Perhaps the biggest challenge dealers face every day relates to how “right” they bring cars into their inventory. There are many variables in play with every appraisal and a multitude of things that can, and do, go wrong.
Worst of all, dealers have traditionally lacked a way to manage and monitor appraisal decisions until long after the fact — often after a vehicle you thought you bought and priced right ages into a loss.
This Access: Innovation workshop reveals how data science can strengthen the consistency and effectiveness of your appraisers, helping them appraise, acquire and price vehicles for optimal retail outcomes that align with your strategic used vehicle objectives.
Just like the U.S. Congress holds the power of the nation’s purse strings, the used vehicle managers at most dealerships control the pricing and profit potential of the used vehicle department.
Therein lies a persistent challenge for dealers. If you look, you’ll find cars that aren’t priced to sell or they’re priced to leave money on the table in almost every dealer’s inventory. It’s been this way for years, and today’s higher level of volatility in vehicle prices brings greater risk that your retail prices aren’t what or where they should be.
This Access: Innovation workshop offers a new way forward, revealing how data science-based pricing recommendations in ProfitTime® GPS can ensure a higher share of your inventory is more consistently priced to where it’ll deliver the best outcome for your dealership.
If you look across the industry and identified dealers who have consistently grown their used vehicle gross and volume during the past year, they all have one thing in common: They proactively acquired a higher share of their inventories directly from customers.
It’s one of the many ways the pandemic has changed the used car business. This won’t be news to anyone at Access: Innovation. But the shift to multi-channel sourcing marks a turning point for dealers in the manner and means they use to manage buyers and appraisers in non-traditional channels.
The biggest difference? The data science that’s now available to establish acquisition objectives both overall and for distinct sourcing channels. Also, there’s a new system that taps the data science to guide your buyers and appraisers, so they’re consistently achieving your channel-specific objectives over time.