Online vs UPSTREAM: Why not all online remarketing channels are equal

INSIGHT | 24 NOV, 2021

At ADESA UK we talk a lot about the benefits of upstream, but what do we actually mean? 

While the pandemic accelerated the long-anticipated shift from physical auctions to digital remarketing, not all online channels are equal. 

While the traditional auction houses now offer online platforms, they tend to be a bolt-on to their existing brick and mortar operations, with vehicles presented for sale downstream after accruing costs and depreciation. 

In contrast, our dealer partners’ digital journey begins and ends upstream. Trade-outs are offered for sale as soon as dealers upload them to our platform and are available for retailers to buy 24/7. 

This is the smart approach to digital remarketing, removing unnecessary costs and wasted time from the equation. 

ADESA UK has only ever operated upstream – without the legacy encumbrances associated with running physical auction halls – which is why we call our remarketing platform UPSTREAM. 

Online remarketing 

This is the typical downstream scenario for a vehicle being sold online: 

  • Trade-out is transported to the auction location 
  • A chargeable inspection is carried out 
  • The vehicle sits in a compound until the next sale, accruing storage charges  
  • On auction day it enters the sales lane and bidding starts in the hall and online 
  • If sold, the vehicle is transported once again to its buyer 
  • An unsold car goes back into storage, attaching more costs and depreciation until the next sale day comes around 

 Sounds familiar? That’s because it’s the same process that’s operated for decades, only now online buyers can mingle virtually with bidders in the hall. 

 Upstream remarketing 

These are the typical scenarios for a vehicle being sold upstream by ADESA UK: 

  • Dealers are given the option of self-inspecting cars using our award-winning, app-based, AI-powered ADESA Intelligent Vehicle Inspection (IVI) tool 
  • A transparent AI-generated condition report, with costings, along with captured images, is uploaded within minutes of the inspection to our UPSTREAM platform and online bidding begins 
  • Meanwhile, the dealer can continue to offer the vehicle for sale on their forecourt, maximising their sales opportunities 
  • Once sold on UPSTREAM dealers are paid the next day, often receiving cash in the bank while the car is still in their possession 
  • The vehicle is then collected and transported to its new owner, just one vehicle movement, reducing its carbon footprint. 

ADESA UK – Accelerating Change for dealers with smart digital remarketing solutions. 

Use our calculator to see how IVI can reduce your Total Cost of Disposal. 

Click here to discover how ADESA UK can help with your remarketing needs. 

 

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