There’s no doubt that Australian car buyers are now equipped with a far greater understanding of what constitutes value and a fair price on the used car market. Where once there was a lack of pricing transparency, buyers can now easily arm themselves with accurate information about market prices and trade-in values before visiting a used car dealership.
Market intelligence for better decisions
With buyers this knowledgeable, the traditional retailing approach with age-based price revisions is proving increasingly ineffective. For example, when a stock item is priced too far above the market price on an online marketplace such as carsales—Australia’s #1 for cars—the stock item suffers from limited exposure and as a consequence, dealers receive low levels of qualified enquiry until pricing is revised, all while holding costs attributable to the stock item is incurred.
In stark contrast, adopting a market-driven pricing strategy backed by real-time data will ensure listings attract more buyer attention and receive more qualified enquiries – helping dealers realise stronger gross profit, limit holding costs and encounter fewer problems clearing old stock.
Fortunately for Australian dealers, it’s easier to implement a more effective market pricing strategy and make data-backed, profitable decisions with LiveMarket actionable market intelligence – the most comprehensive analysis of the Australian used car marketplace available to dealers. LiveMarket takes the difficulty out of manual competitor analysis and allows dealers to immediately recognise where their stock sits in relation to competitor stock items on carsales – facilitating enhanced decision-making that can boost the bottom line.
Three ways LiveMarket delivers pricing and stocking improvements
1. Undertake accurate appraisals
Trade-ins deliver dealers with much of their used stock. LiveMarket makes evaluating the profitability of trade-ins and stock purchases easier and more accurate. Instant VIN and Registration vehicle lookup streamlines the appraisal process—eliminating guesswork and mistakes—and delivers a more accurate appraisal. Once appraised, the vehicle can be easily compared to others in the market, enabling you to understand its pricing position and potential profitability.
2. Buy stock smarter
Buying the right stock is critical to profitability. LiveMarket reporting highlights stock that is moving quickly and in demand with buyers. Actionable, up-to-the-minute reporting delivered by LiveMarket includes fastest-moving used cars, vehicles by sales volume and vehicles that have the highest sales volume relative to supply.
3. Move stock faster
As a general rule, the less time a stock item sits on the dealership forecourt, the greater its gross profit on sale, underlining the importance of listing stock with a market price – first time. With LiveMarket, dealers can quickly benchmark stock against similar competitor items and set market pricing that maintains profitability. Key actionable insights to ensure dealers make an informed pricing decision include Kilometre Adjusted Pricing (KMAP), Days Supply, Delisted Items and Average Time to Sell. For more detailed analysis, Competitive Set data, Market Analysis and RedBook Pricing are also available.
Did you know that buyers often increase their budget?
When buyers spot a fair price, they’re often prepared to extend their budget to secure the deal. In the ground-breaking study, The Journey to Vehicle Ownership:
86% of car buyers surveyed in the study indicated that they had a budget in mind for their purchase¹
38% increased their budget since beginning their purchase journey¹
Source:
1. Journey to Vehicle Ownership, 2017
