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Luxury Car Dealers are Sourcing Vehicles Using the Internet

Finding the right pre-owned vehicles is becoming more difficult for luxury car dealers. "I buy cars from all over the country and especially on the high-line side, you have a little more room and desirability to purchase cars that might be out of the area and out of the state," said Matt Tompkins, Pre-Owned Director for Circle Porsche & Audi in Long Beach, CA. "For $100,000-plus cars, you have to make the right decisions."

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Tompkins’ sentiment is echoed in the 2011 Used Car Market Report (UCMR) from Manheim Consulting. The report states dealerships are facing a significant decline in available vehicles. According to the report, the volume of wholesale auction vehicles decreased for the third consecutive year.

The decline in wholesale units has led dealers to increasingly rely on online auto auctions to find needed inventory. Advancements in technology allow dealers to target auto auctions across the U.S. to find cars that meet specific customer needs quickly and efficiently. Dealerships like Circle Porsche & Audi are going online more often to find high-end vehicles and then using reliable auto transport companies to receive their cars safely and efficiently.

Pre-owned sales figures released by Manheim Consulting reveal that dealerships are adapting well to the changing market. From February 2010 to 2011, pre-owned sales have increased nine percent and prices have improved around five percent. In the higher end market, Manheim states that certified pre-owned sales were up double digits (13 percent) in January.

According to the 2010 NIADA used car industry report and CNW Marketing Research, nearly 600,000 pre-owned luxury cars were sold in 2009, representing 1.7 percent of the market share. As the trend toward online shopping increases, a greater portion of those cars are also being purchased online. CNW Marketing Research reported that of the 42.5 million vehicles listed, 7.5 million cars sold online in 2009. More than 10 million used car searches are conducted on Yahoo! each month, and nearly 85 percent of all new and used car purchasers shop online first before even visiting a dealership.

To be competitive, luxury auto dealers in need of vehicles are finding inventory beyond their usual trading zone. As more dealerships purchase pre-owned cars from online auctions, auto transport has earned an increasingly important role in the sales process. After locating the right inventory online, dealers need to be able to visit an auto transport company’s website and quickly obtain a price quote and estimated delivery time. With the right auto transport options, dealers can control their transportation costs to keep profit margins high.

Auto transport must be safe and dependable to ensure vehicles arrive in pristine condition. Just as virtual auto auction technology has improved, auto transport companies have improved their online shipping services. With a few clicks of the mouse or using a smartphone app, dealers can get instant price quotes, place an order, or track an incoming delivery.

If remaining competitive in the luxury pre-owned vehicle market is important to you, shop online auto auctions to find the right inventory and work with a trusted auto transport company to deliver your premium cars safely and efficently.

ShipCarsNow provides the used car industry with affordable auto shipping services and is the preferred auto transport company for luxury car dealers nationwide. ShipCarsNow delivers vehicles in the U.S. and around the world through a multimodal auto transport network that includes truck, enclosed rail transport, driveaway shuttles, and ocean-going vessels. If you’re a luxury car dealer looking for a reliable auto transport company, let ShipCarsNow help arrange your auto shipping. Register now to get started.





UPCOMING EVENTS

  • 2011 Certified Pre-Owened Dealer Conference (CPO)
    November 14th - 15th, 2011
    Las Vegas, NV


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    November 16th - 18th, 2011
    Las Vegas, NV


  • 11th Digital Dealer Conference & Exposition
    October 5-7, 2011
    Las Vegas, NV