Isn’t It Time for a New Car Vehicle Management Tool?

By Bruce Thomp­son, Pres­i­dent, Red Bumper

DDD Edi­tor Input and Com­men­tary: Here’s a quick run­down on the inno­v­a­tive new car inven­to­ry man­age­ment sys­tem that Red Bumper has evolved, migrat­ed, and devel­oped from their lead­er­ship posi­tion in mobile tech­nol­o­gy plat­forms in used car inven­to­ry man­age­ment for deal­ers:

What deal­er man­age­ment must real­ize:

The amount of insight deal­ers have into their new-car oper­a­tions is extreme­ly lim­it­ed due to a vari­ety of fac­tors that are cur­rent­ly forc­ing deal­ers into buy­ing the wrong units at the wrong time. Exter­nal and inter­nal pres­sures to acquire units that are tru­ly sur­plus to the dealer’s needs are serv­ing the desires of OEMs and hin­der­ing the deal­er from run­ning the most prof­itable and effi­cient busi­ness pos­si­ble. Mean­while, these sur­plus units sim­ply sit on the lot col­lect­ing dust and cost­ing you mon­ey.

What met­rics & KPI can your deal­er team gain to man­age your new car inven­to­ry?

There will now be at least one prod­uct on the mar­ket that will put the pow­er back in the hands of the deal­er to stream­line their new car oper­a­tions and take it to the next lev­el. Vital met­rics and KPI’s mea­sured for any deal­er or deal­er group should include:

  1. Cur­rent day sup­ply, Days Sup­ply to Tar­get
  2. Turn time
  3. Top col­ors
  4. Top vehi­cle pack­ages
  5. Top trims
  6. Units on the ground vs. in tran­sit
  7. Prof­its, prof­it per day
  8. Inter­est and grace units
  9. F & I Cycle times
  10. Stock­ing rec­om­men­da­tions
  11. Real-time Fore­cast to tar­gets
  12. Inte­grat­ed descrip­tions
  13. OEM Incen­tive and mar­ket pric­ing tools
  14. Trad­ing tools for groups

Order­ing vehi­cles from the Man­u­fac­tur­ers:

Your deci­sions when it comes to order­ing from the OEM will no longer come down to the “gold­en gut”, but rather real-time ana­lyt­ics and key per­for­mance met­rics pro­vid­ing a sol­id foun­da­tion to your rea­son­ing.

Add mer­chan­diz­ing and pric­ing tools:

After the sys­tem does all the heavy lift­ing for the deal­er from an order­ing and stock­ing per­spec­tive, we still need new mer­chan­dis­ing and pric­ing tools. Look for a tool that inte­grates with com­pa­nies like Edmunds.com True Mar­ket Val­ue (TMV) algo­rithm for every unit to allow a deal­er to tru­ly mas­ter the pric­ing of their new inven­to­ry.  Also, auto-pric­ing tools based on for­mu­las, algo­rithms and real-time mar­ket data that take the guess­work out of new car pric­ing.

New car man­agers and deal­er prin­ci­pals have been wait­ing for this type of tech­nol­o­gy for a very long time. It’s time to up your New Car IQ.

Now go www.redbumper.com or call 888 339‑1116 to see how this all works. 



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