ATLANTA – January 25, 2023 – Less than one year after the first Upside Direct sale launched, Cox Automotive remains confident in how this new way to wholesale can deliver profitability to sellers in any market—and the data has proven that. With 30+ Upside Direct sales in the book, Upside has given over four million dollars in profit sharing back to sellers, with the average amount per vehicle topping $600. And now, sellers in three new markets (Milwaukee, Wis.; Cleveland, Ohio; and the Carolinas) can have their vehicles sold in the Upside Direct Marketplace.
“In this unpredictable market, dealers need to know that they have a profitable exit on every trade-in,” said Derek Hansen, vice president of operations, Inventory Management Solutions at Cox Automotive. “With Upside, we have connected some of Cox Automotive’s most powerful used vehicle solutions—Kelley Blue Book Instant Cash Offer, vAuto and Manheim—to help dealers acquire vehicles at the right price and retail or wholesale them profitably no matter what the market is doing.”
Across the first 30 sales, more than 6,000 vehicles have sold through Upside Direct after generating ~330,000 VDP views and over 140,000 bids. Overall, even in the declining wholesale market of 2022, Upside delivered an average of 98% of MMR, with 37% selling over MMR since the beginning of 2023. In fact, some vehicles have sold for up to 141% of MMR in recent sales, a notable achievement given today’s fast-moving market.
How Upside Works:
Since how profitably a dealer can exit a vehicle depends greatly on how much they pay for it, the Upside experience starts at the point of appraisal with the industry’s leading trade-in tool: Kelley Blue Book® Instant Cash Offer. Used in around 43% of every trade-in transaction in the United States, the Instant Cash Offer creates a trusted and transparent experience between dealers and consumers.
Once the offer is generated, dealers will see their exit options on their vAuto appraisal page—including the “Upside Minimum,” which is the guaranteed amount they will receive if they choose to wholesale that vehicle in the Upside Direct marketplace. The vehicle will then be inspected at the dealer’s lot by a Manheim inspector and listed in a weekend Upside Direct sale. If the vehicle sells for more than the Upside Minimum, Cox Automotive gives the lion’s share of the profits back to the seller; if it sells for less, the dealer still gets the guaranteed amount.
As Upside Direct is a part of the Manheim marketplace, inventory can seamlessly flow from other channels within Manheim’s digital marketplace. This gives dealers the flexibility and optionality in how to list their inventory—perhaps testing it in the open marketplace while they attempt to retail it before moving into the unique Upside Direct experience.
“Especially in a rapidly depreciating market, selling inventory quickly is key to coming out ahead,” added Connie Suozzo, vice president of Manheim Digital. “However, we recognize that sometimes dealers want a little more time to test the waters, which is why we’re committed to meeting their individual needs by making it easy for them to move inventory between wholesale channels.”
However, with the average profit share being high, sellers have more reasons than ever to send their vehicles straight to Upside Direct. The unique combination of low starting bids (at 50% of MMR), guarantee that every vehicle with at least one bid will sell and confidence that Manheim stands behind its condition reports with the industry’s leading purchase protection solution, has proven to be just as good for sellers as it is for buyers.
Upside to Continue Expanding in 2023:
Upside is currently available for sellers all along the I-75 corridor from Atlanta to Detroit and is currently expanding out from that area, including these three new markets. Cox Automotive plans to continue adding markets throughout the year to bring the benefits of Upside to more sellers, faster in 2023. Dealers interested in learning more about Upside should check out TakeTheUpside.com, visit the Cox Automotive booth at the NADA Convention in Dallas or reach out to their rep.
About Cox Automotive
Cox Automotive is the world’s largest automotive services and technology provider. Fueled by the largest breadth of first-party data fed by 2.3 billion online interactions a year, Cox Automotive tailors leading solutions for car shoppers, automakers, dealers, retailers, lenders and fleet owners. The company has 25,000+ employees on five continents and a family of trusted brands that includes Autotrader®, Dealertrack®, Kelley Blue Book®, Manheim®, NextGear Capital™ and vAuto®. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately-owned, Atlanta-based company with $21 billion in revenue. Visit coxautoinc.com or connect via @CoxAutomotive on Twitter, CoxAutoInc on Facebook or Cox-Automotive-Inc on LinkedIn.
Media Contact:
Julie Shipp
Senior Manager, Public Relations | Cox Automotive
Julie.Shipp@coxautoinc.com | 404.558.7837