AUTOMOTIVE INSIGHT: Dealers Find Internet is Great Whole-Tail Tool

February 27th, 2008 at 6:15pm

As heard on
WWJ Newsradio 950

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Dealers are finding they can use the internet to get the maximum price for the cars they’re selling.

Car dealers always have cars on their lots that are hard to sell. For example, having a convertible on your lot in the middle of winter in the Snow Belt can be hard to move. But in the Sun Belt that convertible can be in high demand, even in the middle of winter.

So dealers are using the internet to figure out how they can sell a car in low demand to a dealer in another region of the country where demand is higher. In fact, they’ve come up with a new name for that. They call it whole-tail.

What it means is, for the dealer who is selling the car, it’s retail. But for the dealer who is buying that car, it’s wholesale. And thanks to the internet, whole-tailing is becoming a new business procedure for car dealers that helps them move the metal.


One Comment to “AUTOMOTIVE INSIGHT: Dealers Find Internet is Great Whole-Tail Tool”

  1. Tom Martin Says:

    I agree that dealers are learning how to use the internet, but they got a way to go. Most dealers just list their inventory.

    What Carmax does well, that others don’t do, is find a way to show people similar cars to what one is looking for.

    Ask for a certain car at Carmax also gives a listing of similar cars. That doesn’t happen with Autotrader, Cars, or most dealers sites.

    I bought a Pontiac 6000 STE in 1989 and an Eagle Vision in 1996 that I stumbled across in used car lots that I would have never found on internet. I loved both cars and was looking for a Honda Accord in both cases.