ADESA, a provider of digital marketplaces for wholesale used vehicles supported by more than 70 vehicle logistics center locations across North America, on Oct. 28 revealed a new tool to enhance the reconditioning process and improve return on investment for sellers, according to a news release.
By leveraging millions of data points on vehicles, repairs and sales, the technology arms sellers with actionable repair suggestions that maximize the profit opportunity on the resale of those vehicles in the wholesale channel. The new tool showcases how specifically tailored repairs and enhancements will improve its vehicle grade, helping vehicles become front-line ready faster.
“With instant access to recommended recon services and the ROI of each, this new tool makes it easier than ever for sellers to make data-driven decisions on the fly,” said John Hammer, chief commercial officer of KAR Global and president of ADESA, in the news release. “We’ve seen impressive results throughout our pilot period, even in a hot market, due to our sellers being able to invest in the right repairs to yield the highest possible return. Plus, sellers can see all of their vehicles in one place, along with the status and location of each, from check-in to inspections to shop work all the way to sale.”
The reconditioning tool visually displays the cars as recommendations in one centralized digital location, the ADESA Portal, putting access in the hands of the seller. They can see which services will improve the grade and therefore boost profit. A maximum cost can be set to determine repairs and upgrades to the vehicle within budget while driving greater wholesale value.
“With a few clicks, sellers are able to decide which services to move forward with based on grade improvement, spend and ROI,” said Srisu Subrahmanyam, chief operating officer of ADESA. “With bumps in grade improvement, we are driving more eyes to the vehicle, as many customers filter by grade when evaluating inventory to purchase. Our sellers aren’t the only ones benefitting; dealers are reaping the benefits of retail-ready, higher-quality vehicles, cutting valuable cycle time between when they purchase at auction and when they can deliver to their retail customers.”
ADESA is a business unit of global wholesale used vehicle digital marketplace operator KAR Auction Services, Inc. dba KAR Global (NYSE: KAR).