Maximizing Vehicle Acquisition: Insights from the Vehicle Acquisition Network and vAuto Partnership

Vehicle acquisition is an essential aspect of dealership operations, and in today's competitive landscape, innovative strategies are key to maintaining an edge. Vehicle Acquisition Network (VAN) has partnered with vAuto to offer dealers a smarter way to source vehicles directly from private sellers. Through this partnership, dealerships can optimize their acquisition efforts and better align their inventory with market demand.

Tom Gregg, founder and CEO of VAN, provides valuable insights into how this partnership can transform acquisition processes. Here are actionable strategies that can improve acquisition outcomes and profitability.

The Value of Comprehensive Classified Listings

One of the major benefits of the vAuto partnership is access to a broad set of classified listings from private sellers. This data provides an expanded pool of potential vehicles for acquisition, sourced from both major and lesser-known platforms. By leveraging these listings, dealers gain visibility into a wider range of vehicle types, allowing for more targeted acquisitions based on local market needs.

The intelligence gleaned from these listings helps dealerships focus on vehicles that can generate the best return on investment. Whether it's identifying high-demand models or sourcing hard-to-find inventory, these insights are crucial in creating a profitable acquisition strategy.

Prioritizing Stocking Grade and Strategic Action

Gregg emphasizes the importance of understanding the stocking grade and strategic action within VAN’s platform. The stocking grade is based on seven key attributes that help dealers categorize vehicles by type and price range. For example, dealers can easily determine if their inventory needs more small SUVs or mid-range sedans by analyzing the data, often broken down into $5,000 increments.

These insights lead directly into actionable steps. By understanding which vehicles have the most potential for profitability, dealers can refine their acquisition processes and prioritize sourcing efforts based on real-time demand.

Why Dealerships Need a Dedicated Acquisition CRM

Vehicle acquisition is fundamentally different from sales, yet many dealerships continue to blend these two operations in a traditional sales CRM. Gregg points out that this often leads to inefficiencies, particularly when private sellers are mistakenly contacted about purchasing a vehicle instead of selling one. VAN’s acquisition CRM is designed specifically to handle the complexities of vehicle buying, ensuring a clearer and more focused workflow.

“The sales CRM is really not adequately built to help dealers buy, and in my opinion, it’s a negative connotation for a very positive outcome.”

Moreover, the acquisition process requires a unique approach. While a typical salesperson may close a high percentage of deals, acquisition specialists might succeed in purchasing only about 5% of the vehicles they pursue. Understanding this disparity helps dealerships set more realistic expectations and develop processes better suited to the acquisition side of the business.

Starting Small and Scaling Up: The Case of Mazda of Orange

Gregg shares an example from Mazda of Orange in Southern California. Initially, they used VAN’s standard account to track basic acquisition activities. While useful, this setup lacked deeper insights into the performance of their acquisition team. 

By upgrading to a more advanced tier, they gained access to metrics such as phone call volumes, message counts, and response times. These leading indicators provided a clearer picture of their team’s efforts and allowed the dealership to make data-driven adjustments to their acquisition strategy. Within just a few months, Mazda of Orange tripled its vehicle acquisition results.

Leveraging the Global Search Function for Maximum Flexibility

Another standout feature of VAN’s platform is the global search function, which allows dealers to customize their vehicle searches based on geography and inventory type. The default 50-mile search radius is expandable with the Accelerate tier, giving dealers access to a much larger pool of vehicles. This flexibility enables dealerships to pivot their strategies quickly, adapting to changes in market demand or specific inventory shortages.

The ability to exclude certain zip codes or hone in on particular vehicle types adds another layer of control, making it easier for dealerships to acquire the right vehicles at the right time.

The Importance of Process Documentation

Having a well-documented acquisition process is crucial for consistent success. Gregg highlights that dealerships with clearly defined acquisition strategies often see better results. Not only does this documentation align teams toward common goals, but it also helps onboard new staff more efficiently.

Dealers who approach acquisition as an opportunity to build relationships with sellers—rather than simply a transaction—are more likely to succeed. By cultivating trust and offering fair market prices, dealerships can create long-term relationships with private sellers that lead to future business.

Enhancing Appraisals and Building Trust with Sellers

VAN’s integration with vAuto simplifies the appraisal process by enabling seamless data sharing. Appraisal information is updated in real-time, reducing the risk of miscommunication and building trust with sellers. In addition, Gregg advises dealers to consider offering more competitive prices to private sellers, which can differentiate them from other buyers and help build a reputation for fairness.

"Dealers should focus on cars with a larger gap between the asking price and the acquired price."

Dealers who focus on providing competitive pricing—rather than low-balling private sellers—often find themselves with a stronger acquisition pipeline and more satisfied customers.

Conclusion

The collaboration between Vehicle Acquisition Network and vAuto offers a game-changing solution for vehicle acquisition from private sellers. With comprehensive classified listings, actionable insights, a dedicated acquisition CRM, and powerful search tools, dealerships can streamline their processes and improve their bottom line.

Tom Gregg’s advice underscores the importance of aligning acquisition efforts with strategic goals. Whether it’s through refining stocking strategies, improving CRM functionality, or documenting processes for success, the tools and insights available through VAN can help dealerships of all sizes thrive in the competitive world of vehicle acquisition. For dealerships looking to enhance their inventory management and acquisition strategies, leveraging VAN’s platform is a clear path to success.

Ready to optimize your dealership's buying and selling strategies? Contact VEHICLE ACQUISITION NETWORK for expert guidance and to achieve better outcomes.