When customers enter a dealership with a trade-in, their primary goal is to get the best possible deal. There are a variety of apps that help customers value their trade-in. Dealerships are looking to make money, however, and they also need accurate appraisals. Whoever makes the appraisals at a dealership holds a lot of power: the decisions of this person can swing a dealership’s sales 35 percent or more. In other words, the business’ wholesale profit or loss is partly attributable to the decisions made by this person whose abilities (or lack of abilities) often aren’t apparent until many months after hire. It’s critical to get it right.
Luckily, technology is stepping in, and this time, it’s on behalf of dealers instead of customers.
This week, CarStory, an automotive AI platform, announced the launch of CarStory Appraise, the first dealer appraisal product to combine sales predictions with so-called “big data” information in a consumer-grade, intuitive interface.
“Buying the right cars at the right price is critical to maximizing profits for a dealership,” said Chad Bockius, President and Chief Product Officer at CarStory. “Historically, dealers have had to juggle a variety of unknowns and gut calls — how fast a car will turn, how much it will sell for, what is the current supply and demand and more — in order to determine what to put on their lot. But by using AI-powered, predictive analytics, CarStory Appraise offers the most complete and accurate assessment of a vehicle based on how each car will perform on a specific dealer’s lot, not just what other dealers are paying at auction.”
The dealership appraisal app analyzes thousands of data points to develop a precise sale forecast. The app takes into consideration current supply, shopper demand, unique features, color, mileage, price and even a dealer’s performance. Using AI and machine learning, CarStory Appraise analyzes a VIN against the local market to see exactly when the car will sell and for how much. The app is particularly useful when dealers find themselves acquiring or selling a car they’re less familiar with by showing exactly how a potential acquisition will fit into the market and how it will sell on a dealer’s lot.
The CarStory Appraise app is now available for Apple iOS and Android in app marketplaces.
