By Connie Suozzo and Nicole Graham-Ponce, From the June issue of UCD
In an industry where margins are tightening and consumer expectations are evolving at breakneck speed, independent dealers are facing an uphill battle.
New car prices have skyrocketed, which means fewer trade-ins hitting the secondary market. At the same time, lease returns have plummeted and fleet companies are holding onto their vehicles longer. The result? A drought of affordable used vehicles.
To complicate things further, dealers aren’t the only ones feeling the pinch. High interest rates mean auto loans are less accessible for consumers everywhere, especially for subprime buyers who are the bread and butter for many independent dealers.
To truly succeed amid all these challenges and opportunities, independent dealers need to approach remarketing as something more than just about moving metal off the lot. They need a smart, intentional remarketing strategy that meets today’s moment, as well as their dealership’s unique needs.
Inventory and Financing: The Two-Headed Challenge
When we talk to independent dealers across the country, two challenges consistently rise to the top of their list of pain points: sourcing inventory and securing financing.
Despite the proliferation of auction platforms and financing services, many independent dealers still struggle to find solutions that truly meet their needs and customer demands. They end up bouncing between different sources and services, cobbling together a patchwork approach that’s inefficient and often leaves money on the table.
The most successful independent dealers are those who have developed systematic approaches that provide stability and consistent profitability by solving their sourcing challenges, accessing tailored financing solutions, and minimizing risk.
So, what does that look like in practice? We’ve identified five key practices that any independent dealer can use to overcome their inventory or financing challenges.
Expand your search for inventory
The days of relying solely on local physical auctions are long gone. Most dealers are now sourcing vehicles from multiple channels—online auctions, dealer-to-dealer platforms, trade-ins, private purchases and even direct from consumers.
Each channel has its advantages, and diversifying your sourcing strategy can help insulate your business from supply fluctuations in any single channel. It also opens you up to types of inventory you may have never even considered, drawing in new buyers.
But it’s not enough today to just source from more channels locally. You should be looking for deals outside your backyard that, even when you add in transportation, make it more economical than buying locally. You can make it even more cost-effective to expand your sourcing area by finding an auction with transportation integrations. Many of these will let you seamlessly arrange transportation upon purchase.
Get tools that simplify and drive efficiency
It’s easy to get overwhelmed by the sheer number of remarketing solutions available.
But we’ve seen dealers become much more agile and streamlined when they look for “one-stop-shop” options — places where you can buy, sell and access a number of different supporting solutions like reconditioning and merchandising. This simplifies the buying experience and helps create easily repeatable processes for vehicle evaluation and purchasing decisions that save you a ton of time.
On the financing side, you should look for self-service tools that help you minimize operational disruptions and save on certain fees. Financing mobile apps allow you to manage your business from anywhere, at any time, so you can keep your business running whether you’re on your lot or at home.
Finding services that make the vehicle auditing process as fast and streamlined as possible is also critical. Self-audit options in particular are great for independent dealers with smaller staffs who may not be able to handle in-person audits by third parties. These self-audit options can usually be completed from a mobile app, making it more convenient for your schedule. They can even mean fewer audit fees, protecting your bottom line.
Seek tailored and personalized options
One-size-fits-all solutions rarely meet the unique needs of independent dealerships. Instead, look for a solution or partner who understands your business model and can offer flexible terms that align with your cash flow and inventory turn rates.
For inventory, that means having a reliable network of both physical and digital auctions. You won’t always find the deals you need in the lanes, or on a digital marketplace. Having easy access to both gives you freedom to focus on purchasing the inventory you need most, not just whatever inventory is available at the time.
In financing, tailored solutions usually come in the form of flexible pricing options. Look for a variety of floor plans. These could involve deferred payments that let you keep cash on hand, or no curtailments until the vehicle is sold.
Look for risk-mitigating solutions
We all know unforeseen vehicle repairs or other costs can add up fast and eat into potential profits, but strong assurance solutions ensure you’re prepared for them.
It’s best to look for some form of a return guarantee that allows you to return purchases that didn’t match the CR. These guarantees give you a refund of the purchase price and buy fee—and the peace of mind you need to confidently purchase cars online.
Another type of assurance we recommend is a traditional post-sale inspection. These ensure your purchases are exactly what you were expecting before the vehicle leaves the auction and let you know right away if there’s an issue with the vehicle.
Arbitration can also be a huge challenge for many independents without much in the way of legal resources. So, look for policies that go above and beyond standard guidelines and offer protections regardless of whether you are physically present.
Join Us at NIADA for more actionable insights!
The road ahead for independent dealers isn’t easy, but with the right strategies and partners, it’s one that can lead to sustainable growth and profitability.
So join us in-person at the 2025 NIADA Convention! We’ll be diving into these challenges further and providing more actionable insights in our presentation: “Rev Up Your Revenue: Remarketing Strategies for Independent Dealers.”
