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Digital Wholesale: Successful Buying and Selling in the Time of COVID-19
Zach Hallowell
VP, Manheim Digital
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WHOLESALE INSIGHTS FROM THE PANDEMIC
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BEFORE COVID-19: THE RISE OF DIGITAL
Shift from Physical
to Digital Sales
Increased Adoption
of Digital Platforms
& Mobile Apps
Increased Usage of
MMR & Mobile Scans 51.5 53.0
18.7 20.1
0.0
20.0
40.0
60.0
80.0
2018 2019
Milli
ons
MMR Lookups VIN Scans
39% 43% 48% 52%
0%
20%
40%
60%
80%
100%
2017 2018 2019 2020 YTD W13
Digital Physical
0.0
50.0
100.0
150.0
200.0
2012 2013 2014 2015 2016 2017 2018 2019
Tho
usan
ds
Mobile Total Digital
Source: Manheim Data
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BEFORE COVID-19: CLIENT SENTIMENT
80%of dealers have been
doing at least some pre-
sale research digitally
3/4say digital tools make
it easier to prepare for
the auction and
enhances their work.
2/3say digital tools have a
positive impact
Dealers Expect Growth Across Various Digital Channels
Dealers expect wholesale
digital buying to grow over
30% in the next year.
Source: Manheim Data
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CURRENT: BUYERS AND SELLERS ARE ADAPTING TO DIGITAL ONLY
6 in 10 dealers say that Simulcast is working
as a replacement
36% of Simulcast buyers since March 16 were first-time buyers
on the platform in 2020
Simulcast Remote Seller Logins Simulcast Bids
Source: Manheim Data
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“The system is really easy and I really enjoy it. I'll be
honest. I was one of the biggest skeptics against it
because I really hadn't tried it and I couldn't get over
the idea of bidding online. But since I've done it the
last few weeks I do like it.
The more I use it, the more I like it. I like the fact
that I do not have to go to the auction. I like the
fact that I can still stay at my office and tend to
my customers, tend to my day to day operations.
I like the fact that I don't have to worry about getting
out infecting anybody or getting sick myself. And now
that we can go a day in advance and kind of peek at
the auction, I mean, I like everything about it.”
-Manheim Dealer Client
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CURRENT: THE MARKET IS IMPROVING…
Sales through Manheim’s digital platforms have
grown nearly 50% since the switch to all-
digital.
Digital buyers have purchased over 1 million
cars through our digital channels this year.
In May 2020, sales on OVE were up 35% year-
over-year.
Source: Manheim Data
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SMART BUYING IN THE DIGITAL MARKETPLACE
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HOW TO FIND THE INVENTORY YOU NEED
24/7 ONLINE
MARKETPLACES
DEALER
CONSIGNMENT APPS
REAL-TIME
BIDDING
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WORKING WITHIN THE MARKET’S CURRENT PRICING DYNAMICS
Fact: Wholesale prices are still down, but retail prices haven’t
been as affected.
Takeaway: There are lots of opportunity for profit.
Fact: MMR has mostly recovered but is still slightly lower.
Takeaway: You can still buy a little above MMR and have room
for profit on the retail side.
Fact: Dollar cost averaging can work in your favor.
Takeaway: Buying more in the down cycle can pay off as
values come back.
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UNDERSTANDING VEHICLE CONDITION
Condition Reports Vehicle History Reports Valuation Guides
Images AutoGrade Engine Noise
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BUYER SUCCESS STORIES
BUYERSUCCESSSTORIES
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SUCCESSFUL DIGITAL SELLING STRATEGIES
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ONSITE VS. OFFSITE: WHICH WORKS BEST FOR YOUR INVENTORY?
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ONSITE WHOLESALE: SEEDING INVENTORY FOR SUCCESS
Source: Jan – mid-May Manheim Data
Listings with CRs have 5x more bids
5XUnits with CRs get 3x more transactions
3XUnits with CRs average 10 more VDP views
10Sold units with a CR have 3x fewer arbs
3X
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OFFSITE WHOLESALE: MANAGING INSPECTIONS
Self Serve Inspections ConciergeVs.Self-Serve vs Concierge
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ENGAGING IN THE AUCTION AS A SELLER
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SellerSUCCESSSTORIES
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CHANGES ON THE HORIZON
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• Wholesale will remain heavily digital for the
foreseeable future.
New technologies will make it easier to locate
and preview inventory.
We’re going all-in on imaging.
Lot access and in-lane bidding are contingent
on safety first.
WHAT’S NEXT FOR WHOLESALE?
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Thank you!
Zach Hallowell
VP, Manheim Digital