Data Science Driving Auto Industry Transformation

Across all industries, access to real-time data is helping to deliver the products customers want at a moment’s notice. In our industry — auto remarketing (aka “used cars”) — geographic regions and markets have constantly fluctuating demands, and real-time data is fast becoming the key to helping identify the cars our dealer customers want, and where. 

Before a consumer ever sets foot in a lot or looks online for their new car, a whole process has occurred to ensure the right car is there for them. Our industry has found that this data identification technology offers unprecedented opportunities for consumers to make more convenient, informed, and efficient purchasing decisions. With online solutions, dealers — and ultimately end-users — can research, shop, and buy the vehicles of their choice, anywhere, anytime.

At ADESA, we not only livestream our auctions, but auction our cars online using our digital inventory platform. In fact, more than 50 percent of our vehicles are now sold through an online channel, and many times the vehicle is sold online even before it can run through our physical auction lanes.

But that’s just the tip of the iceberg when it comes to the power of data science to transform the auto remarketing industry. Just as analytics allow Netflix to tailor recommendations based on personal viewing history and broader viewing trends, and constant data tracking helps Walmart purchase merchandise just in time to restock shelves, used car dealers can leverage data derived from purchasing trends in their market to customize offerings to meet local consumer buying habits.

Take for example Autoniq’s Profit Guide, which offers key details about dealer profits in more than 4,000 local markets. This report, updated bi-weekly, features essential information on individual vehicle sales, including sale price, cost, days to sell, and more. Users can examine individual transactions and sort information however they wish, helping to facilitate an optimal user experience.

Online solutions feature detailed photos of auction vehicles taken by a verified, third-party inspector. These photos are often accompanied by seller information, transmission type, mileage, trim, and even the number of marks on the vehicle — allowing the customer to feel as though they’re in the physical presence of the vehicle, inspecting it in person.

In today’s age of Amazon Prime, Instant Pot, and more, dealers are facing increasing pressure to provide solutions to consumer car buyers with exceptional speed, affordability, and precision. With the help of real-time data analytics, now they can. That perfect car at your dealer local lot didn’t just get there on a whim. It was the result of extensive legwork enhanced by data science, and we take a lot of pride in using this cutting-edge technology to match the right car to the right person.

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