When to Wholesale A Vehicle vs. Retail
2 mins
Determining the best option to dispose of your trade-in vehicles — whether wholesale or retail — can be challenging, but with OPENLANEⓇ, you’re in good hands. We provide tools and insights to help you optimize your dealership’s profitability and inventory management. Whether you aim to boost profit margins or speed up inventory turnover, understanding when to wholesale a vehicle is key to your dealership’s success.
Understanding Retail vs Wholesale Trade
As a dealer, you have choices for handling your trade-ins. Retail sales focus on selling directly to consumers, offering a personalized dealership experience. Wholesale sales, however, involve selling to other dealers or auction houses. Our marketplace provides tools and resources to help dealers make informed decisions on when to wholesale a vehicle. With OPENLANE, you’re supported every step of the way.
Factors to Consider in Retail vs. Wholesale Trade
There are a number of factors you may consider when deciding whether to retail or wholesale a vehicle. Market conditions and consumer demand are crucial. Has there been a recent uptick in consumer demand in your area, whether generally or for specific kinds of vehicles? Or on the flip side, are certain cars not selling well in your market at present? Understanding your local market conditions and trends can help you determine the best candidates for wholesale.
The current inventory levels on your lot could be another deciding factor. Do you have too many of the same models on your lot? If you have too much of the same inventory and things are moving slow, it could be time to send some to wholesale.
A big part of running a dealership is understanding your local market and the needs of your customers. Are buyers in your area more likely to buy pickup trucks or luxury vehicles? Understanding this can help you decide when to wholesale that trade-in.
When to Choose Wholesale
Wholesale sales can be an excellent strategy for quick turnover and cash flow management. At OPENLANE, we streamline the wholesale process, connecting you with a network of reliable buyers and platforms. This ensures your vehicles find the right buyers swiftly, even if they don’t meet retail market demands.
Dealers are always hoping to avoid the dreaded “lot rot”, where a vehicle will sit on a dealership lot for an extended period of time for one reason or another. If the vehicle is not getting the attention of your buyers, there’s a good chance OPENLANE’s nationwide network of buyers has a dealership out there looking for that exact vehicle.
How OPENLANE Makes Wholesale Easy
OPENLANE is dedicated to making wholesale easy so our dealers can be more successful. There’s no easier way to sell a vehicle wholesale than OPENLANE’s digital marketplace. It offers a quick, easy and efficient way for dealers to offload inventory and freshen up their lot, all while delivering tremendous financial results for sellers.
You can easily turn your car into cash fast, thanks to OPENLANE’s platform, designed to maximize your wholesale value. Selling a vehicle on OPENLANE is as easy as scheduling an inspection, choosing a sale type, and watching bidders race to purchase your vehicle. Sellers on OPENLANE also have the opportunity to launch Absolute Sale, a speedier and easier way to wholesale, cutting out negotiation while delivering even more value.
Ready to get Started?
Are you ready to experience the OPENLANE difference, and see how we are making wholesale easy for our dealers? There’s never been a better time to sell vehicles with OPENLANE. Sign up here today.