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LAS VEGAS — The scarcity in used-vehicle supply will likely continue through the rest of 2010 and beyond, and the techniques dealers employ will be pivotal to how well they adapt to these challenges, according to executives from OPENLANE, who talked about various used-vehicle and remarketing issues with Auto Remarketing on Wednesday at the National Independent Automobile Dealers Association Convention and Expo.

In fact, when asked about trends for the this year and going forward, Andrew Iorgulescu told Auto Remarketing that "the headline is definitely going to be the scarcity of supply."

He also suggested there will be a lot of eyeballs on the new-car market to see what the yearly sales total it is able to hit. This, of course, has a trickle-down effect on the used-car market, including the area of supply.

With regards to the current used-vehicle supply shortage, while acknowledging that some of the gaps will likely be filled, Iorgulescu said that it still is a pressing issue for dealers.

"Dealers are going to have to be more creative in how they have to source vehicles," Iorgulescu said.

Among other points of importance regarding the wholesale market, he also suggested that dealers would be well-served by buying vehicles more on specific needs or requests from customers, and not basing purchasing decision as much on speculation.

"Their businesses are changing. Dealers are learning how to operate their businesses more lean," Iorgulescu stated, also noting that dealers are "learning how to be more effective at getting to customers."

He later added: "We're seeing independent and franchise dealers using a lot more data in their decision-making. Dealers are becoming a lot smarter in how they run their data." 

Volumes Moving Online 

Another trend that OPENLANE has spotted has been the continued emergence of the Internet role's in the auction marketplace. Iorgulescu noted that "the supply is moving online" and that not only has the online market become effective at drawing wholesale buyers and sellers, but it has also become easier for users to understand and employ.

Moreover, Iorgulescu said that all the "little guys" in wholesale space have moved online, as well, not just the major auction players.

Utilizing Reports

Moving on, the OPENLANE executives discussed two specific wholesale reporting tools it offers that can dealers make smarter decisions when it comes to the wholesale market.

The Weekly Auction Results report is geared to both buyers and sellers, but somewhat more to buyers. Essentially, it provides a list of the prices of specific at auction in the last week.

"Dealers can get a sense of what's going on (from) a price standpoint at the auction," said Ed Chuang, OPENLANE's director of marketing.

Meanwhile, the Market Value Guide is geared more toward sellers, and gives Black Book pricing along with similar units' transaction prices from the last 30 days.

Recent Upgrades

Iorgulescu and Chuang also shared with Auto Remarketing some of the upgrades OPENLANE has implemented to help dealers out.

Among these enhancements made on the buyer side has been shortening the vehicle details page, which allows them to see everything "above the fold."

There are also new icons on the search results page that indicate to a buyer certain attributes a particular vehicle has. For instance, these individual icons may indicate that a vehicle is a first-run unit, that it is certified, or frontline ready, just to name a few qualities.

"They (the buyer) can make a quick decision just by looking at a search results page, and not going into the vehicle details page," Iorgulescu shared.

For sellers, OPENLANE says it has simplified the vehicle listing process and condensed it from five screens to one.

Along with those upgrades, OPENLANE has added third-party inspection and post-sale inspection programs. Basically, these make the inspection process a "self service" for any seller.

The company began the pilot program for TPI about six months ago and has since rolled out in nationally and is adding more inspectors to the program. Then about two months ago, OPENLANE added PSI to its offering.

For the buyers, "it's the buying confidence. You get peace of mind, and if there happens to be an issue, you're aware of it before you invest more into (the vehicle)," Chuang explained.

In essence, the PSI is designed to foster greater buying confidence, while the TPI it gives sellers a stronger marketing point.

Advice to Dealers?

When asked if he had any advice for dealers in this market, Iorgulescu stressed the important of utilizing the Web, using data to make decisions and employing processes.

"Get online. Get smart about your data and work on the processes in your store," he said. "Use data to make decisions and put a process around it."