Take Your Used Car Margins to the Next Level

With used car prices climbing there are now very good financial rewards to be made. For some groups, after more than a year of disruption and hardship, simply obtaining this reward on the principle that a rising tide floats all boats will be enough.

The top 25% of groups, those who insist on consistently outperforming the market, will set themselves a different challenge. They will adapt rapidly to maximise returns during this upturn in the market, just as they react quickly to minimise loss during a negative event.

 PriceSmart, which layers over data provided by Autotrader Accelerator, is giving groups that use it a huge advantage, generating an additional £300 per car in margin on average and increasing margin without increasing days to sell.

We are transforming the role of sales manager when it comes to pricing – moving pricing from a repetitive and detail intense “overwatch” exercise, to one where strategy and decision making become the driving force, where an intelligent analytics programme will highlight only the work that does need doing and provide continual feedback on performance to allow policies to be continually monitored and improved.

Find out more about used car dealership profitability.

How does RWA PriceSmart work?

RWA PriceSmart allows groups to build and apply dynamic pricing policies. With RWA PriceSmart installed groups can execute flawlessly – managing by exemptions rather than constantly reviewing all data:

• A dynamic pricing policy is one where poorly rated cars are sold at market price and higher rated cars are priced at a premium to reflect the desirability and the dealers own brand’s worth.
• With prices constantly fluctuating, automated reporting notifies sales managers every morning with a shortlist of which cars are need repricing, as well as flagging discrepancies in marketing.
• Head Office is able to monitor performance, implementation and make rapid judgement on any alterations to policy in order to keep margin at optimum levels.

Results that you can expect

• With RWA, dealerships can typically 2-5% above the market on a systematic basis.
• There is no increase in overall days to sell.
• Your will also benefit from an early warning of falling valuations /retail ratings. Essential in order to reposition yourself to avoid inventory losses if and when the market does change