ProfitTime GPS and Global Search: A ‘Guardian Angel’ as You Acquire Inventory
While many dealers have been working hard to diversify how they source used vehicle inventory and rely less on auctions, the role of auctions as an inventory-feeder remains necessary.
But one of the more challenging aspects of acquiring auction vehicles in the current environment, where overall supplies of inventory have improved, is finding the “right” cars that fit your acquisition strategy and offer your desired money- or ROI-making potential.
“ProfitTime GPS seems to know when the writing’s on the wall. What I mean is that it’ll stop you from making a bad purchase, way before it happens,” says the used vehicle manager for a three-store group in California.
I asked for a recent example, and the manager shared this: Recently, he was looking at an auction vehicle through ProfitTime GPS’ new Global Search tool. The system recommended a purchase price so far below the current Manheim Market Report value that “it was baffling.” The manager chose to trust the finding and passed on the car. A week later, “there was a thousand of those cars at the auction and MMR isn’t what it used to be. ProfitTime GPS is like a guardian angel.”
The manager’s story resonated because it underscores a fast-emerging reality for dealers and their used vehicle managers. That is, your competitive advantage today rests not only on your experience, instinct and judgement; it’s also tied to your ability and interest in using available data and tools to make better decisions faster.
For example, the manager shared how ProfitTime GPS’ Global Search tool, which serves up active vehicle listings from auctions, private party listings, your service drive and other sourcing channels, has helped him cut almost 70 percent of the time he spends looking for wholesale inventory:
“Before I was looking through a mountain of cars to find one that’s worth buying,” the manager says. “With Global Search, I now have a smaller list that’s typically worth looking at. Where I used to spend six hours grinding through 600 cars and maybe winning five of them, I’m spending only a couple hours and I’m buying a lot more.”
The manager shared that, with the help of Global Search, his auction-purchased vehicles average a score of six in ProfitTime GPS’ scoring system, ranking them as Silver vehicles. The achievement contrasts starkly with other dealers who typically bring in auction vehicles as Bronze, with investment scores ranging from one to three.
Perhaps the best part of the manager’s story is how he intends to invest the time he’s gained back by using Global Search to aid his acquisition efforts. “We’re going to diversify our inventory acquisition channels and try to make a win out of our service drive. This auction thing isn’t going to be my golden goose forever.”