In 2018, Manheim’s Digital Marketplace helped make more than 2 million vehicle sales to digital buyers.
Now, as part of Manheim’s $100 million investment in expansions to its Digital Marketplace through 2019, the company is offering a new service that teams dealers up with what it calls “a dedicated expert” to help them sell vehicles through the digital wholesale marketplace.
The new service is called Manheim Express Concierge, which allows dealers to list their vehicles with the digital tools and turn inventory quickly while maximizing profits, all from their dealership lots, according to the company. As part of Manheim Express Concierge, specialists offer end-to-end service, including performing the legwork on listing vehicles and consulting with clients on their wholesale strategies. All of that work saves time for the dealer, according to the company.
U.S. dealers participating in the program will now have the optional benefit of a Manheim Express specialist visiting their dealership to capture inventory they want to wholesale. The specialist will use the Manheim Express mobile app to record details such as VINs, extensive vehicle condition and photos using 360-degree imaging technology. The specialist, working with the dealer, finalizes listings with additional disclosures or announcements and recommends pricing and channel options based on each client’s goals.
“We know the digital marketplace can offer tremendous benefits for dealers to more efficiently run their businesses, but we also know dealers are already strapped for time,” Manheim vice president of offsite solutions Derek Hansen said in a news release. “Our specialists literally meet dealers where they are and offer expert assistance on dealers’ overall wholesale strategies, from listings to financing and, when needed, transportation. It’s all part of the full-service consultation our experts are uniquely equipped to provide our clients.”
The company launched Manheim Express Concierge in select markets last fall and nationally in the first quarter of 2019. Now with coverage from coast to coast in all major markets across the U.S., the service requires no upfront cost by dealers.
Manheim also launched a Seller Desktop experience, which it says is designed to help dealers make faster, smarter decisions about their inventory. The enhancements provide a snapshot to sellers of overall inventory and offerings. They are grouped by key statuses and actions to help move the decision and next steps more quickly. A Manheim Express “mini-dashboard” with a quick list of inventory and actions will also be on the seller dashboard inventory homepage and search results pages.
Making sure they buy the right used-vehicle inventory at the right price is just one issue that auto dealers face. They must also make sure that price brings them optimal profit and turn rate.
J.D. Power and technology company CarStory had those dealer concerns in mind when they developed an app that they say provides insight on used-vehicle market prices and inventory decisions.
To get the NADA values of wholesale, trade-in, retail and loan autos, dealers can now use J.D. Power’s MarketValues application by scanning a VIN or by inputting year, make and model details. To provide vehicle history report information, the app also allows for AutoCheck or CARFAX account integration.
To help a dealer determine how much a vehicle will sell for and when, the app integrates CarStory’s machine learning techniques and current market data. Supply levels, shopper demand, competitive vehicles and dealership performance are among the market factors the app considers to predict how a potential acquisition fits into the market and how it will sell.
“This app was created to provide dealers with a comprehensive tool to quickly see very accurate vehicle valuations, history and features while also providing market and competitive insight to ensure they have all pertinent information in one convenient place,” J.D. Power vice president of vehicle valuations Jonathan Banks said in a news release. “With the help from CarStory, MarketValues gives the dealer the power to make better buying decisions.”
CarStory chief executive officer John Price said in a news release that dealer margins are under great pressure as interest rates rise. Dealers must know how fast a car will sell and when, he added. CarStory notes that more than 16,000 dealers use its services, which combine artificial intelligence and a database of inventory and shopper insights to help dealers sell more cars at a higher profit.
Manheim has seen how consumer brands such as Amazon and Netflix have increased customer engagement by deploying personalized services. Now, Manheim is following that example to enhance its own offerings, like its mobile app and Simulcast service.
In other Manheim news, the company is now integrating with vAuto’s Provision to help dealers value consumer trade-ins and act more quickly to list vehicles in the wholesale marketplace.
For the first piece of news on Manheim’s personalization initiatives, the company says it is working to deliver experiences targeted toward each individual dealer using its digital properties.
Manheim says its moves toward more personalization come as dealers are demanding digital channels that allow dealers to confidently and efficiently buy and sell inventory. They will be able to find the vehicles most relevant to them, gain quick access to their most frequently used digital tools, and find more information about the vehicles they are looking to purchase.
The Manheim.com homepage, search experience, Simulcast, and Seller Dashboard are among the areas that the company says will see enhanced personalization in 2019.
