OPENLANE Empowers US Dealers With Faster Vehicle Wholesaling
OPENLANE, a prominent operator of digital marketplaces for wholesale used vehicles, has introduced a new feature called 'Absolute Sale'. This feature allows sellers to signal their commitment to selling a vehicle to the highest offer of the day. This generates higher buyer confidence, visibility, and engagement, optimizing returns for sellers.
According to James Coyle, EVP and president of North American marketplaces at OPENLANE, the feature ensures that buyers save time and feel confident in their bidding strategies. Sellers have reported an average price increase of $500 per vehicle, and $1,000 for vehicles priced over $20,000, after activating Absolute Sale.
Absolute Sale is available on all dealer-consigned vehicles in OPENLANE's US marketplace and can be activated any time after 9 a.m. ET on the sale day.
- New 'Absolute Sale' feature boosts buyer confidence and engagement.
- Reported average sale price increase of $500 per vehicle.
- For vehicles over $20,000, the average price increase is $1,000.
- Feature allows sellers to indicate commitment to the highest offer, optimizing seller returns.
- High visibility with dedicated carousel and special badges for Absolute Sale vehicles.
- Available on all dealer-consigned vehicles in OPENLANE's US marketplace.
- Potential risk of over-reliance on new feature for sales performance.
- No data on long-term impact on overall marketplace dynamics.
- Uncertainties on how Absolute Sale will affect seller and buyer behaviors in the long run.
Insights
OPENLANE's introduction of the 'Absolute Sale' feature adds a distinct dynamic to their digital marketplace for wholesale used vehicles. This innovation is likely to enhance buyer confidence and engagement, as it guarantees that the highest bid wins without prolonged negotiations. By addressing a significant pain point in the industry, OPENLANE can potentially increase transaction volumes and improve overall market liquidity. This feature could also attract more dealers to the platform, leading to higher platform usage rates.
In the short term, the implementation of 'Absolute Sale' may spur immediate increases in sales velocity and pricing, as indicated by the average price increments mentioned. Over the long term, it could solidify OPENLANE’s market positioning as a preferred digital marketplace, driving sustained growth and reinforcing their competitive edge.
However, the ultimate success of this feature will depend on its adoption rate and the satisfaction of both buyers and sellers with the streamlined process. Any perceived discrepancies in value realization or buyer experience could impact its acceptance.
Overall, this development demonstrates a proactive approach to industry issues and aligns with the evolving digital trading landscape, potentially setting a new standard in the wholesale vehicle market.
The 'Absolute Sale' feature's immediate impact on OPENLANE’s financials is likely to be positive. By increasing the velocity of sales and potentially improving the average sale price by
From a financial perspective, the increased transaction speed and improved pricing could lead to better cash flow management for dealers, thereby fostering more frequent use of the platform. Additionally, if the feature leads to higher engagement and visibility, it could attract new buyers and sellers, expanding the marketplace’s user base and contributing to long-term growth.
Investors should monitor user adoption rates and overall market responses to gauge the feature's effectiveness in driving sustained financial performance. The success of 'Absolute Sale' as a revenue driver will be key in assessing OPENLANE’s future profitability and market share expansion.
"Absolute Sale" Delivers Increased Velocity, Higher Engagement, Better Results
"With just the click of a button, sellers can indicate they are committed to selling a vehicle that same day, and buyers looking to stock their lots can quickly discern who's ready to deal," said James Coyle, EVP and president, North American marketplaces at OPENLANE. "Buyers also save time, knowing that if they submit the highest bid, the seller will honor the win and sell the car — it's easier than ever for buyers to feel confident in their wholesale bidding and buying strategy. For sellers, Absolute Sale rapidly and efficiently yields more eyeballs, offers and proceeds. And that velocity generates results: after activating the feature, sellers have seen sale prices increase by an average of
Absolute Sale is available on all dealer-consigned vehicles in OPENLANE's US marketplace, and can be activated by the seller during the sale day at any time after 9 a.m. ET. Vehicles launched in Absolute Sale mode indicate the seller will sell to the highest offer received that day, and are featured prominently in a dedicated carousel with a special badge and timer that increase buyer visibility and engagement. Buyers can also filter for Absolute Sale vehicles, enabling them to more confidently focus their sourcing and negotiating on vehicles that sellers have committed to selling that same day.
"Our customers' success is our success, and Absolute Sale certainly delivers on that promise," said Shiv Dutt, SVP and president, US marketplace at OPENLANE. "Like many of our most transformative innovations, Absolute Sale had its genesis in customer conversations focused on understanding how OPENLANE can help ease persistent industry pain points. Everybody wins: buyers know their time negotiating won't be wasted, and sellers can feel confident they're getting the very best market value."
To learn more, request a preview or schedule a demo, visit openlane.com.
OPENLANE Contacts: | |
Media Inquiries: | Analyst Inquiries: |
Laurie Dippold | Brad Lakhia |
(317) 468-3900 | (317) 249-4559 |
laurie.dippold@openlane.com | investor_relations@openlane.com |
About OPENLANE
OPENLANE, Inc. (NYSE: KAR) provides sellers and buyers across the global wholesale used vehicle industry with innovative, technology-driven remarketing solutions. OPENLANE's unique end-to-end platform supports whole car, financing, logistics and other ancillary and related services. Our integrated marketplaces reduce risk, improve transparency and streamline transactions for customers around the globe. Headquartered in
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SOURCE OPENLANE
FAQ
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