Ask any dealer what their biggest expense is after payroll and inventory, and they will all say the same thing: Advertising.
Dealers pour thousands of dollars every month into Google Ads, Facebook clicks, and third-party lead aggregators. And what do you get in return? A name, an email address, and—if you’re lucky—a 5% connection rate.
I want to propose a radical shift in thinking. What if you stopped viewing an “Auction” as a way to dispose of bad cars, and started viewing it as the most effective Marketing Campaign you can run?
At Selling Lane, our enterprise package is around $999 a month. To a small dealer, that might sound like a software expense. But compared to an ad budget, it is the cheapest customer acquisition tool on the planet.
Here is why running two public auctions a month is better than any billboard you will ever buy.
1. It Solves the “Traffic” Problem
The hardest part of the car business is getting a physical body onto your lot. “Sales” don’t drive traffic. “Events” drive traffic.
When you advertise a “Public Wholesale Auction” on a Saturday morning, you aren’t begging people to come look at a Camry. You are inviting them to an event. You are offering them a chance to “beat the dealer” and get a deal. Curiosity brings them in. The cars keep them there.
2. A “Bidder” is Worth 10x More Than a “Lead”
Internet leads are flimsy. They are often tire-kickers clicking buttons at 2 AM.
Compare that to an Auction Registrant. To register for your Selling Lane auction, a customer provides:
Their Name & Phone Number.
Their Driver’s License.
A Credit Card on File.
They aren’t just browsing; they have financially committed to the possibility of buying a car today. If you get 50 registrations for your Saturday sale, you just acquired 50 High-Intent Leads for your database. Even if they don’t buy under the hammer, you know they are qualified and ready.
3. The Software Pays for Itself (The Buyer Fee Strategy)
Ad budgets are a sunk cost. You spend the money, and it’s gone. Your auction software, however, can be self-funding.
When you run your own private marketplace, you set the rules. That includes the Buyer Premium.
Scenario: You sell 4 cars in your auction.
Fee: You charge a $250 “Auction Fee” to the buyer.
Result: You just generated $1,000 in fee revenue.
Your $999/mo software bill is now effectively $0. You have covered your overhead with just 4 sales, and every car after that is pure profit. Try getting Google Ads to pay you back for the clicks.
4. The “Waive the Fee” Closing Tool
Let’s say you don’t want to charge fees. That gives you an even more powerful weapon: Psychological Leverage.
We all know buyers love a “deal.” If a customer is on the fence about a car in the lane, your sales manager can step in with the ultimate closer: “Tell you what. If you buy it right now, I’ll waive the $300 auction fee.”
You just gave the customer a $300 discount without actually lowering the price of the car. It is a powerful incentive that closes deals.
5. You Own the Data
When you consign a car to Manheim or Adesa, they keep the bidder data. You just get a check (minus high fees). When you run your own White Label Auction on Selling Lane, you own the data.
You build a list of local buyers that belongs to you. Next month, when you have fresh inventory, you don’t have to pay for ads. You just email your list of 500 past bidders.
The Bottom Line
Stop looking at your software bill as an “expense.” If it brings people to your lot, captures their credit card info, and helps you close deals, it isn’t software. It’s Marketing.
And at $999/mo, it’s a whole lot cheaper than a billboard.