In addition, Manheim says it is creating “a new mobile experience” for dealers. That personalized experience will provide dealers features such as recommended vehicles, relevant filters, improved keyword search and faster access to important information. Sellers will receive various services from the desktop via the mobile app.
A group of dealers will be part of a pilot program for the new Manheim.com in the second quarter. After that, all users will be able to try the new experience throughout the rest of 2019.
“The enhancements to both Manheim.com and the mobile app reflect Manheim’s continued investment in digital channels,” Zach Hallowell, vice president, Manheim Digital Marketplace, said in a news release. “With solutions geared exclusively for our clients, dealers will be able to navigate the digital wholesale marketplace with increased information, helping them make faster and more informed decisions.”
For the second recent piece of Manheim news, the company is describing its integration with vAuto’s Provision as the first integration between two Cox Automotive mobile apps. The integration combines two mobile technologies, vAuto’s Provision app and Manheim Express, and the company says that helps dealers list inventory for wholesale quickly. Not having to transport a vehicle to auction saves time and money, the company adds.
Manheim says the connection helps make wholesaling vehicles easier and more cost-effective. Dealers evaluate approximately 450,000 trade-ins each month with Provision. Of those, 50,000 end up in Manheim’s wholesale marketplace, according to the company.
“The integration helps dealers know how much they can get for a vehicle at wholesale, and begin the wholesale process, whether it’s during a trade-in appraisal or after a vehicle hasn’t sold at retail, with a single tap on a mobile device,” Randy Kobat, senior vice president of vAuto, HomeNet, and Dealertrack DMS for Cox Automotive, said in a news release.
When it is time for vAuto dealers to wholesale a vehicle, the Manheim Express integration gives them what the company is calling a Guaranteed First Bid — or an instant, real-money offer — on that vehicle. Guaranteed First Bid is driven by valuation data from the Manheim Marketplace Report, and it sets a minimum floor price for a dealer’s vehicle.
Dealers using Guaranteed First Bid can reduce their risk and make good decisions during their appraisal and wholesale processes, according to the company.
Manheim will purchase the vehicle at the Guaranteed First Bid price if the vehicle does not sell for the floor price, or higher, within two sale-days of being listed. Dealers can quickly move unwanted vehicles off their balance sheets, according to Manheim.
“Combining Manheim Express’ Guaranteed First Bid with vAuto’s Provision appraisal processes provides dealers greater confidence in the values they are placing on trade-in vehicles,” Derek Hansen, vice president of Offsite Solutions at Manheim, said in a news release. “And with the ability to instantly list a vehicle, this partnership shows the seamless experience Cox Automotive is creating for dealers in the new digital wholesale marketplace.”
The Germain Automotive Group has increased front-end gross per car by $300 since beta testing a new inventory management concept from Dale Pollak and the vAuto team at Cox Automotive.
This new philosophy — and the data product behind it, called Profit Time — looks at inventory aging in a unique way, Pollack told nearly 200 high-performing dealers using the vAuto system at an invitation-only three-day conference in Chicago last week.
Pollak, with Chris Stutsman, senior director of product innovation for vAuto, said Profit Time, “a new investment prediction system” for combatting margin compression may not be for every dealer.
“I urge you, proceed very cautiously. This is for early adoptors,” said Pollak, vAuto founder and executive vice president at Cox Automotive.
He told dealers increasing margin compression forced him and the team to look again at inventory management practices.
“Something was wrong. We had missed something. There was a shift in the details in our Velocity model,” he said. “Could I challenge what I believe and what Velocity is built upon? Velocity was my identity. How would I bring this new insight to the industry?”
That “missed something” he revealed, was the error in basing inventory management on the calendar. The practice of lowering prices as vehicles age out doesn’t lead to the most sales and profit opportunity, Pollak said, because pushing up gross reduces turn and vice versa. “The goal is to optimize both gross and turn,” he said.
“We got it wrong with calendar-based inventory management. Calendar time management is flawed technology, and it’s amazing the industry got by with it for a hundred years,” he said.
The problems with age-based pricing are:
- It assumes the market compresses margin on all cars at the same time — and time’s effect on profitability depends on the vehicle; and
- It accepts that floor cost for every vehicle is the same — when all costs to markets are not equal
Profit Time categorizes vehicles according to a precious metals-type ranking system: Platinum, higher-end and Bronze or bread-and-butter vehicles in high supply, with Gold and Silver categories between.
