Don’t think where you sell matters? The significance of a strategic location is becoming increasingly evident, yet again.

We have all been spoiled the last couple of years as remarketers and dealers with used cars to sell. The low supply and high demand led to record prices and relatively “easy” sales. Used vehicle prices have been moderating this year and now that the UAW strike is behind us, may pick up some more steam before year end.

I have spent a large majority of my career discussing with both internal teams and third party banks/credit unions about the importance of where you sell being a big factor. The collections mentality often is to sell the vehicle as quickly as possible with the least expenses. I have argued (with data to prove it) against this practice my whole career. When I had more say in it as a bank remarketer, we could prove time and time again that there was value in spending a bit more to move a vehicle or recondition it versus selling it at the closest sale where it landed. I can see both sides of it, but it often isn’t the right thing for the financial institution and/or ultimately, the debtor, to do so. Getting rid of the hot potato is one thing, but losing more or gaining less than you should is often downright foolish.

Sure, technology has leveled the playing field some in recent years, but as the example in my picture reflects, it still is no excuse for not doing your homework and knowing your assets and where they will be best received. Not every sale channel or location is created equal for every asset.

Case in point, a favorite car of mine, the 2012 Ford Mustang Boss 302 Laguna Seca shown here. Rare cars that were only produced for two model years and about 1500 examples. I watched this vehicle recently being offered on an up and coming auction site called Cars & Bids. Probably not the best presented example in terms of photos and details, but a clean example with low miles. It brought $39000 in late October and was a no sale. They then ran it two weeks later on Bring a Trailer, a more established specialty auction website that has really gained traction in recent years. It sold this past week for $47000. It is rare to see the exact same specialty car being sold so soon on two different platforms, but it proves what I have believed for a long time. You must do your research, know your product, and know the audience that shops different sales channels. This is not to say the Bring a Trailer is always the best place to sell and that Cars and Bids isn’t a good place. It’s knowing the market and each channel’s strength. ?

No, you don’t need to be a “car gal or car guy” to be successful in this business, but it does help if this is your passion. One of the reasons I love this industry so much is the challenge that every asset brings. Whether it be a run of the mill Honda Accord or a rare Boss 302, the data doesn’t lie and being laser focused on the net return will almost always give you the best overall outcome. It’s not always as straight forward as the Boss 302 example here, but the fundamentals are often the same. Largely, timing, location/channel, buyer audience, available technology, CR details, and how it is represented. Pretending the assets are impacting your own pocket can help yourself and your team get in the right frame of mind, as well. Caring about each one, as silly as that sounds, really changes how you approach selling as a remarketer.

May your selling the rest of this year be just as fruitful as it was for this seller and you rise to the challenges that lie ahead. Have a great rest of your week!

#remarketing #saleschannelmatters #BringaTrailer #CarsandBids #EveryDollar #knowyourbuyers

About the author:

Jason Herman is a 23-year veteran in the remarketing and automotive finance world and an avid car enthusiast. Having managed bank and fleet lease end operations, 1st?and 3rd?party remarketing, residual value setting & risk mitigation, and the sale of well over 1 million off lease & repossessed vehicles in his career, he enjoys providing guidance and expertise to both those new to and experienced in the automotive finance industry, as well as helping end consumers purchase or sell vehicles. Should he be able to help, Jason can be reached at?[email protected].?

Please check out my automotive finance & car buying blog:?https://www.carguy4u.com/car-buying-and-auto-finance-blog