KAR Launches Suite of Data Science Capabilities Aimed at Optimizing Dealer Profitability
PRNewswire 25-Jan-2019 4:15 PM
SAN FRANCISCO and CARMEL, Ind., Jan. 25, 2019 /PRNewswire/ -- KAR Auction Services, Inc. (NYSE:KAR), a global automotive remarketing and technology services provider, announced the launch of a pilot program for its Data as a Service (DaaS) suite of capabilities during the Auto Intel Council news conference at NADA Show 2019. Powered by DRIVIN, acquired by KAR in 2017, these new DaaS capabilities leverage data and technology from across the KAR platform and use proprietary algorithms to deliver clear, easy, actionable intelligence to dealers. By integrating data science, predictive analytics and machine learning into the dealer remarketing process, dealers can save time and may increase sales margins and cash flow.
"Every day our customers are making inventory decisions — deciding which cars will sell quickly and profitably on their lots and how to best replenish inventory," said Joe Oliveri, general manager, KAR Data as a Service. "We have the capabilities to help our customers make faster, better informed decisions specific to their individual rooftops, not just their state or their market. Our rich data coupled with predictive analytics can pinpoint which cars will sell quickly at retail, which trade-ins to keep for retail sale and which ones should go to auction along with the auction channel that would provide the fastest sale at a fair price."
KAR's ADESA business unit, which operates more than 75 physical and online auction marketplaces, is piloting the new technology with a major East Coast dealer group representing nine OEM franchises. KAR DaaS capabilities can offer actionable analytics for dealer customers — saving them time and money. Currently in pilot with several dealers, KAR is providing lot analysis reports with data and recommendations specific to their dealership and more specifically to the individual vehicle.
"Not all vehicles are created equal. Each car has a unique value curve depending on the lifecycle of that car and a host of other economic, market, and dealer behavioral data," said Oliveri. "Through data science, we are now starting to inform dealers participating in our pilot the likelihood a specific vehicle will sell — both retail and wholesale — and when they should dispose of identified inventory."
Dealers participating in the pilot get a holistic snapshot of what is in demand, the vehicles that could provide the best return on investment and how to best dispose of less desirable vehicles — all specifically relevant to their individual rooftop. KAR provides the pilot program dealers with lot-specific reports containing inventory segmentation analyses, purchase recommendations and remarketing advice — giving dealers targets for the best vehicle mix, propensity to sell and optimal disposal channel. As the pilot continues, KAR is fine-tuning the reporting and algorithms based on feedback from pilot program dealers, sales information and market reports.
About KAR Auction Services
KAR Auction Services (NYSE:KAR) provides sellers and buyers across the global wholesale used vehicle industry with innovative, technology-driven remarketing solutions. KAR's unique end-to-end platform supports whole car, salvage, financing, logistics and other ancillary and related services, including the sale of more than 5.5 million units valued at over $40 billion through our auctions. Our integrated physical, online and mobile marketplaces reduce risk, improve transparency and streamline transactions for customers in 120 countries. Headquartered in Carmel, Ind., KAR has approximately 17,500 employees across the United States, Canada, Mexico and the United Kingdom. For more information go to www.karauctionservices.com. For the latest KAR news follow us on Twitter @KARspeaks.
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SOURCE KAR Auction Services, Inc.
