U.K.-based automotive marketplace Auto Trader has launched a new Trended Valuations tool to enable retailers maximize profitability and target an increasingly nuanced market.

The tool is used in conjunction with Auto Trader’s Retail Check, Auto Trader said in a statement the tool will help retailers adapt and respond to market changes, so they can make quicker and more profitable sourcing, advertising and pricing decisions.

The Trended Valuations tool show the different valuations of the vehicle over the past six months and predicts the likely changes in value for the next six months. The valuations are based on a mix of live market prices, historic valuations, seasonality and age of the derivative within the lifecycle of the vehicle’s generation. Valuations can be adjusted to take account of anticipated mileage use over the forecast period.

Auto Trader said this will offer insights into potential profit, price sensitivity and margin risk because retailers will be able to appraise a vehicle before buying it. Retailers will be able to estimate its value after preparation, how quickly it will sell and when for its cohort it becomes overage. It will also enable dealers to manage risk by identifying vehicles that might make a loss sooner.

“Trended Valuations will be hugely powerful for managing part-exchanges, especially where new car lead times can mean the transaction is months away,” said Michael MacDonald, business manager at TrustFord Bristol. “I’ll also have a much better view of risk value on how long I keep cars in stock and know what’s going to happen to protect margin.”

Auto Trader said that retailers that already use Retail Check’s data are sourcing vehicles more confidently because they have more insight into current market conditions, pricing and how to best maximize profit opportunities. They are also able to monitor shifts in supply and demand, get an analysis of prices against similar stock in the market and estimate how fast a vehicle may sell when prices at its market value. This Retail Check functionality is now available for commercial vehicles.

“Given the growing complexity in today’s market and the rapid pace in which it’s moving, we feel this is one of the most effective ways we can drive confidence among Retailers and help them to navigate it profitably.” Said Auto Trader’s CPO, Karolina Edwards-Smajda.

“Our Valuations data alone was engaged with over 20 million times in September, which highlights just how vital a role our insights play in key retail decisions.”

Trended Valuations will be available as part of all advertising packages from April 2024 and both it and the enhanced Retail Check functionality will be accessible through the Auto Trader portal. For Auto Trader Connect users, the tools can be integrated into their chosen systems.

Early access to both Trended Valuations and Retail Check via Portal accounts will begin from January 2024, and via Auto Trader Connect from December this year.

AIM Group spoke to Auto Trader’s Karolina Edwards-Smajda in September about four key areas for the U.K.’s leading automotive marketplace; Data and Auto Connect, Deal Builder, EVs and leasing and subscription models.

 

 

 

 

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