CARPROOF reps say its Vehicle Valuation Report (VVR) is already proving its ability to help dealers reduce negotiation time and improve turn rates allowing for quicker sales with higher profits.
The claim, made this week by the London, Ont.-based company, comes after VVR’s first four months in market. The appraisal tool, first reported on by Canadian AutoWorld, brings wholesale, listings and True Retail Sold information to dealers in an easy-to-use package.
The company noted the increased transparency helps dealers price customer trade-ins properly and build 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 the average negotiation rate on a used vehicle is almost eight per cent, 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 per cent,” the company said in a statement.
Further research released by CARPROOF showed average vehicle turn rate with VVR is 29 days as opposed to the higher industry average of 40 days.
“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,” Mervin Corbin at Birchwood Kia said.