So we have noticed a new
used car sales platform just been launched in Australia for motor dealers only to buy, sell, request cars and also to request wholesale pricing in a fully automated style, linking dealers and wholesalers together across the web! Now this sound logical, but amazingly no other system appears to exist in this market place let alone operate in a fully automated, real time sequence - is this a new phase to replace the auction model possibly?
What intrigues us about this model is that the platform can be used for almost any product and can be linked to different online sales platforms, so, if a system can market a car to every dealer who selects that particular "make" and all dealers who recieve the notification by email can also reply to the
selling dealer instantly using the same method, the selling
dealer as well as all buyers will know that in instant time a deal can be struck therefore in the models own right creates urgency for both buyers and sellers to then allow the 2 parties to negotiate a suitable price - which could be favourable or not so, depending on which point of view your looking at it.
In our mind this model is compelling and the business model will be interesting to watch how
motor dealers and
wholesalers sign up to it online allowing them to not have to leave what they are doing and conduct business 100% online which has to offer efficiencies in it's own right.
We would think just like the salvage industry has embraced "online", the
motor dealers dealing in used cars should really start to consider looking at this model as did all salvage dealers a few years ago. The economies of scale that Australia offers geographically speaks for itself and you would have to think that
www.motortrademail.com.au are on a winner, especially seeing they have created a new market within the industry that hasn't been explored yet - time will tell!
