Riding the Wave of Innovation: How Advanced Data Tools Are Transforming Automotive Appraisals

Josh DeYoung, VP of Sales Velocity Automotive

January 2024 • AutoSuccess

In the automotive sales industry, a significant shift is underway, marked by the evolution of vehicle appraisal tools that are enhancing accuracy and instilling confidence among used car managers. Traditionally, dealerships have relied on inventory tools that use market data to price their inventory. However, there’s a growing realization that relying solely on these traditional methods may not be sufficient in today’s fast-paced market. It’s time for dealerships to step up and embrace additional data sources outside of what they have been using.

The integration of real-time market data into appraisal tools is a key development in this area. While dealerships have been using market data for years to price their inventory, the recent advancements offer a more nuanced and real-time perspective. This integration provides up-to-date sales data and market trends, allowing dealers to make informed valuations with a level of precision that was previously unattainable. By utilizing this data, dealerships can maintain balanced profit margins and ensure fair pricing for customers, responding more effectively to the dynamic automotive market.

Modern appraisal tools are not just about accessing data; they also feature user-friendly interfaces and comprehensive reporting capabilities. These tools simplify the appraisal process and provide detailed insights into key performance metrics, something that traditional inventory tools might not offer. The ability to customize these tools according to specific dealership needs and market dynamics ensures that appraisals are closely aligned with strategic goals, giving dealerships a competitive edge.

Looking ahead, the trend is clear: the automotive industry is moving towards more integrated and technologically advanced solutions. The potential integration of AI and machine learning promises to bring even greater precision and reliability to vehicle appraisals. Embracing these advanced tools is no longer just an option, but a necessity for dealerships to thrive in a competitive and ever-changing market. By leveraging technology to improve operational efficiency and build stronger trust with customers, dealerships can stay ahead of the curve and adapt to the evolving automotive landscape.

In essence, for dealerships that have been using market data for years, it’s time to augment their approach with these advanced tools. By doing so, they can harness the full potential of modern technology to make more informed decisions, stay competitive, and meet the ever-evolving demands of the automotive market.

Velocity Automotive and its sister company, Rapid Recon, will release its VINSight predictable profit per vehicle solution at NADA ’24. The fully functioning OBD-II diagnostics plug-in also uses Rapid Recon and third-party labor and parts costs to equip appraisers with accurate recon costs for the appraised vehicle.