In this week's episode, Bob shares snapshots of data extracted from Galves and Accu-Trade to showcase why dealers should be buying and pricing based on replacement value, not retail. Have you modified your strategies in order to keep up with the volatility? The locks on the door to inventory success have been changed. If you keep using the old key, you'll continue to be frustrated. Replacement value is the only relevant and rational method of pricing vehicles.
In this week's episode, Bob shares snapshots of data extracted from Galves and Accu-Trade to showcase why dealers should be buying and pricing based on replacement value, not retail.
Accu-Trade has information totally unique to our industry because we are traders ourselves.
“We are by nature traders. We have 1300 years of experience with our little group of folks that have been with us since the beginning of time, 1300 years, 1300 years, individual years of experience in the wholesale business valuation business.
As a result, our data tends to be a little closer to reality.
When I say reality, I shouldn't say a little closer to reality, a little closer to a checkbook, not a speculative, theoretical, don't ask me if you really need to do something type of thing, but in other words, a hundred percent, 100% of the time. If you need to check, you can touch the machine and it's going to spit one out. You know, that's just how simple that is. Right? And, and when you reach out, you're actually talking to someone who has had more experience in the open marketplace as individuals, than anybody else in the industry.”
3:34 - “ All the books and market reports are all lies. They're all lies.”
5:55 - Stop using oxidized theory about pricing cars to the market. You’re going to get locked out of the market if you keep doing things the way you’ve always done them.
7:34 - “Well, what's the actual market. It's the commodities market. What's the commodity? It's a VIN. The VIN is a commodity that when you put it in front of all potential best end-users, it comes up with a value within 15 seconds.”
You can’t sell a car for less than you paid for it.
10:30 - Nissan isn’t going to be doing it anymore.
13:00 - Are we going to offer the consumer more money for their vehicle than they paid in 2018? Of course not.
15:50 - Sooner or later the market is going to shift but nobody has a crystal ball.
For the Youtube version of this podcast, with pricing examples, please copy and paste this link: https://youtu.be/dzv30e_vUAE