Dealer software giant Reynolds and Reynolds has purchased XtreamService, a niche maker of customer retention software that helps dealers determine prospects who can buy new cars for the same or lower monthly payments as the vehicles they are driving.
Terms were not disclosed.
XtreamService has more than 500 customers, including about half of Hendrick Automotive Group's 87 stores, as of March 2013.
XtreamService is an outgrowth of the Hendrick Group, though it is now an independent company. Both companies are based in Charlotte, N.C.
Reynolds, of Dayton, Ohio, sits aside ADP Dealer Services as the industry's top-selling makers of dealer management systems. That is the operating software that helps dealers manage their stores from payroll and accounting to consumer credit information, inventory management and service.
In a statement, Reynolds spokesman Tom Schwartz said XtreamService's software goes beyond the current equity-mining features found in the Reynolds DMS. Equity mining shows dealers when a customer's vehicle is worth more than he or she owes on it.
The XtreamService software automatically scours the database of a dealership to not only identify customers who have equity in their vehicles but also those who are nearing lease expiration, have strong residual values or can benefit from lower interest rates.
Salespeople then use the information to offer lower payments to customers on new vehicles, often before they are even looking to buy another car.
Vendors that sell equity-mining software say only about 20 percent of dealers use sophisticated data mining to any significant degree.
Others vendors include the data-mining software of Dominion Dealer Solutions, AutoAlert, Dealer Wizard, Driving Loyalty, DealerSocket and the equity calculators of ADP and Dealertrack Technologies.