Show notes
Target Retail aka: consumer selection. A number that is based on the characteristics of the VIN, mileage, equipment, colour, condition, history, keys, service history, etc in the retail market.
Target Trade, aka: adverse selection, or STRIV: Short Term Residual Insurance Value, an underwritten number that dealers can base a trade value on.
Target Auction, aka: conscious selection. This value is what you would anticipate the vehicle bringing in an auction marketplace if the best end user was present.
By adding a data-driven process you can trade cars without FEAR or uncertainty. You make money when you acquire vehicles, not when you sell them. By acquiring vehicles based on their VIN-specific characteristics, you're able to avoid welding yourself into cars that you can't retail or wholesale your way out of.
5:50 The hum-line or insurance number (target trade) gives the dealer confidence to call the car, then find the best end user.
Does your appraisal process include an OBD reader for decoding the truth about each VIN? Know the status of the VIN before you acquire the vehicle to ensure profitability on every trade.
8:00 What process will allow you to mitigate the risk of losing a customer?
8:30 Target Retail based on the VIN-specific characteristics, mileage, equipment, colour, condition, history, keys, service history, etc in the retail market. Are you going to certify the car? That will bump up the relevant retail ask.
It's not based on what your neighbour has going on, it's based on what you'd have to pay to replace that vehicle in it's current condition.
10:50 Who is the best end user? Bob shares a story of one of his friends that just took in an S-Class Mercedes at their Toyota dealership. It's competitively priced but the dealer can't sell the car. Problem # 1) He's in Florida and the car has no AC. Problem #2) He's only got one of them.
What does this reveal? He is not the best end user.
The theory that everybody is the best retail dealer for every car is simply not true. There is typically a better end user.
19:50 Be careful when you're buying. Some cars are colour sensitive, equipment sensitive, history sensitive. You need you to input these data points. It's not sustainable to buy trades without fully understanding the VIN-specific characteristics.
The auction reveals a better end user that is willing to overlook certain items and pay the ultimate amount of money for that vehicle.
Do you want to pay the ultimate amount of money before presenting the consumer with the condition of their vehicle to rationally understand where your offer is coming from?
Like what you hear? Check out this episode and many others on YouTube.
The VIN-dow Podcast is brought to you by Accu-Trade. Do you want to improve your vehicle acquisitions with transactional transparency for your customers? What about the trade-in process?
Developed by the largest independent wholesale dealer in history, Robert Hollenshead. It’s the same tool they use every day to do their job. Every lesson learned from over $20 Billion in transactions and 900 cumulative years in wholesale is built into the platform. All made easy to understand and available for anyone to use.
Robert Hollenshead is a serial entrepreneur, the World's Largest Automotive wholesaler (R. Hollenshead Auto Sales) and visionary behind disruptive automotive industry solutions such as:
Accu-Trade: www.accu-trade.com
Galves Market Data: https://www.galves.com/
MADE Logistics: https://made-logistics.com/
Headstart VMS, LLC: https://www.rhollensheadautosales.com/headstartvms/
MADE Financial: https://www.rhollensheadautosales.com/made-financial/
AutoMoto Social: https://www.automotosocial.com/
AutoMoto HR: https://www.automotohr.com/
WreckCheck.com: https://www.wreckcheck.com/
PuroClenz: https://puroclenz.com
Robert has been and continues to be a game-changing thought leader in the way vehicles are bought and sold today.
Linked In: https://www.linkedin.com/company/accu-trade/
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