A new wholesale trading platform called ReinventRV allows dealers to buy and sell vehicles at the click of a button.
In partnership with Level 5, a technology company known for its artificial intelligence platform Compass, the Reinvent RV program functions as an online auction to facilitate easy dealer engagements in real-time. The goal is smooth B-to-B transactions, said Todd Wilkins, Level 5’s chief business officer and ReinventRV co-founder.
“You find the data, click, purchase and transfer,” Wilkins said.
Dealers can post their inventory on the ReinventRV platform directly from a dealer management system (DMS). Other dealers then can access the listings, which are given a wholesale value using the program’s real-time data.
“Sometimes in markets, technology can change the behavior for better and lower costs,” Wilkins said. “And the benefit of wholesale is there really isn’t an RV auction for the market, just smaller auctions that sell RVs. There isn’t real-time data to put wholesale value on transactions in the marketplace, to effectively convert them.”
The platform features a self-correcting system that adjusts aged inventory.
“Inventory is a problem today, so it’s a great time for a platform to come out,” Wilkins said. “We’re talking how the platform can be the [dealer’s] inventory system and allow for new trades in the future.”
Joining the platform and listing inventory is free. When a vehicle is sold, a $500 business transaction fee will apply. Buyers cover $325 and sellers cover $175. The program uses a secure FDIC banking platform and real-time ACH payments.
“They’re controlling the cost,” Wilkins said. “It’s not some auctioneer representative.”
Sourcing an RV has not historically been the easiest process. It often requires dealers to spend significant time and money seeking leads.
That conversation usually means getting fellow dealers on the phone, which can be difficult in a growing industry with overworked staff, Wilkins said. ReinventRV will give dealers the opportunity to establish DMS connectivity without needing to talk to someone.
“As a business, we looked at the wholesale vehicle industry and believe it could benefit from technology and a digital platform,” ReinventAuctions CEO Paul Jones said. “We focused on the RV industry because business is booming through the pandemic. Tails are tight and dealers are looking for inventory.”
Wilkins co-founded ReinventRV with Dean Stojka, both former automotive dealers who considered margin compression and having a competitive edge when buying from an auction. Stojka noted that the car business is familiar with the platform’s concept. More than 35 percent of automobiles are bought virtually, Wilkins said.
“We wanted to bring to the RV what exists right now in cars,” Stojka said. “It’s a better path to improve cash flow to dealers. In the car business, [the platform] is a way of life to manage cash, get inventory and relieve themselves of inventory.”
Dealers can access the platform at reinventrv.com.
“We’re ready and confident that were going to make this frictionless and a great advantage to dealers and auto dealers, all of them,” Wilkins said. “I was a dealer and I put my head in this.”