Remarketers are selling two new systems meant to help auto dealers manage used-vehicle inventory.
Manheim's POINT analyzes a dealership's sales data to determine which used vehicles sell well, says Hal Logan, senior vice president of strategic planning at the Atlanta auction company.
The other Web-based system, lanelogic, is a used-vehicle buying agent for dealers, says Bruce Thompson, CEO of the Dallas company.
POINT helps dealers decide which used vehicles they are most likely to sell quickly and profitably, Logan says. The system also tells dealers when to adjust prices, he says.
"Dealers told us if there was a better way of matching inventory to retail demand, their businesses would work better," Logan told Automotive News. About 30 dealers have signed up with POINT, he says. They pay a $1,000 setup cost and a $2,388 annual fee.
POINT uses pricing data supplied by Edmunds.com to determine which vehicles sell well in a dealership's market. It enables dealers to consign vehicles for sale to a Manheim auction.
Manheim developed POINT with feedback from 18 dealers in three markets, Logan says.
Like POINT, lanelogic examines used-vehicle inventories at individual dealerships. It also predicts which used vehicles a dealership will sell fastest and for the most money. Thompson says 1,000 dealerships enrolled in the program this month at the National Automobile Dealers Association convention in Orlando, Fla.
A dealer tells lanelogic about a used vehicle he or she would like to sell. The system determines which dealership in lanelogic's network needs the vehicle most.
A lanelogic trader bids on the vehicle. If the selling dealer accepts the bid within 48 hours, lanelogic buys it. The dealership identified as most likely to sell the vehicle then must buy it at the price lanelogic paid for it. The buying dealership can reject the vehicle only if it discovers defects upon taking delivery.
"You're giving me permission to go out and be a buyer for you," Thompson told Automotive News.
Thompson says the system does not charge monthly or setup fees. Dealers pay $200 to buy or sell each vehicle through lanelogic.
If a dealership does not sell a vehicle it buys from lanelogic within 45 days, Thompson says, the company will buy it back for the purchase price minus $500 for depreciation. He says the system will auction vehicles it brokers that do not find buyers.
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