Eugene Gorin from Indy Auto Man – ACV Auctions Testimonial

My business partner and I we started
this dealership back in 2008. We started with about two cars. We’ve currently got 300 on the lot and we sell roughly 150 per month. A lot of the volume that we did has
been driven from Internet sales and we’ve targeted our audience based on their buying habits. We have physical sales for years. I mean since 0 8 we’ve been doing physical sales and it wasn’t till 2016 that we started to even dabble in you know ACV. You know online auctions, smart auction you know stuff like
that. And I had my doubts and had my reservations because you know my God not only for shipping
like it’s come from California. I don’t have time for that. Oh my God what am I going to do if the car gets in it’s got a bad motor
do I take it to how do I fix it. What’s the arbitration. You know? But as we started doing it more and more and more it just pretty much ironed itself out. We just put some really simple
processes in place some really easy criteria. And I mean we just followed them and it works every time. The problem with physical auctions
too is you have to know what to look for, you have to know who to buy from, you have to know what cars have what
issues, you have to know which sellers are
going to purposely try to you know take advantage of you. We were averaging 20 percent more profit on our online purchases than we were the auction. And a lot of that came down to recon and the auction fees. You buy a $20,000 car at Adesa your 450 bucks in auction fees. Buy a $20,000 at Manheim you’re 500 bucks and an auction fee you know. And then he PSI it, because you never buy a car without
PSI. There’s another 150 bucks and you transport it so you know before you even pack the car you’re $800 in fees. Just for driving three and a half hours you know in the
freezing cold to drive back three and a half hours. Especially with I mean margin
compressions everyone feels it. So now you’re competing with not only the people on your
street not only the people in your town but the people in your state and the people in the country. That really limits your margin of error. And with us having more access, more transparency, we’re able to still be profitable at even a reduced margin.

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