After aggressive expansion in the eastern U.S., Cox Automotive has enabled sellers in California to join in the Upside wholesale experience. The expansion brings on sellers throughout California, making it easier for buyers in the western half of the country to find attractive inventory closer to home in the Upside Direct sale. More than 15,500 vehicles have sold through Upside Direct so far after generating over 350,000 bids.
With Upside, Cox Automotive has redefined the wholesale process by introducing a data-driven approach that combines the power of the best brands in the industry. Together, Kelley Blue Book Instant Cash Offer, vAuto and the Manheim Marketplace help dealers take in vehicles at the right price while promising a profitable exit for wholesale units. Sellers have received over $14 million in profit-sharing above the guaranteed minimum since Upside launched in May 2022.
“Upside provides a winning combination for every dealer along the transaction,” explains Derek Hansen, vice president of Operations, Inventory Management Solutions, at Cox Automotive. “Sellers tap into a one-of-kind wholesale experience that helps them maximize returns on every vehicle, and buyers get access to in-demand inventory while reducing risks. Our West Coast customers have been asking for this product since its launch, and we’re excited to be able to deliver.”
Upside: Benefits for Sellers
Prior to Upside, dealers had to shoulder the risk on trades, but now they have a way to generate profits in wholesale or retail, so they can confidently take in more trades and close more retail deals. Dealers with a Kelley Blue Book Instant Cash Offer Buying Center who added Upside were able to close between 20% to 30% more deals on their Instant Cash Offer leads.
A longtime believer that wholesale can be profitable, Deepaul Gill, Used Car Manager for Haddad Dodge Kia, was among the first sellers to sign up in California. “I’m very excited about the Upside program. We’ve been using the Kelley Blue Book Instant Cash Offer program for a while, and I have wanted to buy all of those cars, but that hasn’t always been a smart decision. The fact that the Upside guarantee goes hand in hand with the offers is really appealing. Wholesale is a side of the business that a lot of dealers don’t realize they can make money in, but I know that there’s untapped revenue.”
Starting with a Kelley Blue Book Instant Cash Offer, Upside promises sellers an amount above that offer if they wholesale, so there’s no chance of sellers losing money on the deal. All vehicles sell on the first run for at least the amount of the Upside minimum. And better yet—when a vehicle sells for more—sellers keep the lion's share of the upside.
Upside Direct: Benefits for Buyers
Now that thousands of West Coast sellers can join Upside, buyers from across the country will have access to even more vehicles—including those highly sought-after fresh trades—in the Upside Direct sale. During the sale, every vehicle starts with an initial bid that is 50% of Manheim Market Report, and buyers can have confidence that even one bid wins a vehicle, since 100% of the units offered will sell. That means that buyers may find great deals that will help boost their inventory and profitability.
Shawn Hack, general manager of Payless Car Rentals and South West Leasing & Sales in San Diego, has purchased from an Upside sale and is looking forward to having Upside inventory available closer to home. He particularly likes the vehicle condition reports, as well as the confidence that every vehicle in each Upside Direct sale will sell:
"We do a lot of diligence on the cars we're looking to buy, which is why the disclosures in Upside are the biggest thing to us," he said. "We can easily see things for ourselves, so we know that we won't be surprised when the vehicle gets here. It's also nice to know that sellers are serious. There's a good chance we'll end up buying something rather than investing all that time up front and then have the car not actually sell."
Every vehicle listed has a clear condition report, complete with industry-leading 360 imaging. If the vehicle purchased doesn’t match the condition report, buyers can easily return it. In addition to Upside Direct's buyer-friendly policies, eligible vehicles come with complimentary DealShield 21-day return guarantee.
In coming months, Upside will continue to expand into more U.S. markets where demand is high for sellers. Dealers interested in learning more about Upside can visit TakeTheUpside.com or reach out to their Cox Automotive representative for more information.
Originally posted on Auto Dealer Today