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Blending Science and Strategy to Maximize Used Vehicle ROI

Blending Science and Strategy to Maximize Used Vehicle ROI. Dale Pollak , Founder vAuto , Inc. 1. Today’s Talk. The next evolutionary phase of Velocity. A look into the future. Provisioning. Provisioning.

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Blending Science and Strategy to Maximize Used Vehicle ROI

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  1. Blending Science and Strategy to Maximize Used Vehicle ROI Dale Pollak, FoundervAuto, Inc. 1

  2. Today’s Talk The next evolutionary phase of Velocity A look into the future

  3. Provisioning Provisioning

  4. For most dealers, the primary purpose of the used vehicle department is not to generate profit.

  5. For most, the primary purpose of the used vehicle department is convenience and necessity.

  6. Proof Case What would an investor do? -How is money being invested -How much money is to be invested

  7. Provisioning [Prə’•viZ•Hən•ing] -noun 1. The efficient use of supplies and resources to achieve a successful mission.

  8. Establishing The Strategy TO DETERMINE INVENTORY LEVELS

  9. Inventory Preferences $10k-15k $15k-20k $20k-25k

  10. Inventory Preferences $10k-15k $15k-20k $20k-25k 45 45 45 45 45 45 45 45 45

  11. TargetDealership Days Supply $10k-15k $15k-20k $20k-25k 45 45 45 +2 +1 -2 60 60 60 +6 +8 +5 30 30 30 0 -1 -4

  12. Executing The Strategy FOR PROVISIONING VEHICLES

  13. What to Buy What to Pay Where to Find It

  14. What to Buy $10k-15k $15k-20k $20k-25k A- 2007 Volkswagen Touareg V6 B+ 2009 Ford Focus SE B 2008 Infiniti G35 Sport B- 2008 Dodge Avenger SE

  15. What to Buy A- ?

  16. What to Buy DemandA+ A- 2007 Volkswagen Touareg V6 Demandisthenumberofpeopleinyour area who are searching for this car. With a grade of A+, this is in the 99.03 percentile when compared to all other vehicles in your market.

  17. What to Buy Demand A+ InterestA A- 2007 Volkswagen Touareg V6 Interestis the average conversion rate from SRP to VDP for this vehicle in your area. This car gets an A with an average SRP to VDP conversion rate of 7.27%.

  18. What to Buy DemandA+ InterestA A- VolumeA 2007 Volkswagen Touareg V6 Volume is the number of units sold in your area recently. This car gets an A for having sold 11 in the past 45 days.

  19. What to Buy DemandA+ InterestA A- VolumeA 2007 Volkswagen Touareg V6 Days Supply measures the current available supply of similarly configured vehicles and the rate at which such vehicles have been sold over the last 45 days. Days SupplyA This car gets an A with 37 days supply.

  20. What to Buy DemandA+ InterestA A- VolumeA 2007 Volkswagen Touareg V6 Profitability is the spread between average asking price and the wholesale price. Days SupplyA Profitability B This car gets a Bbecause the national average auction price is $14,927compared to the average list price of $19,232 in your market.

  21. What to Buy DemandA+ InterestA A- VolumeA 2007 Volkswagen Touareg V6 Availabilityis the number of units available in auctions now. Days SupplyA Profitability B This car gets a B because there are currently 21 available at auctions. AvailabilityB

  22. What to Buy DemandA+ InterestA A- VolumeA 2007 Volkswagen Touareg V6 Experience measures the success of your recent sales of this make / model. Days SupplyA Profitability B This car gets an Abecause your dealership has sold 4 of this make/model. On average, those vehicles sat on your lot 21 days. The last sale 02/02/12. AvailabilityB ExperienceA

  23. What to Pay A- $15,324 $19,232 $18,941 $13,370 51,144 60k 80k 40k 2007 Volkswagen Touareg V6 Bid Limit Mkt. Avg. To price your vehicle at $17,924 (93.2% of market) with a profit of $1,500. Assuming $800 in reconditioning and $300 in pack, you can pay up to $15,324 (less transportation costs).

  24. Where to Find It

  25. Where to Find It Manheim Chicago: $15,324 Run#: 431 Lane: 9 ECR Grade: 4.5Bid Now Date: 12/03/12 11:30 am

  26. What to Buy What to Pay Where to Find It

  27. Thank You!!Dale Pollak, FoundervAuto, Inc., Oak Brook, ILdpollak@vauto.com630-343-9016

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