Two new systems for managing used-vehicle inventory are on display here.
One of the Web-based systems acts as a buying agent for dealers, says Bruce Thompson, founder and CEO of lanelogic. The other, Manheim's POINT, analyzes dealership sales information to determine which vehicles sell well, says Hal Logan, senior vice president of strategic planning at Manheim.
Thompson says the lanelogic system examines inventories and tells dealers which used vehicles sell fastest and for the most money.
Dealers load information into the system about a used vehicle they'd like to sell. The system then determines which dealership within lanelogic's network needs the vehicle.
A trader employed by lanelogic bids on a vehicle. If the selling dealer accepts the bid, lanelogic buys the vehicle. It then offers the vehicle to a particular dealership considered most likely to sell it. That store has 48 hours to buy the vehicle at the price determined by the system.
Thompson says lanelogic does not charge monthly or setup fees. Dealers pay $200 to buy or sell a vehicle.
Vehicles submitted to lanelogic that do not find buyers are auctioned off.
Thompson says lanelogic will buy back any vehicle it recommends, for the purchase price minus 2 to 4 percent depreciation, if a dealership does not sell the vehicle within 45 days.
"You're giving me permission to go out and be a buyer for you," Thompson told Automotive News.
Thompson and CoPart Inc. jointly own lanelogic. CoPart, of Fairfield, Calif., operates VB2, a software system auctions use to sell vehicles on the Internet.
Manheim's Logan says his company's POINT system helps dealers decide which used vehicles they should stock to make the most money in the shortest time. The system also tells dealers when to adjust vehicle prices.
"Dealers told us if there was a better way of matching inventory to retail demand, their businesses would work better," Logan says.
About 30 dealers have signed up to use POINT, Logan says. There is a $1,000 setup cost and a $2,388 annual fee. Dealers who participate in POINT give Manheim permission to extract sales and inventory data from their computer systems, Logan says. POINT is compatible with ADP and Reynolds and Reynolds dealer management systems, he says.
POINT also uses pricing data supplied by Edmunds.com to determine which vehicles sell well in a dealer's local market.
You may e-mail Arlena Sawyers at [email protected]