Dealers can more effectively mitigate used vehicle margin compression with a Provision ProfitTime upgrade, according to vAuto. The upgrade, which will be released at the NADA Show in January, allows the use of each vehicle’s investment value — platinum, gold, silver or bronze — as a foundation for every used vehicle appraising, pricing and merchandising decision, the company says
The upgrade uses new investment value methodology to help increase used vehicle performance and profits.
Dealers can more effectively mitigate margin compression by shifting their focus from the number of days they hold a used vehicle to the profit potential that each vehicle holds, the company says.
“Our journey to ProfitTime began as we asked ourselves a critical question — “what can we do to help dealers minimize, if not stop, the advance of margin compression in used vehicles?” said Dale Pollak, vAuto founder and executive vice president for Cox Automotive.
“Our efforts to answer this question led us to a way to measure and predict each vehicle’s investment potential and an even bigger understanding that, in today’s market, success in used vehicles isn’t only about inventory turns any more,” Pollak said.
vAuto has beta-tested ProfitTime with dealers since late last summer. One of them, Scott James, President and Chief Executive Officer of Mike Shaw Automotive, had this to say: “ProfitTime gives us a better way to know which vehicles deserve more time in our inventories and those that don’t based on their investment value. When you have this insight for every used vehicle on Day 1, it leads to more profit-focused appraising and pricing decisions, and retail sales.”
