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The Real Used Car Death Spiral

A few have vAuto too - they just haven't invested in employees competent enough to use it properly. It frustrates me to no end.
Dealers sign up for vAuto at different points on the Velocity journey. Some are already well on their way to a high turn rate, have a pretty complete understanding of how the Internet has impacted the pre-owned shopping process, and are looking for real data in real time for a better understanding of current market conditions.

Others are just starting the journey to becoming a Velocity Dealer. Our Performance Managers consult with these stores extensively, working hard to get buy-in from the front line managers and sales staff. Ultimately, each store moves at a different pace.
 

✨ AI Highlights

The thread discusses the "used car death spiral"—the risk that dealers competing on price will erode gross profit margins across the market—and argues that the solution lies in using real-time market data rather than relying on outdated pricing strategies or ignoring market trends. Through examples of successful dealers and vAuto data analytics tools, participants illustrate how competitive advantage comes from deep market insights and data-driven inventory management rather than simply undercutting competitors. The key insight is that dealers who invest in understanding their market dynamics and properly utilizing analytics tools can maintain profitability while staying competitive, whereas those without this sophistication will inevitably be forced into a race to the bottom.

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