Each night, the tool recalculates these rankings using live market views configured for the particular vehicle. This data is assigned to appraisers in real-time to assist with better appraisal outcomes. Other calculations include cost to market, like-mine day supply and market sales volume.
“There is still an art to the used-car business — art and science. Aesthetics, eye appeal, will always be a factor in making a decision about what to acquire and how to price vehicles. The science is a new data element with more insight into a vehicle’s potential than anything we had prior,” Pollak said.
“No longer are we using lagging indicators to identify performance,” Stutsman pointed out.
Describing Profit Time categories as bananas — Platinum as still-green ones with much shelf life left and Bronze as black bananas — these men noted most dealers inventory a high supply of Bronze models.
“Dealers like to buy these [black banana] cars and price them high, and then sit on them for too long because the calendar says they have time to make a profit. That is wrong!” Pollak said. “Profit Time is a rejection that calendar time has any place in vehicle management.”
Randy Kobat, vAuto’s senior vice president for Inventory Software Solutions, whom I spoke to later, used a steamboat paddlewheel analogy to explain this new turn philosophy. The paddlewheel of a steamboat turns in the river at a constant rate — the dealership’s overall turn rate. However, in this new methodology the inner spokes of the wheel, the precious metal categories, each turn at different rates.
Kobat said, dealers should turn dark bananas rapidly.
“If priced rationally, I can build volume in my store, and if I price appropriately I can create additional revenue from F&I and service. Dealers actually sit on a gold mine with black bananas they’re not capitalizing, because they hang on to them too long,” Pollak added.
vAuto believes its new data product will help dealers challenge margin compression. At the Germain Group, for instance, the tool is increasing front-end grosses by 30 percent.
“Margin compression is the single largest threat to the dealer, and you can’t stop it, but it can be managed better and mitigated much more than we have historically. Profit Time is a new metric, a new philosophy for making credible decisions that go to the heart of the margin compression problem,” Pollak said.
With dealer groups in mind, Spireon has made updates to its Kahu connected car solution that are aimed at helping multi-store dealers improve inventory management, facilitate trades and increase visibility concerning activity outside of the lot.
Spireon announced Tuesday that it has made enhancements to Kahu to provide dealer groups with tools they can use to better mitigate risk, optimize operations and boost sales numbers. With Kahu, dealers can turn their units into connected cars so that they can view and manage inventory from their desktop or mobile device.
“While U.S. auto sales have remained steady in 2018, the market continues to consolidate as dealer groups seek greater efficiencies and new opportunities to grow profits,” Spireon vice president of product management Sunil Marolia said in a news release.
“And although the latest release of Kahu has been enhanced for dealer groups, independent dealers can also benefit from the streamlined operations, increased sales effectiveness, reduced risk and increased customer loyalty generated by Kahu. Once dealers have the power of Kahu driving their business, they can’t imagine running it any other way.”
On top of newly added test drive analytics, Spireon said that the latest features it has built into Kahu can provide dealers with streamlined portfolio and inventory management, account transfer for seamless dealer trades and mobile views of inventory age, the company said.
Furthermore, the company said that standard lot management features like real-time location tracking and geofencing can make Kahu a profitable add-on that consumers enjoy, as well. And once a car buyer leaves the lot, dealers can use mileage data to accurately target them for service needs, lease renewals and trade-ins.
Kahu’s new features include the list of seven enhancements below:
- Centralized Portfolio Management—Multi-store dealer groups can view inventory, vehicle location, battery health and test drive data, for all stores with a single login.
- Simple Inventory Transfers—Dealers can transfer Kahu vehicles between stores more conveniently.
- Enhanced Mobile Views—Improved user interface and added details on individual vehicles can help increase operational efficiency, and iPhone users can access updated maps with more accurate satellite views for walking directions when locating vehicles for test drives.
- In-App Inventory Aging—Kahu can identify vehicle age along with trim details to help dealers optimize inventory turnover.
- New Analytics Dashboard and Reports— Kahu can give insight into test drives, inventory mix, aging and other vehicle data top help dealers optimize inventory and pricing based on consumer interest.
- Dedicated Recovery Hotline—There’s a new recovery hotline that dealers can use to further protect from losses.
- Expanded DMS Integration – Kahu now supports 80 percent of the franchise dealer market through integration with Reynolds & Reynolds and CDK Dealer Management Systems.
