The Benefit of a Vehicle Buying Center and What You Need to Get Started

The Benefit of a Vehicle Buying Center and What You Need to Get Started

An in-house vehicle buying center can be a game-changer for your inventory sourcing strategy.

Dealership profits are currently at an all-time high. Unfortunately, inventory levels haven’t been able to keep pace. Widespread vehicle shortages are making it tough to take full advantage of consumer demand. And going broke acquiring expensive inventory isn’t the solution.  

So, how can dealers keep up with demand without sacrificing profits? 

Simple. By sourcing smarter (and more profitably) with an in-house vehicle buying center (VBC). 

BENEFITS OF A VEHICLE BUYING CENTER 

A VBC is a department of your dealership built for one purpose: private-party vehicle acquisition. In many ways, a VinCue VBC works similarly to the business model popularized by CarMax. And reverse-engineering this model does more than just open up another sourcing channel. It also lets you acquire more profitable inventory for your dealership.  

Here’s how. 

1. YOU CONTROL THE PRICE YOU PAY FOR EACH VEHICLE 

Prices increase with every hand that flies up at auction. But when you buy directly from the public, you control the price. This lets you avoid problem vehicles and negotiate deals that are fair to both parties.   

2. IT ELIMINATES EXTRA AUCTION COSTS 

Auction expenses, like transportation and acquisition costs, end up eating into your gross margin. Sourcing through your VBC eliminates the middleman and helps you hold onto front-end gross with each purchase. 

3. YOU CAN BUY THE VEHICLES YOU WANT INSTEAD OF SETTLING FOR WHAT’S AVAILABLE AT AUCTION 

Your selection of new inventory at auction is limited to whatever’s available — even if those vehicles aren’t right for your market. Your VinCue VBC empowers you to exclusively stock the profitable inventory you want on the lot. 

HOW TO BUILD YOUR OWN VBC  

STEP 1: Start with an achievable goal.  

Like any new venture, it’s best to start small and grow from there. For example, start with a commitment to buy at least 20 vehicles per month through your VBC. As your business grows, so should your monthly goal. 

Even the smallest independents can eventually buy 100+ vehicles per month from the public. Keep at it! 

STEP 2: Update your website. 

Your dealership website is your first impression with most buyers. The same goes for first-time sellers. Dedicate a section of your website specifically to your VBC that’s easy for visitors to find. Buying a separate domain (e.g., “selltoabcmotors.com”) can also help with marketing your VBC. 

STEP 3: Hire full-time VBC agents. 

Finding the right cars and buying them at the right prices takes time. That’s why you’ll want to staff your VBC with full-time agents. Look for individuals who excel at communication and customer service. They’re the key to working out the best deal possible with each seller. 

STEP 4: Invest in advertising and lead generation. 

Traditional marketing channels are one way to reach sellers. However, we recommend using digital marketing tools to target the right audience. Software partners who assist with lead generation are also critical to the success of your VBC. These partners can bring in sellers without you ever having to lift a finger.  

USE A VEHICLE BUYING CENTER TO BOOST YOUR DEALERSHIP’S TURN AND GROSS 

An in-house vehicle buying center can be a game-changer for your inventory sourcing strategy. It’s the key to boosting inventory turn and front-end gross through more profitable sourcing. And the best part: Any dealership can build its own VBC. It just takes the right tools. 

We recommend using an all-in-one dealership platform to help get your VBC off the ground. Look for a tool that includes precision advertising, customizable website templates and market-pricing solutions to help optimize your VBC. For a detailed process, please visit www.dealercue.com

Happy buying!   

You May Also Like

Why Dealers Switch From DOWCs to ARCs

By now, most dealers are familiar with the “dealer-owned warranty company” or “DOWC” concept and, more likely than not, have reviewed a presentation touting the benefits of this structure. Providers promoting this structure often highlight certain benefits that are very enticing and alluring to dealers that are currently in reinsurance. However, providers regularly fail to

By now, most dealers are familiar with the “dealer-owned warranty company” or “DOWC” concept and, more likely than not, have reviewed a presentation touting the benefits of this structure.

Providers promoting this structure often highlight certain benefits that are very enticing and alluring to dealers that are currently in reinsurance. However, providers regularly fail to provide a comprehensive view of the structure, leading many dealers who elect to proceed with a DOWC to second-guess their decision shortly after making the move.

EV Trends from Black Book

Most OEMs have plans for EVs in the pipeline. It is vital to get your service, parts and sales staff trained and prepare your facilities to accommodate this inventory-type change.

Dry Ice Blasting – Save Time & Boost Car Values

Reconditioning cars to prepare them for the used car market is no easy task. The labor hours, harsh chemicals, awkward angles, and use of sharp blades, wire brushes, and rags really add up. What if there was a way to recondition a car – inside and out – in a fraction of the time without

Tracking a Weekly $10K Gain

Keeping track of your high-value, moving assets can be tedious, haphazard — and high risk to your efficiency and competitiveness. It need not be that way.

Safety Recalls: Boost Revenue, Now!

Learn how recall verification and monitoring data science from AutoAp integrated with reconditioning identifies and catches all open recalls and often reports them before OEMs notify their dealers

Other Posts

Executive Spotlight with Danny Zaslavsky of VinCue

Tune in as Danny and Brian discuss sourcing inventory, how dealers can capture more market share and more.

CarNow, VINCUE Announce Strategic Partnership To Revolutionize Vehicle Buying Experience

CarNow and VINCUE announced a new, long-term partnership that will significantly impact the automotive industry.

Breaking Down Cybercrime in Automotive

Your dealership is a treasure trove of data. Think about it… names, phone numbers, addresses, work details, salary, and social security numbers for hundreds, if not thousands, of consumers. Financial details about their vehicle purchases. Credit card information from service. The list goes on and on. All of this data makes dealerships a prime target

Understanding Automotive Connected Consumers

Discover how auto advertisers can build effective marketing strategies for reaching connected consumers.