DealerStrip, a new startup company, is adding a new way to manage their online used vehicle sourcing. Similar to how Swap Motors and other companies to it, DealerStrip is a consumer to dealer auction platform.
Aaron Fruge, DealerStrip executive vice president, said the company is a listing service where consumers can post vehicles for sale for no charge, inventory for which only subscribing dealers can bid.
Launched in the third quarter of 2018, DealerStrip already has committed subscribers, but Fruge declined to be specific. He did say preliminary performance metrics are encouraging.
“Our one-year trajectory is 3 to-5-million consumer sessions a month and we’re expecting about 3,000 dealers to subscribe to DealerStrip, and we look for a 10- percent market penetration,” Fruge said. “Already in just our first couple of months, we have 3 million vehicles listed. We expect to eclipse 10 million active listings by the end of next year.”
Consumers post to DealerStrip as they might a traditional retail ad for their vehicle. Dealers then contact advertising consumers for information and consummate the transaction. DealerStrip takes no part in facilitating a deal, but integration with WeGoLook.com offers remote inspection services.
Another alternative vehicle sourcing model, Swap Motors, is a private-party inventory source, primarily for independent dealers. Though initially launched in 2016 as a peer-to-peer site for consumers to list, sell, and buy vehicles, Swap Motors quickly drew auto dealer interest.
To date, 350 Chicago-area dealers are registered users, using the service at least once a month, reported chief executive officer Alex Johnson.
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