With the success of Tesla and OEM plans and comments likeJim Farley, CEO of Ford, there’s no doubt that automaker digital retailing may soon be on the rise in the industry. As a result, more car buyers formed by the convenience of Amazon can happily agree to purchase their vehicles.

And while many dealerships have quickly embraced this shift by investing in digital marketing and e-commerce platforms, some are still struggling to keep up.

But the used-car market is one area where many dealerships have yet to fully harness the power of digital retail. Selling used cars has always been a challenge for dealerships because margins are often thin and competition is fierce. However, as the industry shifts to buying online, small and large dealer groups are considering different branding for their used cars. Fortunately, OEMs are unlikely to enter this field anytime soon.

DMSCWhat can dealers do about OEM retail?

It may seem difficult, but with the right approach, selling used cars online can be a very profitable business. In reality,some experts like Brian Paschbelieve that creating a separate digital retail brand for used cars could be a game-changer for dealerships. Dealerships are being pushed around by OEMs and the efforts of large dealer groups likeLithia, who formed Drivewayshow that it is possible to fight back.

Pasch recommends that dealers useAsbury Automotive GroupandSonic Automotiveas examples of what can be done. Although there is hope forlegal protection against direct sales to the manufacturer,a different used car brand and platform may soon be the most profitable option.

Does building an online used car dealership brand make sense?

There are several reasons why this strategy makes sense. First, dealerships can better focus their digital marketing efforts on local used car shoppers. And, if the distribution of new car sales is to change, dealerships will need to scale and scale their operations to retain customers.

By creating a separate website or online portal specifically for used cars, such asVan Horn Automotive CloudLot Shop, dealers can ensure their message reaches the right audience. And with the right tools and resources in place, they can also make the buying and shopping experience much smoother and more efficient for customers.

Second, a dedicated digital retail brand gives dealers more control over pricing and profit. In today’s highly competitive market, used car prices are often all over the place. By creating a distinct brand, dealers can set their pricing strategy and ensure they make a substantial profit on every sale.

Finally, a distinct digital retail brand can help dealerships build a more loyal customer base. Customers who have a positive experience with buying a used car are more likely to return in the future and recommend the dealership to friends and family.

Creating an online used car dealership, is it worth it?

Creating a distinct digital retail brand is not without challenges. But perhaps the biggest challenge is just getting started.

Developing a new website or online portal, establishing a pricing strategy and building a customer base takes time, effort and money. But, with new car prices rising beyond the budgets of many consumers, investing in a used car dealership brand is well worth it for dealerships keen to capitalize on the power of digital retail.

So what do you think? Should car dealerships create a separate digital retail brand for their used car business? We’d love to hear your thoughts in the comments below.

resellersDid you enjoy this article by Steve Mitchell? Please share your thoughts, comments or questions regarding this topic by contacting us at [email protected]

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