CARPROOF's VVR helps dealers reduce negotiation rates and increase profit
LONDON, ON, August 11, 2016 – After four months in market, CARPROOF’s Vehicle Valuation Report (VVR) has proven its ability to help dealers reduce negotiation and improve turn rates, thereby selling vehicles faster and with higher profit margins.
VVR is an appraisal tool that brings wholesale, listings, and True Retail Sold™ information to the dealer in a simple, easy-to-use package. This increases transparency into the offer a dealer makes on a customer’s trade-in, helping them build their inventory at the right price. The data is also used to set accurate listing prices and reduce the amount of negotiation required to close a deal.
CARPROOF’s analysis reveals that VVR has helped dealers buy and sell smarter in just a few short months. The average negotiation rate on a used vehicle is almost eight percent, with negotiation rate defined as the difference between a vehicle’s listing price and the price that it actually sells for. This gap represents $2.5 billion in potential profit erosion. When dealers see a complete picture of the vehicle’s value via VVR, they can list the vehicle competitively, reducing average negotiation rates by nearly 50 percent.
A related benefit is improved turn rate. Others in the industry have said that on average, vehicles turn in 40+ days. CARPROOF's research shows that average vehicle turn with VVR is 29 days.
Mervin Corbin at Birchwood Kia knows the value of VVR and relies on it in his dealership. "VVR displays accurate listed, retail and wholesale values in a clear and concise report which allows my salespeople to build value in our purchase and sales process. I do not purchase a vehicle without consulting VVR."
"Consumers have access to more information than ever before, making it imperative for dealers to set accurate listing prices. When the price is too low, potential profits are lost, but when it’s too high, dealers miss out on the lead altogether since price is a key aspect of online searches," says Mark Rousseau, president at CARPROOF. "VVR helps dealers reduce negotiation rates and turn vehicles over faster, so they can sell more cars and make more money."
VVR was released to the Canadian market in April 2016 and is already being used by some of the country’s largest dealer groups. For more information about VVR and its benefits, visit www.carproof.com/vvr today.
CARPROOF, a unit of IHS Markit (Nasdaq: INFO), is a world-class data company that creates insight through information for the automotive industry. Offering solutions in vehicle history, appraisal, valuation and more, the CARPROOF name is synonymous with trusted, impartial and comprehensive used vehicle data. CARPROOF’s products are used by dealerships, vehicle manufacturers, consumers, major auctions, governments, insurance providers and police agencies across Canada, to help users buy, sell and appraise vehicles with full transparency. Based in London, Ontario and founded in 2000, CARPROOF has been named one of Canada’s 50 Best Managed Companies, and was also honoured with Deloitte’s 2013 Technology Fast 50™ and Fast 500™ awards. For more information about CARPROOF, visit www.carproof.com.
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