DealerTrack Quantifies Benefits of Inventory Management Solution and Carfax
LAKE SUCCESS, N.Y.--DealerTrack, Inc., a subsidiary of DealerTrack Holdings, Inc. , a leading provider of on-demand software and data solutions for the U.S. automotive retail industry, today announced the results of a study that quantifies the benefits to dealers of marketing used vehicles that have had only one previous owner. The data underscores the value of using DealerTrack’s inventory management solution, coupled with integrated Carfax Vehicle History Reports, as a key step for dealers in managing their inventories more proactively and evaluating potential trade-ins.
The study revealed that average gross profit on the Carfax 1-Owner vehicles was 23 percent more than the average gross profit on vehicles that had two or more owners. In addition, Carfax 1-Owner vehicles sold in 26 days on average, five fewer than the 31-day average turn for multiple-owner vehicles. The study is based on actual used vehicle transaction data from 2008 for a national dealer group that uses DealerTrack’s inventory management solution. The data included 49,897 retail or lease transactions involving Carfax 1-Owner vehicles, and 122,970 transactions involving vehicles with two or more previous owners.
“This DealerTrack study proves the value of Carfax data for used car dealers looking to make more money and sell cars faster,” said Larry Gamache, communications director at Carfax. “Dealers can run a Carfax Report at auction or trade-in to identify 1-Owner cars early and cherry pick their inventory. In today’s economy, used car shoppers are looking for great values like these.”
Dealers using DealerTrack’s inventory management solution have integrated, “one-click” access to Carfax Vehicle History Reports. Carfax reports are derived from more than six billion records in the Carfax database and can include ownership history, vehicle use, service records, mileage readings, title brands, and much more.
“While this study highlights the impact of a single vehicle attribute, it strongly suggests that dealers can realize even greater benefits from applying analytical tools to manage their inventory more systematically,” said Tim Zierden, general manager, inventory at DealerTrack. “Using a robust inventory management solution driven by transaction-based data can help dealers stock the right vehicles, turn them faster and focus on profitability. Unlike market pricing utilities that focus on price alone, our data-rich inventory solutions help dealers uncover factors that drive higher profits, the most important consideration in the current economic environment.”