build. The same consumers selling their vehicles today become buyers tomorrow.
In 2017, private party vehicles represented over 11 million of the 41 million pre-owned vehicles that were transacted on in the U.S. That number shows that over 25% of all pre-owned vehicles were sold by private parties. Dealerships that are capitalizing on the private seller market clearly have a competitive advantage over the dealerships that are not pursuing this market.
To learn more about how VAN can assist you in implementing a private seller acquisition strategy so that you can begin capitalizing on this lucrative market, contact us at 855-952-4949.
