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Interview from WhyBuyUsedCar.com [WBUC]
Everyone wants the best price on a used car. Up to 80% of used car shoppers are looking for their next deal online; shoppers visit over 10 different car sites before even visiting a dealership. Knowing this, a consumer may ask why car dealers don't try harder to price their inventory more competitively. A new company is shaking up the used car market with the first and only solution to an old problem.
Only three years old, vAuto is making a strong impact on used car dealers. Their revolutionary system helps dealers price, appraise and stock pre-owned vehicles. The winners? Dealers AND consumers.
I spoke with vAuto's Chairman and Founder recently, Dale Pollak. His enthusiasm, knowledge and passion for changing the used car industry rings loud and clear.
WBUC: What was your driving motivation in creating vAuto's used car pricing solution?
Dale Pollak: I quickly saw the huge disconnect between the way traditional dealers price their vehicles and how consumers compare car prices on the Internet. Most dealers mark up their acquisition costs by $3,000 - $5,000 and place the vehicle on the Internet at that price. Consumers, on the other hand, can (and do) easily sort and search for the best values in the market. This renders the majority of the used cars on the Internet as uncompetitive from the customer's perspective. I saw this as a really big problem and one that needed to be solved...so I created the vAuto solution.
WBUC: How have dealers responded to vAuto - what's the feedback so far?
DP: Very positive right from the start; our sales have soared. The next phase will be exciting as dealers begin to see their own sales pick up as a result of working with us.
WBUC: What was the buzz like at NADA this year in San Fran?
DP: Our traffic at NADA was over the top; we had standing room only for nearly the entire show. I think dealers have figured out we have something really special to offer.
WBUC: What opportunities do you feel dealers are missing?
DP: Although dealers are eager to acquire our tools, they still have significant cultural challenges in using them correctly. Specifically, most dealers want to price their vehicles to make the biggest margin possible rather than to price them to market. It takes a lot of discipline for a dealer to price vehicles to what the market will bear rather than to a higher, pre-determined profit margin. Progressive operations, such as Auction Direct USA serve as important models of how to successfully serve the used car market.
WBUC: Notice any trends developing within the industry?
DP: The used car market has become efficient and transparent. In my opinion, dealers must price used vehicles according to the market if they expect to see buyers show up at their door. As more dealers catch on, there will be less negotiation and in many cases, none at all. I therefore believe that whether dealers recognize it or not, negotiation-free selling is in their future.
Thanks for the comments Dale, keep up the great work!
Dealers - If you haven't seen it yet, check out their used car pricing solution.
Consumers - Keep searching for the best used car prices. If Dale has anything to do with it, it'll probably be easier in the near future.