Business View Magazine | Volume 9, Issue 2

76 BUSINESS VIEW MAGAZINE VOLUME 9, ISSUE 2 automotive and parts industry has led to an inventory crunch that, two years on, is yet to resolve fully. For Hubert Vester Auto Group, these effects functioned as catalysts for innovation, propelling the company into new waters it had never tested before. Vester admits, “When the pandemic started, people were afraid to leave their houses, so we had lots of units but no buyers,” says Vester. “By mid-2020 coming into 2021, people started leaving their houses but, by then, we had no inventory to keep up with the demand that ensued.” Like most other dealers, Hubert Vester turned to used car sales to fill the gap left by dwindling new car supplies. However, more was needed to maintain a steady supply of used car inventory since there is no formalized supply chain like there is for new cars. “To solve our used car inventory challenge, we came up with the idea of incentivizing our salespeople to find us units to buy for resale,” says Vester. “It was a complete game-changer for us because our people started tapping into their networks – friends, family, friends of friends – anyone who could connect us to a used car seller. The result has been a steady stream of used car inventory, plus some thrilled salespeople who are making money both from bringing in cars and then selling them.” Although the incentives started as a stop-gap measure, Vester says that it will become a permanent part of their business model in the future because it has worked so well. Yet, while the company has enthusiastically embraced the used-car business model, Vester is adopting a wait-and-see stance regarding electric vehicles, and he offers several compelling reasons why. “Although the government is pushing electric cars, the industry and market just aren’t ready for large-scale EV adoption yet,” he explains. “For instance, Toyota is choosing to focus on hybrid cars because it recognizes the limitations of infrastructure. We, as a nation, just don’t have enough charging stations available across the country to make EV a viable option.”