Vehicle data enhancement boosts dealer new and used car margins
September 20, 2024
Vehicle descriptions including standard and optional extras have a profound effect on new and used car ratings on classified websites.
Our automated vehicle description data has boosted one vehicle’s value by £1700+
Across a group or brand, potential stock turn and profit boost is immense
Our vehicle data enhancement work has enabled our manufacturers and dealer clients to boost new and used car ratings and speed of sale on classified websites.
By utilising our retail platform which pools disparate vehicle details from multiple sources to create one rich depository to then feed classified, dealer and manufacturer websites, our customers can now utilise industry leading automated vehicle description data including standard and optional features.
As part of our research, we found one vehicle marketed on Auto Trader’s website rated as a ‘fair price’. However, once the same vehicle at the same price underwent description enhancement based on its actual specification through ViHUB, it was rated as a ‘good price’ with a higher retail value. Buyers would therefore consider the vehicle better value for money and it would be more likely to sell faster.
It was achieved by enhancing manufacturer basic build data – the information supplied to the production line. Previously, these code-based lists not only resulted in stand-out features buried in reams of unexciting information such as ‘cupholders’ or ‘seatbelts’ but inconsistencies and often errors occurred as sales executives modified the information and added their own details.
Chris Banks, our Chief Solutions Officer “Source data often contains a host of different information and instructions crammed into one place which informed the production line of features required for whichever derivative was currently under construction. It was acronym heavy and meaningless to the consumer. Our retail platform turned the data into something that’s relevant and rich for the consumer.
“We’ve enhanced the data so much that the dealer can highlight the car’s key features including optional items that are fitted on the vehicle over standard. The system is now so sophisticated that it knows which pieces of equipment is available with each derivative which doesn’t rely on staff keying in highlights themselves.
“We believe that we now have the best platform and source of consumer data available on the market for the brands we work with and with Auto Trader Connect integration, its been taken to a whole new level.”
With Auto Trader Connect integration, the classified site’s vehicle price rating data appears alongside wider vehicle information. We discovered it had a profound effect on the rating achieved. Auto Trader assigns each vehicle a rating of a ‘great’ ‘good’ ‘fair’ ‘low’ or ‘high’ price when compared to other vehicles on its database.
“When the car is uploaded to Auto Trader using other vehicle data providers, it is significantly undervalued a lot of the time compared to the rating given to the same vehicle when uploaded through our platform. Our descriptions are richer and more accurate with features listed in a consumer-friendly manner which helps prioritise them on all classified websites not just Auto Trader. The implications for the wider vehicle inventory, stock turn and profit are huge.”
As an example, one vehicle priced at £55,300 was rated as a ‘fair’ price by Auto Trader but the same car at the same price with all the data enhancements and features incorporated was listed as a ‘good’ price when uploaded via our platform. Because the vehicle was more richly described, the Auto Trader system calculated a £1,778 price improvement which resulted in the different rating.
There are also wider implications since insurance companies use vehicle data to set residual values and the richer and more accurately described vehicles are valued higher.
“Higher residual values are hugely important to manufacturers helping brands to gain and maintain market share.”
Our developers have also integrated accessory data that means accessories sold by a range of manufacturers and retailers are now included in the sales journey as part of our offering.
