Kirk Rogers, head of Wholesale at McCarthy Auto Group, shares his insights on transforming wholesale from a break-even strategy into a profit center. He emphasizes the importance of careful appraisals, maintaining high engagement at auctions, and optimizing the reconditioning process. Kirk discusses the evolving landscape of wholesale, including the shift towards acquiring cars off the street and competing with giants like Carvana and Carmax. His hands-on approach and focus on detail highlight effective strategies for maximizing profits in the wholesale market.
Today I’m joined by Kirk Rogers, Wholesale Manager at McCarthy Auto Group.
We dig into why wholesale should be a strategic lever—not a last-resort escape hatch, how efficient transport unlocks massive savings, and the process McCarthy uses to eliminate the automotive retails biggest logistics bottleneck.
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Topics:
00:46 Current state of the wholesale market?
01:35 Key responsibilities at McCarthy Auto Group?
02:29 Biggest wholesale strategy challenge?
03:22 How has wholesale landscape changed?
04:39 Best acquisition and disposition tactics?
09:44 Key metrics for wholesale success?
18:51 Managing recon and logistics effectively?
23:36 Strategies to cut recon costs?
27:08 How to compete with industry giants?
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"Maybe it's a high line car. Maybe it's 150,000 dollars saved."
A high line car is a fancy or luxury car that costs a lot more than regular cars. They usually have better features and performance.
A high line car refers to a luxury or premium vehicle that typically comes with advanced features, superior performance, and a higher price point. These cars are often associated with brands like Mercedes-Benz, BMW, and Audi.
"We're probably gonna put that on our Hyundai lot. We're gonna probably send us the auction,"
Hyundai is a car company that makes many different types of vehicles. When they mention a 'Hyundai lot', they are talking about a place where they sell Hyundai cars.
Hyundai is a South Korean automotive manufacturer known for producing a range of vehicles, from economical cars to SUVs. Mentioning the 'Hyundai lot' suggests a dealership that specializes in Hyundai vehicles.
"...do I sell the cars at MMR or above, which I typically sell them above MMR?"
MMR is a report that shows how much used cars are selling for at auctions. It helps people know what a fair price is when buying or selling a car.
MMR stands for Manheim Market Report, which provides pricing data for used cars based on actual auction sales. It helps dealers and buyers understand the current market value of vehicles.
"...because of issues with you could have salvage title, could have frame damage, something like that."
A salvage title means the car was in a bad accident or had serious damage, and the insurance company decided it wasn't worth fixing. This can make it harder to sell or insure the car.
A salvage title is given to a vehicle that has been damaged and deemed a total loss by an insurance company. This typically affects the car's resale value and insurability.
"...could have frame damage, something like that."
Frame damage means the main structure of the car is bent or broken, usually from an accident. This can make the car unsafe and harder to fix, which lowers its value.
Frame damage refers to structural damage to a vehicle's frame, which can affect its safety and performance. Cars with frame damage may require extensive repairs and can be difficult to sell.
"hey, I've got a couple of Silverados to the Chevy store, one of our Chevy stores and they might give them an old-age RAM pickup in exchange,"
The Chevrolet Silverado is a big truck that's popular for carrying heavy loads and is often used by people who need a reliable vehicle for work or family.
The Chevrolet Silverado is a full-size pickup truck known for its durability and versatility, often used for both work and personal transportation.
"an old-age RAM pickup in exchange, something they might do a little better with."
RAM pickups are tough trucks that can carry heavy things and are often used for work or outdoor activities.
RAM pickups are known for their strong performance and towing capacity, making them a popular choice among truck enthusiasts and those needing a workhorse vehicle.
"... Chevy stores and they might give them an old-age RAM pickup in exchange, something they might do a lit..."
The Dodge Ram is a big truck that people often use for work or to carry heavy things. It's popular because it's strong, can pull trailers, and is comfortable to drive, making it a good choice for many drivers.
The Dodge Ram is a full-size pickup truck known for its robust performance, versatility, and comfort. It has gained a strong following among both work-oriented users and those seeking a reliable vehicle for everyday use. The Ram's significance in discussions often revolves around its capability, towing capacity, and advancements in technology and design over the years.
