As wholesale prices continue to climb, KAR unveils ‘% to Retail’ feature

CARMEL, Ind. –

Data contained in the most recent Kontos Kommentary may have enhanced the value of ADESA’s latest platform functionality to help dealers continue to be profitable in times of unprecedented wholesale pricing.

Coinciding with the launch of the company’s proprietary “% to Retail” tool, KAR Global chief economist Tom Kontos said average wholesale vehicle prices had crossed the $ 14,000 mark for the market. first in April, then hit new highs above $ 15,000 in May.

According to KAR Global Analytical Services’ monthly analysis of used vehicle wholesale prices by vehicle model class, wholesale prices in April averaged $ 14,436 – up 5.9% from March 50.0% above the April 2020 reading and 25.7% above the April 2020 period. COVID / April 2019

“This is the latest sign of the seemingly endless increase in wholesale values ​​resulting from a deluge in demand and a drought in supply,” Kontos said in his latest analysis.

“Retail used vehicle and CPO sales slowed down a bit in April, but it is unclear whether sales were limited by demand or supply and nonetheless remained high,” he continued. .

With these parameters in mind, KAR Global also announced that all advertisements of vehicles bought / purchased 24/7 in ADESA’s digital marketplace now show the current supply of the vehicle compared to the estimated price of the vehicle. national retail market used.

KAR pointed out that “% to Retail” is powered by autoniq, a sister company of ADESA and a provider of app-based vehicle pricing and valuation information.

According to a press release from the company, the new feature is aimed at helping dealerships quickly analyze vehicle prices and make more informed decisions about the best inventory for their lot.

“Our customers are experiencing unusual market dynamics across North America, so having instant access to real-time vehicle valuation information has never been more useful and important,” said John Hammer, commercial director of KAR Global and president of ADESA. “With the ‘% to Retail’ feature, we make it easier and faster for dealers to identify vehicles that are priced to suit their wholesale retail strategy.

Our digital markets are expanding the pool of new inventory available to buyers, and “% to Retail” will help them make better, faster and smarter bidding and buying decisions, ”continued Hammer.

The company explained that the “% to Retail” feature uses KAR’s proprietary data science capabilities to assess data from ADESA and other KAR digital markets as well as the latest industry, market, and industry data. economy to accurately estimate the potential profitability of vehicles. Buyers can filter their searches on ADESA by “% to Retail” range to focus their bids and purchases on vehicles in a particular range – and each listing will tell the dealer the estimated margin between the wholesale / bid price and the sale price. estimated detail.

KAR indicated that vehicles with a lower retail percentage present the greatest opportunity for retail profit, while those with a higher percentage are closer to the estimated market retail price.

The company also mentioned that the search capabilities allow buyers to sort and / or filter vehicles based on additional specifications such as proximity, make and model, and condition to showcase all available vehicles.

“Dealers who have tested the ‘% to Retail’ feature have always found it easy to use and beneficial in finding the best and most competitive vehicles,” said Rick Griskie, president of digital markets at KAR Global.

“This new functionality allows our dealers to find the exact inventory that supports their overall retail strategy, and we have already seen early success with our dealers using the tool showing a 20% success rate. higher in the search for vehicles to buy compared to those who did. don’t use the tool, ”Griskie continued.

Kontos pointed out another piece of information in the company’s latest data set that could boost the value of the “% to Retail” feature.

“Interestingly, compact cars and full-size SUVs / SUVs both saw month-over-month increases of over 9%, illustrating the magnitude of demand across all used vehicle segments. young and old, ”said Kontos, who also offered his point of view. through a video it can be seen here.

And Kontos also recently appeared on the Auto Remarketing Podcast to discuss the “Perfect Storm” impacting the wholesale market and more. This episode is available below.

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