At NADA 2020 in sunny Las Vegas, host Jim Fitzpatrick was joined on the CBT Stage by Derek Hansen, Vice President of Digital Inventory Solutions, Manheim.
VIDEO TRANSCRIPT:
Jim Fitzpatrick: Manheim Express has been out now out in the market for around a year and a half. How has the app evolved in that amount of time and what’s the dealer reception been to it?
Derek Hansen: The reception has been fantastic and we are seeing such momentum with Manheim Express and Manheim Digital overall.
Jim Fitzpatrick: Yeah.
Derek Hansen: It’s really a piece of that broader portfolio and really bringing the power of Manheim to the marketplace. To dealers where they operate and that they can tap into the audience, the eyeballs, the confidence of Manheim, all on their lot with their vehicles.
Derek Hansen: Manheim Express was launched, as you mentioned, just over a year ago, and it was launched to bring the power of Manheim to them. Since that time, we continued to push forward and the response has been fantastic. We’re seeing great momentum and we’re excited to keep pushing in 2020.
Jim Fitzpatrick: Good. What are some of the new enhancements to the app?
Derek Hansen: Yeah, so this year we’re excited. In the booth, we’re really pushing forward to continue to drive that confidence. And it’s so foundational to everything we do digitally. Dealers love the 360 technology we have on the exterior of the vehicle.
Jim Fitzpatrick: Okay.
Derek Hansen: The ability to tag damage items. This year, we’ve added audio video tags, so now that can also incorporate engine sound, we can tag underneath the vehicle and get full undercarriage visibility.
Jim Fitzpatrick: Unbelievable. Wow.
Derek Hansen: So, that is a great advancement pushing forward. And we’re also bringing that 360 technology that existed outside the vehicle to the interior, which will be again, an industry first in wholesale. And the dealer response has been fantastic. They’re excited, particularly with that engine noise and that audio video tag. The reception is so clear.
Jim Fitzpatrick: Sure.
Derek Hansen: A discerning ear can really start to understand more mechanically what’s going on with that car and start to assess it in a way that was challenging before.
Jim Fitzpatrick: That’s great.
Derek Hansen: So we’re really excited and we’re seeing great reception.
Jim Fitzpatrick: Wow. The future is here, isn’t it?
Derek Hansen: It really is and it’s fantastic and exciting to be a part of that future.
Jim Fitzpatrick: That’s pretty cool. And in what ways will the audio and video tags benefit the dealers?
Derek Hansen: Yeah. It’s so critical for a dealer that they can trust what they’re seeing online.
Jim Fitzpatrick: Right.
Derek Hansen: Right? And we made it easy for dealers to list cars, and giving that 360, bringing us a step forward.
Jim Fitzpatrick: Yeah.
Derek Hansen: And with the engine noise, it’s now even one step beyond that, that the confidence now is starting to rival what they see when they’re at a physical auction. And again, just empowering them to make better decisions, drive better bidding activity, and for our sellers to see that in the engagement, in the retention that they’re receiving on the vehicles.
Jim Fitzpatrick: Talk to us about the 360, the interior.
Derek Hansen: Yeah, so the interior 360, now we have that same ability to show so that dealers can swivel through the entire inside of the car. So they’ll know what’s really a condition of that interior.
Jim Fitzpatrick: Right.
Derek Hansen: What options are truly present in the vehicle? Is there any aftermarket items?
Jim Fitzpatrick: Yeah.
Derek Hansen: Giving them a full visibility of the vehicle, not just standard stills that were previously a part of the package.
Jim Fitzpatrick: That’s right. That’s right. That’s a huge differentiator, right? In the marketplace?
Derek Hansen: It really is. And again, the idea is make sure there are no surprises.
Jim Fitzpatrick: Right.
Derek Hansen: Make sure there’s nothing that the dealer didn’t see in incorporating it into their bidding decision as they were assessing the vehicle. Manheim Express has continued to push the envelope and provide the premier experience within the wholesale industry.
Jim Fitzpatrick: For sure. What are dealers reactions to the new enhancements?
Derek Hansen: Yeah, and we’re seeing it in the activity. We’ve had over 7000 dealers log on, list, buy cars.
Jim Fitzpatrick: Wow.
Derek Hansen: Volumes continue to grow dramatically. We’re seeing record activity as a part of the overall Manheim experience and we’re seeing that across Manheim Digital as well as we want to continue to drive that confidence. Our volumes have been up year over year. We’re up 40% year over year from what we saw last year.
Jim Fitzpatrick: Oh my gosh, that’s incredible.
