In the past year, the automotive industry has taken a significant hit unlike any we’ve seen for a few decades. With the weak economy and buyer confidence low, new car sales plummeted. Many dealerships experienced a surge during the recent “Cash for Clunkers” program, but since the program has ended and the economy is still in recession, dealerships will likely return to relying once again on the bread and butter that has sustained them during these tough economic times—used cars.

Thankfully, due to advances in technology within the automotive industry, buying used cars is now a more seamless and efficient process than it has ever been and an effective way to increase sales and retain customer loyalty during the downturn. A decade ago, the concept of an online wholesale auto auction was in its infancy and transacting on the internet was completely foreign to most businesses, let alone most automotive dealerships. As the automobile industry has embraced what technology and the internet have to offer, however, online auto auctions for wholesale vehicles are increasingly becoming a crucial part of most dealers’ everyday business. No longer a novelty, online auctions consistently deliver benefits to buyers and sellers alike.

As dealers have become more familiar with the internet and are adopting online auctions to complement existing procurement methods, the industry is witnessing a remarkable shift in purchasing patterns among dealers across the country. Although physical auctions still dominate the remarketing business, online auctions are becoming vital to dealer operations, primarily because buying online provides a much larger inventory selection to choose from and it saves time and money. There’s no longer any need to leave the dealership when the freshest inventory from a wide variety of sellers is available online.

Selling online has also become a boon for dealers. For many dealers, selling their own used inventory online is a quick and easy way to offload vehicles without the hassle of transporting them to physical auctions. Dealers can also build their own dealer networks through online auctions, providing even more options for buying and selling specific makes and models of used vehicles.

Online auctions have proven to offer dealers and consignors limitless options and inventory for faster sales, higher profits, and greater savings. The entire auto industry has evolved and now it is more important than ever to remain adaptable. Finding new ways to incorporate efficiency into the buying and selling process, such as adopting online auctions into your dealerships can help dealers remain strong and agile in this ever changing industry.

Andrew Iorgulescu is vice president of business development at OPENLANE. He can be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .