Auburn Hills, MI (PRWEB) February 20, 2010
Auto dealers are increasingly turning to the Internet to find inventory for their lots as the supply of wholesale used vehicles tightens, according to a recent ShipCarsNow survey. In addition, two out of three dealers surveyed said they would buy more cars from Internet auctions if auto shipping were better integrated with the online purchase transaction.
ShipCarsNow conducted the dealer survey as part of its annual market research into dealer attitudes about auto transport and online trading of used cars. Out of 169 dealers surveyed, 95 percent of the respondents indicated they expect to purchase the same number of vehicles, or more, over the Internet in 2010 than in 2009. Dealers ranked time and cost savings, followed by ease of use and better inventory selection as the top reasons for sourcing via the Internet.
Decline in Wholesale Supply Forces Dealers Online
According to industry analysts, the flow of used cars into the wholesale market from trade-ins, consumer lease returns, and fleet/rental cars is expected to continue to decline until 2011 and perhaps longer. With fewer cars to choose from at the local auctions, more dealers are going online and sourcing vehicles from greater distances.
When buying most other items online, people rarely concern themselves with shipping details related to their purchase, other than delivery time and cost. However, shipping logistics are not usually built into an auto auction purchase. The ShipCarsNow survey suggests that dealers actually restrict their Internet trading based upon their ability to coordinate transportation for their purchases. Two-thirds of the dealers said they would buy more vehicles online if auto transport were more integrated with the purchase transaction.
Solution Is Multimodal Transportation
Survey respondents contradicted a common view of some industry experts that delivery speed matters more to car dealers than delivery cost. Approximately 64 percent said that if Internet auto auctions offered shipping, they wanted the option to choose between expedited delivery or lower cost standard service depending on their business needs. Until now, the primary transportation service offered by auto auctions has been exclusively truck, which could be categorized as ‘expedited’.
In response to these shifting trends in the used car market, ShipCarsNow is working with Internet auto auctions and used car dealers to offer multimodal auto transportation services that include both truck and rail options. In the past, a multimodal delivery option for autos was limited to auto manufacturers and high-volume shippers. With the introduction of ShipCarsNow and its vehicle logistics technology, used car dealers - even those shipping single units - can now take advantage of rail's economies of scale. Rail transport offers lower cost, higher efficiency and less damage over longer distances - and is more environmentally friendly than truck transportation.
"We help auto dealers expand their trading radius beyond the 200 to 500 mile range,” said Sarah Harvey, Director of Business Development for ShipCarsNow. “We make it easy and affordable to ship cars nationwide so auto dealers can expand their markets and buy the cars they need, wherever they can get the best deal."
ShipCarsNow is a subsidiary of Insight Network Logistics and part of Union Pacific Corporation. Formed in 2006, ShipCarsNow was created to provide the used car industry with affordable multimodal auto shipping services. The company brings nationwide transportation resources and technology to the auto remarketing industry as a natural extension of Insight’s logistics and transportation operations for new car distribution. ShipCarsNow.com provides used car shippers (e.g. auto manufacturers, auto auctions, dealers, finance companies, fleet operators, etc.) with a fast and easy way to book affordable vehicle transportation online.
For more information, visit http://www.ShipCarsNow.com or contact ShipCarsNow Toll Free (866) 207-3360.