While searching for a better source for our pre-owned inventory, and being tired of paying the high auction fee's
we decided to think outside of the box. So we started doing research, and a lot of it! The first thing we had learned was very few dealership's
were trying to source inventory from the private party, and at first glance it made sense. The private market was known for being retail vehicles
so it would be tough to get these vehicles for the right price so we as a dealer could still turn a profit. But we thought heck, lets give it a shot
and so we did.
We hired two full time car buyers to work the private market and VettX was born. After a year of trials, tribulations and mostly mistakes we decided we need to work smarter, and thats where the technology would come to play. Spending hours and hours just searching for the right vehicles turned out to be really innefficient, and once a vehicle was spotted we learned another challenge would present itself. The seller held their vehicle to a really high standard, and price. Which they had all the right to since it was a high quality vehicle, something we would never find at the auto auction. So we got to work running analytics to help us decide which vehicles were worth stepping up on. Once we started paying a little more for these private party vehicles based on our analytics we quickly saw these units were flying off the shelves returning a higher profit. That was our Ahha moment!
The vision we had was to have a source for our pre-owned inventory outside of the competetive auctions and simply be dependent on trade-ins.
Our dealership had tremendous success in a auto buying program through our service department known as The Vehicle Exchange Program, We were even
featured in Toyota Today for our success and started having dealers from around the world coming to see how we were so successful. The first thing we
started hearing was how difficult it was for other dealers to join in our success. At this point we started telling dealers about how we were having
some success buying private market vehicles using a propriatary software we built in house and this got them excited. This in turn got us excited as
we knew we were on to something special.
Now we had to put it all together and see what we really had, which was not only a intelligent software that saved us a ton of time in our vehicle searching but we had developed an overall philosophy. Our philosophy seemed simple at first, basically stating that not only can you buy better vehicles than the auction, but you could turn these vehicles quicker and for a higher profit. What came next was the true secret sauce, The fact that you can trully take back the marketshare in your prime market area which no dealer at the time and still were thinking about. Meaning, no dealers were looking at the private market as their competition. The Private market was being completely overlooked which was amazing to us as we were apart of that thought process in the early stages. The private market knew that if they traded their vehicle into a dealer they would get beat up on price. This was not something they were interested in as these vehicles were of high quality and taken care of. So our goal became to not only source these vehicles but repair the relationship between the private seller and the dealership. Once we implamented this philosophy we started seeing a happy customer and a happy dealer which was magic. We started repairing a relationship that had been broken for 30 years! These private party sellers then were turning around and purchasing their new vehicle from the dealer that was making such a great offer on their vehicle.