Derek Hansen: And we don’t see the momentum slowing at all. So the dealer response has been very positive and we’re excited to continue to push the envelope as far as making the experience as easy and as seamless and cost efficient as possible.
Jim Fitzpatrick: That’s fantastic.
Derek Hansen: Yeah.
Jim Fitzpatrick: So apps have really changed how dealers wholesale, obviously. What are some of the biggest benefits that you’ve heard dealers talk about?
Derek Hansen: Yeah, there’s a common theme at NADA is that retail is tough. The margins are being compressed, and it’s something we’ve been seeing over the last couple of years as you and I have been having these conversations. And what we hear from dealers is they love the ability to list the car from their lot. They don’t have to transport; they cut down on their holding costs; and Manheim will come and do everything for them.
Jim Fitzpatrick: Wow.
Derek Hansen: So less expense exerted against the vehicles. You think about the Manheim Express Concierge team being their partner as they manage their wholesale process.
Jim Fitzpatrick: Right.
Derek Hansen: So the dealer response is, “Hey, you’re helping me manage my wholesale business in a way that’s more profitable than ever before.”
Jim Fitzpatrick: That’s right.
Derek Hansen: And that falls straight to the bottom lines.
Jim Fitzpatrick: That’s right.
Derek Hansen: And is helping me drive a more profitable dealership.
Jim Fitzpatrick: Which is what it’s all about right now. Dealers, and I’ve said this a hundred times, I think just in the last week, it’s all about how a dealer, how well a dealer can be in the efficiency of running the dealership. Right?
Derek Hansen: That’s exactly right.
Jim Fitzpatrick: It’s all about efficiency.
Derek Hansen: That’s exactly right. And with technology that exists today, if you’re not embracing digital, you’re missing out.
Jim Fitzpatrick: That’s right.
Derek Hansen: Fundamentally, you’re not operating as efficiently as you could.
Jim Fitzpatrick: That’s right.
Derek Hansen: You’re not seeing all the buyers and sellers that you could be seeing. If you’re a buyer, more inventory in the market; if you’re a seller, accessing those buyers in the marketplace. So it really is critical to driving a profitable dealership and we’re excited to be a part of that.
Jim Fitzpatrick: Yeah. For sure. For dealers that are watching right now, maybe you’re watching because you weren’t able to make it out to NADA 2020 in Vegas. Some of the things Derek Hansen is talking about are really exciting. You got to check it out. Go to Manheim. Is it manheim.com that you should go to?
Derek Hansen: You can certainly go to Manheim.com or ManheimExpress.com.
Jim Fitzpatrick: Okay.
Derek Hansen: And there’s one other exciting piece I wanted to share, Jim, as I’m here.
Jim Fitzpatrick: Yeah, let’s talk about it.
Derek Hansen: And that’s regarding a new offering that’s going to be coming soon. We just announced literally today is Express Direct.
Jim Fitzpatrick: Okay.
Derek Hansen: So what that is, we know that there are certain population of vehicles that dealers trade amongst themselves outside of the auction marketplace. Totally get it. That’s been around as long as dealers have been around.
Jim Fitzpatrick: Yeah.
Derek Hansen: But we want to continue to make their life easier. So even for those vehicles were announced, we’re delivering a functionality that’ll allow them to scan the vehicle, enter the email, and send it to their buying dealer with the price. That will show up in the buying dealers app.
Jim Fitzpatrick: Wow.
Derek Hansen: They can accept or reject that vehicle.
Jim Fitzpatrick: That’s fantastic.
Derek Hansen: Again, Manheim is known for trust. We manage millions of titles collecting funds. That’s core DNA to Manheim.
Jim Fitzpatrick: That’s fantastic.
Derek Hansen: And we’re bringing that to dealers in a more efficient way than ever before with Express Direct. So, excited to share that. It’ll be in market here in the next six or eight weeks-
Jim Fitzpatrick: For sure.
Derek Hansen: And we’ll be piloting that throughout the year.
Jim Fitzpatrick: I’ll have to have you back on the show to talk more about that once it’s rolled out. But again, there’s one more reason to go to Manheim.com and learn more about these things. If you’re not in the digital space, if you’re not technology, using technology to your advantage to run your dealership, especially in the used car division. You know, you’re making a big mistake.
Derek Hansen: That’s right.
Jim Fitzpatrick: And in talks it’s obviously on the forefront of all things automotive. It’s been helping dealers for 50 years or more. So thank you so much. I really appreciate it.
Derek Hansen: Appreciate the time.
Jim Fitzpatrick: Yeah, absolutely.
Derek Hansen: Thank you very much. Have a great day.
