A new pilot program could help dealers integrate data science, predictive analytics and machine learning into the remarketing process to help save time and possibly increase sales margins and cash flow.
KAR Auction Services has launched a pilot program for its Data as a Service (DaaS) suite of capabilities. KAR in 2017 acquired DRIVIN, which powers the ability of the new DaaS suite to use data and technology from across the KAR platform as well as proprietary algorithms to deliver intelligence that dealers can use. The program is meant to help dealers integrate data science, predictive analytics and machine learning into the remarketing process, saving them time and possibly helping them increase sales margins and cash flow.
KAR launched the program during the Auto Intel Council news conference at NADA Show 2019.
“Every day our customers are making inventory decisions — deciding which cars will sell quickly and profitably on their lots and how to best replenish inventory,” Joe Oliveri, general manager of KAR Data as a Service, said in a news release. “We have the capabilities to help our customers make faster, better informed decisions specific to their individual rooftops, not just their state or their market.
"Our rich data coupled with predictive analytics can pinpoint which cars will sell quickly at retail, which trade-ins to keep for retail sale and which ones should go to auction along with the auction channel that would provide the fastest sale at a fair price," Oliveri continued.
KAR notes that its DaaS capabilities can offer actionable analytics for dealer customers, as well as time and cost savings.
KAR’s ADESA business unit with more than 75 physical and online auction marketplaces is participating in the pilot along with an East Coast dealer group with nine OEM franchises. KAR is also conducting a pilot program with several dealers to provide lot analysis reports with data and recommendations for dealerships and to the individual vehicle.
“Not all vehicles are created equal. Each car has a unique value curve depending on the lifecycle of that car and a host of other economic, market, and dealer behavioral data,” Oliveri said.
Through data science, we are now starting to inform dealers participating in our pilot the likelihood a specific vehicle will sell — both retail and wholesale — and when they should dispose of identified inventory.”
The company explained pilot dealer participants will see a holistic snapshot of what is in demand. KAR also mentioned the snapshot will reveal which vehicles could provide the best return on investment and how the dealers can best dispose of less desirable vehicles.
KAR insisted that data will be relevant to the dealer’s “individual rooftop.”
The company went on to note lot-specific reports containing inventory segmentation analyses are also part of what pilot dealers receive, along with purchase recommendations and remarketing advice. That information can provide dealers with goals for the best vehicle mix, ability to sell and the best disposal channel.
KAR added that it is fine-tuning the reporting and algorithms as the pilot continues, based on feedback from pilot program dealers, sales information and market reports.