In several European markets where FCA does not operate its own captive arm, LeasePlan will now offer operational lease solutions to FCA customers.
The vehicle leasing and fleet management provider announced Monday that it has agreed to be a new FCA operational lease partner that will concentrate on the growing small and medium enterprise (SME) segment of car buyers.
FCA SME customers in Austria, Czech Republic, Denmark, Finland, Greece, Hungary, Norway, Poland, Portugal, Slovakia, Sweden and Switzerland can now take advantage of full operational lease products that are available on a preferred partner basis from LeasePlan.
LeasePlan said it defines SME customers as those with up to 25 vehicles in their fleet.
“SME is LeasePlan's fastest-growing segment and a crucial element in our strategy to lead the European Car-as-a-Service market,” LeasePlan senior vice president commercial Berno Kleinherenbrink said in a news release. “I'm therefore delighted to announce our new partnership with FCA, which gives us an additional route to serve the important SME segment.
“These customers want flexible, hassle-free and fast solutions — and that's exactly what we provide,” Kleinherenbrink continued.
At year-end last year, SME vehicles made up about 17 percent of LeasePlan's serviced fleet, according to the company.
In contrast to traditional white label agreements, LeasePlan explained that its new partnership with FCA is based on a referral model where the automaker will provide vehicles with an operational lease managed fully by LeasePlan.
The partnership aims to deliver customers flexible, cost-effective solutions in a short amount of time, according to LeasePlan.
“This is the first partnership of its kind for LeasePlan with a major European OEM,” the company said.
With pre-configured FCA vehicles available, LeasePlan said customers can receive the vehicles they select within two weeks.
Additionally, LeasePlan said that it will extend both training and certification to FCA dealers on its SME products and service portfolio.
Alliance Inspection Management (AiM) recently launched AiMCertify.com for vehicle buyers and sellers.
AiMCertify.com offers tiered inspection solutions — starting as low as $129 — for used vehicle shoppers and sellers through four product offerings: AiM Preferred, AiM Plus, AiM Premier and AiM Commercial. Each package includes:
—A 150-point inspection
—Bumper-to-bumper interior and exterior evaluation
—A test drive by a professional inspector
—15 or more photos documenting condition
—Online reporting and much more
Vehicle history reports and fluid testing are included in several packages.
All inspection products include a condition report with an “A” to “F” letter grade so buyers can quickly make informed decisions and sellers can list their vehicles with confidence.
In light of recent weather catastrophes such as Hurricanes Harvey and Irma, now is the ample time for consumers be aware of a used car's condition before making a major purchase.
Additionally, Kelley Blue Book has begun a pilot program of AimCertify.com in markets across the U.S. including:
• Los Angeles
• Chicago
• Dallas
• San Francisco
• Boston
• Atlanta
• Tampa, Fla.
• Phoenix
• Seattle
“One of the biggest concerns when purchasing a pre-owned vehicle are underlying issues that might go unnoticed,” AiM senior vice president of sales and marketing Eric Widmer said. “Prospective vehicle buyers can use our services to ensure these items get identified before they pay for the car.
“It is also a good practice for people selling cars to be proactive and get a third-party inspection as this creates a trustworthy sales experience for both parties,” Widmer continued. “With used-car sales at an all-time high, we’ve launched AiMCertify.com to provide a solution for used car shoppers that want to have an independent verification of the condition of a car before making the purchase and sellers who want to address items before they list their vehicle for sale.”
AiMCertify.com inspections use the company’s proprietary software, hardware and training to ensure consistent high-quality and accurate condition reports. AiMCertify.com condition reports are designed to increase buyer confidence and reduce the time it takes to sell a vehicle. AiM’s more than 1,400 full-time vehicle inspectors operate throughout the U.S., enabling AiM to address the more than 10 million vehicles bought and sold in the peer-to-peer market.
For more information please visit AiMCertify.com.
Cars.com outlined for consumers some of the top car deals they can expect to find at their local dealerships. But it would also be prudent for dealers to take note of what specific vehicles shoppers have their eyes on this year as arguably one of the busiest holidays of the year for most dealerships approaches.
Cars.com pointed out that with “a trifecta” of year-end, month-end and Black Friday, manufacturers are stepping up incentives for this upcoming holiday weekend.
After a sluggish October for new-car sales, OEMs are using the holiday as an “additional way to entice shoppers,” Cars.com pointed out.
