Autorola to launch big data used car pricing tool
19 June 2017
Author: Jack Carfrae
Remarketing company Autorola is to launch a new tool that uses big data to analyse the used car market.
Known as Indicata, the service will collect, process and analyse live used car market data to provide insights on market dynamics including demand, supply, pricing and inventories. The new system aims to help improve profitability in used vehicle operations and protect residual values.
It scans sources such as classified online adverts, manufacturer and franchised dealer websites and independent used car retailer sites to identify the most up-to-date values for used vehicles. Users access the service via their web browser and it provides information in a dashboard format, similarly to fleet management systems.
Indicata already exists in around 10 other markets and is due to launch in the UK in less than three months. "It's a pricing tool and an operating tool to help managers make more informed decisions about used cars," said UK group sales director Jon Mitchell. "We scan the market and compare all types of big data to answer questions such as: Do I bid it high? Do I bid it low? What should I do with it? Where's it going to sell best? Do these cars sell well in my area? There's a lot of analysis in it."
Autorola claims the practice of using real-time data will give users a more immediate reflection of second-hand vehicle prices than traditional, historical data. "There is a lot of business intelligence technology out there that runs various analyses post-mortem," said Jörg Höhner, global MD for Indicata. "This is like looking in a rear-view mirror to understand where you are going. It's just not the right way to get the insight you need.
"In a time where the market conditions change faster than ever, there is a need to fundamentally adapt used vehicle operations and management of inventories."
The firm did not say how much the service would cost, but users will be charged a monthly access fee. Mitchell said it will chiefly target dealers during its initial phase, but added that it is already being used by leasing companies in other markets and will extend to the fleet and rental sectors in the UK.
"This product is moving into the leasing sector, and it will be something that we will be talking to the lease companies about. The priority will be dealers, but we're already working with fleet companies abroad with the product, so I think it's only going to improve in that area."