Lithia’s Q3 results caught my attention. Same-store used volume declined 3.2%, while gross profit per unit increased 13.3% to $1,993. Management cited dynamic AI pricing as one contributor.
The real question is whether AI can distinguish an overpriced vehicle from one that is correctly priced but poorly merchandised, at the wrong rooftop, or worth holding longer.
For those using vAuto, VINCUE, DealersLink, LotIQ or something custom:
The real question is whether AI can distinguish an overpriced vehicle from one that is correctly priced but poorly merchandised, at the wrong rooftop, or worth holding longer.
For those using vAuto, VINCUE, DealersLink, LotIQ or something custom:
- Does it ever recommend holding or raising a price?
- What does it consider beyond comps and inventory age?
- Has it improved gross and turn?
