As a car dealer, you want to offer your customers a wide selection of vehicles. Therefore, trade-ins of used cars are likely part of your daily routine - nothing new so far. And as you probably know, there are several sources for acquiring used cars. However, many dealers still do not utilize digital auction platforms like CarOnSale for trade-ins. In this article, you will learn why it is especially beneficial for independent dealers to incorporate B2B auctions into their used car management.
Trade-ins of used cars often occur when customers purchase a new car and trade in their old vehicle. According to a survey by the German Automotive Trust (DAT), this happens with 55% of new car buyers and 37% of used car buyers directly at the dealer.
The used car dealer has two options: they can either include the trade-in in their inventory for retail customers (B2C trade) or offer it to other dealers for purchase (B2B trade). B2C refers to business relationships between dealers and end customers, while B2B refers to business relationships between dealers.
Purchasing trade-ins from customers - that's part of your daily business, and as a professional, we don't need to tell you much about it. But what about acquiring trade-ins from authorized dealers or fleet providers? Why is it a profitable business for you?
Because the used car market is tight. In 2022, according to the Federal Motor Transport Authority, only 5.6 million used cars were sold in Germany. In 2021, it was 6.7 million, and in 2020, it was even 7.0 million. This means that in recent years, there has been a decreasing supply of vehicles available for customers.
In addition, there are delays in the delivery of new cars. One reason for this is the ongoing microchip crisis, which affects not only the automotive industry. Due to chip shortages, only a few of them are available. This means that many almost-finished new cars cannot be delivered because they lack microchips. Customers sometimes have to wait for their new vehicle for months, and many have little patience or cannot afford to wait because their old car is no longer roadworthy.
The result: Some customers who initially want a new car opt for a young used car instead. This further reduces the selection available to dealers. The demand for used cars is high, the supply is low, and as a result, prices increase significantly.
In 2022, 23% of the sold used cars were valued up to 10,000 euros, while the largest group, 46%, consisted of vehicles priced from 17,500 euros.In comparison, in 2019, 44% of used cars were sold for under 10,000 euros, and only about 25% cost more than 17,500 euros. (Source: DAT-Report 2023)
So, by purchasing B2B trade-ins, you not only enhance your offerings but also become more competitive and resilient during crises. Your customers will benefit from a wider selection and appreciate it. In fact, according to DAT, 23% of all respondents who planned to buy a car in 2022 but did not proceed cited limited choices as the reason.
If you have decided to purchase trade-ins, the next question is where to find them at a good price. One option is, of course, traditional brick-and-mortar dealerships, with backyard dealerships being a popular source. However, you can also conveniently buy trade-ins online.
For end customers, the internet has long been an important tool in the decision-making process for car purchases. Most end customers research online before choosing a dealer to visit. In fact, 25% of all used car buyers can even imagine purchasing a vehicle exclusively through an online dealer contact, as found in the TÜV Nord's Digital Study 2022.
In 2020, 41% of all dealers in Germany also reported using online platforms for reseller auctions to purchase trade-ins. However, considering the current digitalization and scarcity of goods, this number is surprisingly low. Therefore, you should also utilize B2B online platforms like CarOnSale for acquiring used cars. (Source: autohaus.de)
CarOnSale sees itself as your partner that aims to simplify the purchase of trade-ins. By using our platform, you benefit from the following advantages:
Let's start with the most important point: At CarOnSale, you have access to a significantly larger B2B inventory of trade-ins than any local dealership. This is because you are not limited to a specific region. While you may have previously only observed the local trade-in market when looking to purchase trade-ins, CarOnSale offers you offers from dealers throughout Europe.
You know your typical customers very well and understand the type of vehicles they are looking for. Naturally, you want to buy trade-ins that meet your customers' preferences because customer satisfaction is essential. However, with the current shortages in the used car market, it is sometimes challenging to find specific vehicle classes at reasonable prices. At CarOnSale, you will find models from all categories. Our inventory includes dealership trade-ins, corporate fleet trade-ins, and fleet trade-ins. In short, the marketplace covers the entire range of vehicles, from premium midsize cars and SUVs to compact subcompact cars.
Another advantage of buying trade-ins through CarOnSale is the uncomplicated and efficient processing of reseller transactions. We handle all the necessary steps to ensure a smooth purchase!
Secure payment processing via COSPay
Optional transportation via COSCargo
For transportation, CarOnSale provides the COSCargo tool. Within 5 to 10 business days*, we deliver the vehicle directly to your location, and during transport, you will receive regular updates on the whereabouts of the vehicle. In concrete terms, after a successful auction, you can sit back and relax while CarOnSale handles the transaction.
When purchasing a trade-in, every euro counts because your profit is derived from the purchase and resale price. This is especially true given the current high prices of used cars. Take advantage of low-risk profit generation by exploiting price differences abroad. After all, inventory and prices of vehicle models differ between countries and domestic markets. At CarOnSale, you can set a maximum bid for each auction, ensuring that your profit margin does not become too small.
As mentioned earlier, many dealers are still skeptical of digital tools like CarOnSale. As a result, they miss out on many advantages when it comes to purchasing trade-ins. We want to support you in your daily business of acquiring used cars, which is why we have gathered a few typical prejudices and debunk them.
That's correct; as an online auction platform, physical inspection is not possible. However, at CarOnSale, you can expect vehicle exposés that far exceed industry standards! Our vehicle assessors, located directly at the suppliers, ensure this. They assess the vehicles based on 75 predefined criteria, highlighting any notable features or issues in the exposé. Our exposés include information such as paint layer thickness and tire tread measurements, engine audio recordings, and detailed videos - as if you were there in person! Still not convinced? Complete your impression with the 360-degree condition overview. It provides a comprehensive view of any potential vehicle defects. Based on this information, you can purchase trade-ins without taking unnecessary risks.
With COSCheck Plus, you are protected against undisclosed mechanical damages up to 5,000 euros! And all this for only 99 euros.(No test drive is conducted by our assessors; it is a vehicle inspection)
That's also true. We charge a fair platform fee for successful auctions. The fee structure is based on the vehicle price but is capped above a certain amount. Thanks to the wide price range possible in auctions, we assure you that buying trade-ins from us is worthwhile. A clear breakdown of costs is always transparently available.
This enables fair pricing for both buyers and sellers!
You don't have to. Place your bids conveniently using the bid agent by setting your maximum bid, and the automation takes care of the rest while keeping you informed. Additionally, a CarOnSale representative is available to you via WhatsApp, phone, or email. Of course, the platform is also mobile-friendly, allowing you to quickly check the current status even while at work. Plus, you save the time previously spent on inspections or auctions at traditional dealerships.
Purchasing trade-ins on digital platforms like CarOnSale has tremendous potential for professionals like you to remain competitive, especially in challenging times. If you have any further questions about the process, feel free to contact us by phone or email.