"but say we did have a vehicle like a Highlander or a 400 that we'd kept for a little long and we wanted to, we'd sell it to them,"
The Toyota Highlander is a larger vehicle that can carry more people and stuff, which is good for families or trips.
The Toyota Highlander is a midsize SUV that offers a spacious interior and a comfortable ride, making it a great option for families and those needing extra cargo space.
"and recently I've been using a company called Auto Haulers Exchange, who's been a great asset. I still put in the cost, I still, you know, post the car myself, which I've done before, which I love doing."
Auto Haulers Exchange is a company that helps people move cars from one place to another. They make it easier to get cars delivered on time.
Auto Haulers Exchange is a company that specializes in vehicle transportation services, helping individuals and businesses transport cars efficiently and reliably.
"But they do a great job of getting the cars to me within the timeframe I need. You know, especially with Smart Auction, you have a certain amount of time to arbitrate a vehicle."
Smart Auction is an online platform where people can bid on cars to buy them. It's like an auction where you can place bids to try to get the best price.
Smart Auction is a platform that allows users to buy and sell vehicles through an online auction system, often used by dealerships and auto brokers to facilitate vehicle transactions.
"...I gotta get this car to, you know, for instance, I got a Corvette right now. We still, we're trying to get to Arkansas..."
The Chevrolet Corvette is a fast sports car that many people love for its speed and design. It's been around for a long time and is very popular in car culture.
The Chevrolet Corvette is a high-performance sports car known for its powerful engines and distinctive styling. It has been an iconic American sports car since its introduction in 1953.
"...one thing we have done is we try to maybe use some aftermarket parts instead of OEM sometimes to save on costs. You know, we do everything we can..."
Aftermarket parts are car parts made by other companies, not the original maker of the car. They can be cheaper and used to fix or improve your vehicle.
Aftermarket parts are components made by companies other than the original manufacturer (OEM) of the vehicle. They can be used for repairs or upgrades and often provide a cost-effective alternative to OEM parts.
"...instead of OEM sometimes to save on costs. You know, we do everything we can as far as working with the technician."
OEM means Original Equipment Manufacturer, which is the company that made the original parts for your car. These parts usually fit perfectly but can cost more.
OEM stands for Original Equipment Manufacturer, which refers to parts made by the same company that built the car. These parts are typically more expensive but are designed to fit and function exactly like the original components.
"How can you compete with the Carvanas and Carmaxes? What's your strategy? I mean, these behemoths, they have, arguably, superior economics because of their scale."
Carvana is a company where you can buy or sell cars online. They make it easy by letting you shop for cars on their website and even deliver them to your home.
Carvana is an online used car retailer that allows customers to buy, sell, or trade in vehicles through a digital platform. They are known for their unique car vending machines and home delivery service, which disrupt traditional car buying methods.
"How can you compete with the Carvanas and Carmaxes? What's your strategy? I mean, these behemoths, they have, arguably, superior economics because of their scale."
CarMax is a store where you can buy used cars without having to negotiate prices. They have a wide selection and let you return the car within a week if you change your mind.
CarMax is a leading used car retailer in the United States, known for its no-haggle pricing and large inventory of vehicles. They provide a straightforward buying experience and offer a 7-day return policy on purchases.
"Because that's a blind bid. Have they seen the damage on the fender?"
A blind bid is when someone makes an offer without knowing all the details about what they're bidding on. For cars, it means they haven't looked at the car to see if there are any problems.
A blind bid is an offer made without the bidder having full knowledge of the item's condition or value. In the context of car sales, it means the buyer makes an offer without inspecting the vehicle first.
"Have they seen the damage on the fender? Have they seen the tires?"
A fender is the part of a car that covers the wheel. If it's damaged, it can affect how the car looks and functions.
The fender is the part of a car that surrounds the wheel well. It helps protect the vehicle from debris and can be a critical area for bodywork if damaged.
"Have they seen the crack windshield? I'm here because based off those factors,"
The windshield is the front glass of a car that helps you see out. If it's cracked, it can make it hard to see and might need fixing.
The windshield is the front window of a vehicle, providing visibility and protection from the elements. A crack in the windshield can impair vision and may need to be repaired or replaced.
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