What is in this article?:
Price transaction transparency is why TrueCar and others are making fortunes soothing retail buyers’ fears of paying too much for vehicles. Why so many dealers don’t take advantage of the same sort of price information on the wholesale side is hard to understand.
Every transaction between a buyer and seller has pitted the interest of one against the other. From the cave man on, win-win is seldom the actual result.
The lack of transaction history, or what the last buyer paid, historically has put the buyer at a disadvantage compared to the seller. The consolidation of wholesale platforms, the transparency and ease of access of raw market data, especially in the automotive remarketing industry, should be a game-change event.
However, every day we see dealers and their buyers ignoring this information, because they won’t, can’t or don’t know how to, look at the free price data available to them.
These same people probably would not dream of investing their retirement portfolio based only on what they read in a 2-week-old USA Today and then put in a “market” order committing to buy at whatever the current asking price is. Only the most novice investor wouldn’t look at price charts, trends and volume before he pulls the trigger.
Yet every day we see this happen in the wholesale car market, and it costs those dealers and every other dealer a lot of money. Price transaction transparency is why TrueCar, AutoTrader, Cars.com and others are making fortunes soothing retail buyers’ fears of paying too much for vehicles.
Why so many dealers don’t take advantage of the same sort of price information on the wholesale side is hard to understand. The information they need is available, it’s free and it doesn’t take long to understand it.