he continuing global microchip shortage combined with last year's pandemic-related manufacturing slowdown has brought the global automotive manufacturing industry to its knees. With numerous production facilities still dealing with layoffs and shutdowns, the number of new cars being manufactured has been significantly reduced.
Dealerships of all sizes find themselves struggling to maintain enough inventory to meet their increasing demands. Lower inventory at the new car level means a shortage of the trade-ins traditionally used to restock an estimated 65 percent of used car inventory forcing the previously-owned sales side to pursue alternative used vehicle sources.
Low Availability From Traditional Used Vehicle Sources
Traditional sources of used vehicles include trade-ins and newer model used cars bought at auction. However, the new car shortage has also affected the rental car industry now struggling to maintain inventory levels to meet their own rising demands.
Unable to procure the huge fleets of new cars usually purchased each year, rental car giants such as Enterprise and Hertz are snapping up the low-mileage late-model used cars at auctions the dealerships have long relied on for inventory. Further competition from companies such as CarMax and Carvana leaves the more traditional used car dealerships struggling to maintain enough inventory to meet their rising consumer demand.
The Trouble With Tradition
Methods of traditional vehicle acquisition can be time-consuming, frustrating, and not all that profitable. Preparation for an auction takes hours of prep time and research resulting in bids being raised to obscene levels and you walking away with far less inventory than you realistically need.
When you loOKat these high prices and add in the fees charged at auction, there is little room for profits. Trade-ins on new and used cars have traditionally offered a steady stream of inventory, but the current climate has diminished these numbers to unsustainable levels.
Accessing an Existing Resource
Battling the number of obstacles encountered from traditionally used vehicle sources, the previously-owned car sales industry can finally easily access the untapped goldmine of vehicles available through private sellers. While finding qualified vehicles on the private market could be a daunting task, there is a new system available that is helping dealerships infuse their inventory with the vehicles they need.
VETTX has developed a used car acquisition system that allows used car dealerships to find and acquire vehicles from private parties to meet the demands of their customers while simultaneously increasing their profits.
What the VETTX System Does
The VETTX system uses software that searches existing private seller marketplaces such as Craigslist and the FaceboOKMarketplace for those vehicles that top your inventory wish list. Working within the parameters set by your wholesale and retail pricing, the software identifies potential vehicles that will match your needs.
How the VETTX System Helps Increase Profits
What we propose at VETTX is to allow you to stop relying so much on the auctions and trades and put in efforts to build a sustainable private party vehicle acquisition process, reinventing car dealer software that will serve you even in the harshest of conditions. Contact us today to schedule a demonstration and get ready to bring in the inventory you need.