Dealers turn to digital tools amid inventory shortage

Dealers expect both new and used inventory to remain tight in 2021, and are turning to online tools to help alleviate supply issues. About one-third of dealers plan to acquire more cars through digital means in 2021 than in past years, Randy Kobat, vice president for inventory management solutions at Cox Automotive , told Auto Finance News . Dealers can use digital tools to find cars that consumers list on sites like Autotrader , appraise the vehicles, and reach out to customers with an offer, Kobat said, adding that digital tools can also help dealers make better decisions at online auctions. “We're seeing unprecedented innovation in automotive today,” Kobat noted. “More online shopping is allowing many of us to capture more insights about potential car buyers and their preferences. It is helping us present more information about the consumer so that the dealer can have a more intelligent conversation and understand where in the funnel that consumer is.” Used-vehicle prices remain high amid tight supply. In January, used-vehicle retail inventory fell to 39 days, down from the industry norm of 44 days’ supply, according to vAuto data. Wholesale supply, on the other hand, ended the month at 25 days, up from the normal 23. Dealers can entice consumers onto the lot and more precisely target deals with data-driven consumer insights, Kobat said. For example, Kelley Blue Book ’s Instant Cash Offer Buying Signals tool, announced during the NADA Show last week, uses Cox Automotive data to analyze consumer shopping trends, such as make and model preferences, and offer targeted cash-back deals, according to a Kelley Blue Book company release. “The instant cash offer helps bring consumers to a dealership, whether they’re trying to sell their car or are interested in buying a new car,” Kobat said. “It’s a really good source of quality used cars when they’re bringing those in to trade.” From July through October 2020, about 24% more leads led to completed transactions when generated with the data from the buying signals tool, according to Kelley Blue Book. The tool also allows dealers to know if customers are ready to purchase a vehicle, and what features they may be looking for. Using that data helps dealers “own more cars for less,” said Jonathan Hakes, used vehicle inventory director at Dorschel Volkswagen in New York. Auto Finance Innovation Summit, the premier event for technology in auto finance, returns March 16-17, 2021, as a virtual experience. The virtual experience will offer the quality networking and education of past events, all through an online platform. To learn more about the 2021 event and register, visit www.AutoFinanceInnovation.com .

Dealers turn to digital tools amid inventory shortage

Dealers can use online tools to yield consumer insights and acquire used cars

AutoNation sees stronger US car sales despite chip paucity

Q4 earnings wrap on a positive note, dealers prioritize digital at NADA Show [Video]

Related Posts

Ford to open battery research lab in electric vehicle push

Driving customer experience: Five ways technology plays a key role in auto finance

Battery startup comes out of stealth to seize on investor frenzy

Q4 earnings wrap on a positive note, dealers prioritize digital at NADA Show [Video]

INNOVATION & TECHNOLOGY

Ford to open battery research lab in electric vehicle push

Driving customer experience: Five ways technology plays a key role in auto finance

CORONAVIRUS

US job growth disappoints in challenge to economic recovery

COVID recovery trends with TransUnion’s Satyan Merchant

SPONSORED

Examining effective specialty recovery processes in auto finance

Closing the gaps in the digital lending experience requires a new way of coaching agents

Self-insurance, blanket coverage or CPI: Which is better for your auto loan portfolio?

About

Contact Us

Follow Us

Dealers turn to digital tools amid inventory shortage

Dealers can use online tools to yield consumer insights and acquire used cars

Already subscribed? Log in below.

AutoNation sees stronger US car sales despite chip paucity

Q4 earnings wrap on a positive note, dealers prioritize digital at NADA Show [Video]

Related Posts

By subscribing you agree to our Terms of Use and Privacy Policy

CORONAVIRUS

SPONSORED

About

Contact Us

Follow Us