On top of the incentive of what are expected to be record auto sales deals, dealers should expect a hefty increase in traffic, as well, if a recent Cars.com study is any indicator.
According to the Cars.com study, 18 percent of car shoppers said they’re more inclined to visit a dealership on Black Friday. And seventy-four percent of those shoppers said they’re more inclined to visit a dealership on the holiday specifically as a result of special deals and promotions.
Jennifer Newman, Cars.com’s editor-in-chief, had this to say for potential vehicle shoppers, “We’re seeing solid incentives from a number of different manufacturers. If you are already in the market for a new car, you might want to consider hitting your local dealership lots this Black Friday instead of waiting in long lines at your nearest big-box store. From the data we’ve seen, the reward is there for certain vehicles,” she continued.
Here are a few of the most noteworthy incentives manufacturers are doling out for Black Friday, according to Cars.com. These manufacturers are also offering further deals if customers finance through their respective captives.
- Ford Fusion: savings of between $2,150 and $5,000 on certain 2017 trims
- Hyundai Elantra: a discount of $3,000 on 2018 Elantra sedans and $1,000 off on the hatchback model, the Elantra GT
- Kia Optima: Savings of $1,500 off the 2018 Optima and $3,000 off the 2017 model.
- Kia Sorento: 2017 Sorento models can be purchased with a $3,000 to $4,000 discount, and 2018 models are being offered with a $1,500 to $2,000 discount.
“With deals aplenty, shoppers have good reason to go car shopping,” Newman said. “However, our research indicated that regardless of deals and incentives, 16 percent of shoppers are more inclined to visit a dealership this Black Friday because they have more available free time, and 8 percent said they’d shop over Black Friday simply because ‘it’s fun’.”
Integrated Auction Solutions announced Tuesday that Columbus Fair Auto Auction (CFAA) will be the first to experience the latest version of its AuctionMaster auction management system.
AuctionMaster Version 3 (V3-AMS) replaces CFAA’s AS400 green screen management system, which the auction has used for 25 plus years, according to IAS.
Following proof of viability at CFAA, IAS said the new system will be made available to other auctions after September.
“Providing the most state of the art AMS is finally here. We are strategically launching at CFAA, an auction with great size, with many third party integrations, manufacture modules, and reconditioning facilities, to just start the list,” IAS vice president of sales and business development Peter Levy said in a news release.
“We are dedicated to give the auction community options and will integrate with anyone that our auction partners desire,” he continued.
The V3-AMS system has full functionality from anywhere, allowing dealers to easily manage inventory, dealers and accounts.
It features a fully integrated block with AWG simulcast, along with a both a web-based option and tradition local server option, according to IAS.
“Our corporate mission has long been to protect the interests of independent auction owners”, added Alexis Jacobs, chief executive officer of IAS. “This technology provides our community the tools it needs to maintain sustainable, scalable, stable, industry-standard services our customers expect.”
Element Fleet Management recently introduced Connected Data, a new service for fleet performance insights that streams vehicle data from both OnStar and other connected car systems in non-GM vehicles.
Connected Data gives fleet managers the ability to tailor analytics to meet common reporting and regulatory needs, according to Element.
The new service offers dealers a selection of different data feeds they can use to optimize their fleets. Users can explore odometer reporting, vehicle diagnostics and driver behavior data.
Access to data feeds is available via Xcelerate, customized reports and Element strategic fleet consultants.
“Today’s fleets are in a unique position to harness the power of connected vehicles across an increasingly connected digital fleet workflow, one that integrates data from drivers, suppliers and the vehicle itself,” Element Fleet Management North America products and services senior vice president Michele Cunningham said. “Connected Data delivers just the subset of vehicle and driver data that customers need, making it easier to gain insights and take action in areas like optimal replacement, preventive maintenance, and assessing and mitigating driver risk and more.”
Connected Data is currently available in three packages: Odometer, Fleet and Safety.
The Odometer package provides mileage reporting compliance data and vehicle utilization insight. Fleet includes the offerings of the Odometer package, along with integrated location and diagnostics data.
The Safety packed is fitted with Fleet package data, in addition to driving pattern information used to identify high-risk drivers, help improve safety and reduce accident expense. The data covers hard braking, fast acceleration and speeding.
For additional information about Connected Data's offerings, visit elementfleet.com/fleet-services/car-light-duty/vehicle-fleet-connected-data.
