For dealers in Canada struggling with the ups and downs of the automotive remarketing and retail industry, one trainer has some advice to offer: put a structure in place to manage the situation.
Gino Côté, President of Evolution Automobile, is a coach and trainer who specializes in the management and sale of used vehicles. In an interview with Canadian auto dealer, he said that with everything going on in the auto retail industry, dealers need to specialize each step of their “assembly line”—from the arrival or purchase of the vehicle at the auction, to the sale.
“It’s more about ensuring we have a structure in place so that we can have the time to be on things like internet platforms and online auctions, because this is where we buy a lot of vehicles—where the wholesaler contacts are,” said Côté.
It certainly has been an interesting year- with supply issues on the new and used vehicle front, and the global microchip issue that caused assembly lines to temporarily shut down, among other challenges. As a result, there are fewer events and private sales at the dealership, and less opportunity for that contact and engagement.
Furthermore, the price of a used vehicle at auction has skyrocketed compared to pre-pandemic levels, and the bulk of the stock is headed to the United States as exports, with little imports in Canada—as seen from a recent DesRosiers Automotive Consultants report. DAC reports that nearly 310,000 units flowed into the U.S. in 2020, while less than 9,000 units were imported into Canada.
“The good news is—while, yes, we pay dearly for these vehicles—we can sell them at a higher rate than the market, and there is less room for negotiations with consumers,” said Côté, adding that “the profits are excellent.”
But for dealers to really take advantage of the current situation and environment, Côté advises implementing a structure.
“There is a lot of opportunity in online auctions, at the buying level,” said Côté. “So it’s often about freeing up the sales manager to have time to buy vehicles, and to have time to be on (internet) platforms.”
He said the structure nowadays is a little heavier than it could be, particularly on the buying side, but someone needs to manage all the digital traffic coming into the dealership—someone that can specifically manage the CRM. Like a gatekeeper.
“More and more, it has become a specialization: inventory and traffic management,” said Côté.
Overall, the key takeaway is to put the right structure in place, and to adapt quickly to the market. “Then you will be able to seek out all the opportunities that are available to you,” said Côté.
